- Tram Ho
In a quarter of declining revenue across nearly all major hardware products, two “sub-revenue” segments helped Apple escape the recession. Thanks to strong growth in services and accessories, Apple’s total quarterly revenue not only did not decrease compared to the same period in 2020, but even increased slightly (1%).
For those who follow Apple’s business situation, service revenue increased in the last quarter is inevitable. Users who do not leave the house will have more and more time to use content services such as Apple TV +, Apple News +, Apple Music … In March, there was a time when Apple still had to cut down the quality of Apple TV + playback. to meet the needs of users.
Despite the plague of the epidemic, Apple’s wearable segment recorded record sales for the first quarter.
And the success of the accessory segment (Apple Watch, AirPods, HomePod) is a big surprise. Right in the shareholder meeting after announcing the first quarter results, CEO Tim Cook and CFO Lucas Maestri had to admit that wearables (technology fashion) has been affected a lot of times when stores were closed. March. Like other hardware segments, Apple Watch or AirPods must accept the negative effects in the supply chain and distribution chain.
Yet in the risk there is luck. At the same meeting, CEO Tim Cook spoke up about the benefits of Apple Watch in the Covid-19 era:
“Doctors and medical staff are using Apple Watch more and more to communicate with patients and treat them safely from afar. For example, with FDA guidelines for patient monitoring. noninvasive remote, the ECG app of Apple Watch is being used to help ECG measurements and monitor drug use information remotely, helping reduce employee exposure / exposure. medical and patient “.
The superior market share also makes the Apple Watch the most popular remote health monitoring tool during the season.
Certainly, the need for remote health monitoring will not end after Covid-19 is pushed back. For Apple, this is a new success, the disease is opened up. As for Android manufacturers, this is a missed opportunity.
Because Apple can be considered the slowest in the wearable world. When Apple unveiled the first generation of Watch in September 2014, the iPhone market share was crushed by Android manufacturers, smartwatches running Tizen (Samsung) or Android Wear were available on the market. Yet within a year, Apple surpassed nearly all watch brands on the market except Rolex. A year later, Rolex was defeated, and by the end of 2019, the Apple Watch sold more than the entire Swiss watch industry.
The distance between Apple Watch and other competitors in the technology industry is also not small. With a 31.7% market share (IDC data), Apple’s wearables outsold Samsung and Huawei … combined. Even the nearest rival chasing Apple, Xiaomi, when using cheap guise, could not gain market share by half of Apple. This dominance makes Apple Watch the most popular health monitoring tool.
Although not inferior to Apple in terms of features, Android vendors have not been able to bring market share from smartphones to smartwatches.
Can this advantage be reversed? After all, Android brands are still dominating the smartphone market, the type of device that plays a central role in today’s digital life. Technology distance is not much. For example, when the Apple Watch S4 launched with an electrocardiogram sensor, Samsung and ASUS quickly equipped this sensor for their smartwatches. With other popular features like heart rate monitoring or health monitoring, Samsung smartwatches and Android manufacturers are even ahead of Apple Watch.
But above all, Apple has an unrivaled weapon. It is not unreasonable that even though it only occupies a very small smartphone market, Apple dominates the relevant markets such as applications, smartwatches, True Wireless headphones or tablets: because iPhone users are more likely to pay, they are available. willing to “spend” more for a full Apple experience. This advantage has helped Apple quickly rise to master the smartwatch market, allowing Apple Watch to set a record even in “adversity” as Covid-19.
Source : Genk