- Tram Ho
Apple entered the last quarter of 2019 in a unfavorable position. Despite being praised by experts for improvements to battery life or camera, iPhone sales and sales in the previous quarter (launch quarter) continued to decline. While Apple has upgraded its upgrade cycle to 3 years, rivals continue to launch powerful attacks, most notably the Galaxy Fold with the ambition to overthrow Apple from the high-end segment. Even the power battle, which has been promoted by the iPhone, has seen Qualcomm-powered Android models dramatically shorten the gap. In terms of market share, the global third position is considered to have completely slipped out of Apple’s hands after Huawei rose strongly thanks to its success at home.
More than ever, people have the right to think that the iPhone is about to run out of time. But the truth is exactly the opposite: by the end of the fourth quarter of 2019, iPhone sales reached $ 56 billion, up 8% over the same period in 2018. Also in this quarter, Apple’s profits reached $ 22.2 billion – highest in Apple history and also the highest in the history of any technology company.
iPhone crushes rivals in revenue.
To give you a better idea of the huge success iPhone has brought in the last quarter, $ 56 billion is 3 times higher than Huawei’s smartphone sales in the same quarter. Compared to the lighter competitor Xiaomi, Apple’s earnings from smartphones in one quarter were three times higher than what Xiaomi earned in a whole year (2018).
Counting on profits, the $ 22 billion Apple earned in the last quarter was nearly four times higher than Samsung, its only rival in the premium segment. $ 22 billion profit also means that Apple’s profit in one quarter is double that of Huawei in the whole year (estimated at the rate of 8.7% that Huawei announced in H1 and the first 3 quarters of the year).
In short, competitors simply don’t have a window to compare to Apple on the two most important indicators – revenue and profit. Considering the difficult and mysterious situation of the iPhone when entering the last fiscal quarter, this unexpected success can be considered as a testament to the absolute power of the Apple family: even if all signals are heralded the opposite, the king was simply … the king.
The iPhone, the “out of date” product line, is currently growing at double digits in many important markets.
An extremely bright future is still ahead. In a shareholder meeting held after the financial results were released, Chief Financial Officer Lucas Maestri confirmed that iPhone sales had just hit record levels in both saturated markets such as the US, UK, France and other countries. New markets like Vietnam, Mexico and Thailand. Even many markets are growing at 2 digits.
What an out-of-date product can grow at a 2-digit level and crush competitors in terms of revenue and profit? This year, Apple is expected to end the notch design launched by iPhone X in 2017. And if the iPhone 11 generation with a recycled design can still bring Apple to the top, what will prevent the iPhone 2020 from coming? keep setting new records?
Source : Genk