How is Apple making money in the “post-iPhone” era?

According to author Mike Murphy of Quartz, Apple is having some growth issues. For some reason, in terms of business and revenue, they have just proved that they have just started to dominate the market, but at the same time, they have a feeling of being stuck with the business idea. If you look at sales figures, you can see that last quarter Apple earned nearly $ 54 billion, but the growth rate is showing signs of slowing down, almost equal to zero. The figures in this article are all from Apple's financial statements.

The reason is, the iPhone, the chicken that lays golden eggs for Apple, is showing signs of declining sales. In the past, this phone accounted for about 45% of Apple's total revenue. In particular, at one time, 70% of the entire group's revenue came from smartphones. However, if you look at the chart below, iPhone's profit growth is negative.

This fact happens to Apple, because it is having difficulty developing new iPhone markets, such as China and India. Not to mention the average-income consumers in these markets are not necessarily ready to spend a large amount of money just to buy iPhones to use, especially when in China there is no shortage of cheap Android devices, but also in India Android is still a much stronger market than the iPhone.

Apple's quarterly revenue, except for the US market, has been standing still, with no recent growth:

In early 2018, Apple halted its stock transactions to declare 2018 revenue reports, thereby failing to meet sales targets for the end of 2018 shopping season. This is an event that has never happened to Apple. since the iPhone launched in 2007. Tim Cook blames the Chinese market. But when you look at the chart below, you must also see the problem clearly. The price of devices from iPhone to iPad gradually increased, but the revenue stood still, only for one reason, the vending machines were no longer running as before. Apple's product growth is approaching zero. And it doesn't just happen in China:

Basically, Apple hasn't increased device sales in recent years. They choose to increase the price of their products to compensate for the loss of revenue, but that makes consumers choose to give up trying to spend a thousand dollars to buy a phone. From this year, Apple stopped announcing sales of its products, whether it sold more than the previous year, not important because their products are at different prices, but most importantly. is the revenue. Bet that Apple doesn't like the charts above, and it certainly won't like the ones below, as iPhone sales compared to Apple's entire revenue are shrinking:

Fortunately for them, a few solutions have been offered with positive results. Sales of wearables like Apple Watch and AirPods are growing significantly. Meanwhile, as many previous articles you read mentioned, Apple is attacking the service market, with Apple Pay, Apple Card, Apple TV +, Apple Arcade and News … Thanks to that, Apple's revenue does not affected too much even though sales from the iPhone slowed down.

Except for the iPhone, all other areas of Apple have a relatively stable growth:

They are also accumulating large amounts of cash. Not to mention the possibility, when they see a potential startup, a good movie studio, or any company that can help develop Apple's ecosystem, they will splash out on money. Whether spending money like autumn leaves to make movies on Apple TV + or investing in Apple Card development, Apple still has $ 210 billion in the bank, ready to withdraw at any time.

In addition, Apple now spends a lot of money developing and researching new products over the past few years. The number of 5 to 10% of revenue for R&D sounds small, but for Apple that means billions of dollars, not small at all. Without excluding the possibility, they are cherishing something that allows market changes just like what they did in 2007 with the iPhone. What is the "next iPhone", no one knows, so please wait for the market developments in the next 5 years.

Source : TinhTe