Is the iPhone Getting Less Profitable for Apple?

According to the reports of Strategy Analytics, this year there is an 8% decrease in the sales of iPhone this year in comparison with 2017.
According to the reports of Strategy Analytics, this year there is an 8% decrease in the sales of iPhone this year in comparison with 2017.
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The market for smartphones has now become stagnant. The fight between iOS and Android will be never-ending. But however, after Apple has revealed its sales, there is a surprising observation which will make you think for a while.

Since 1998, every year Apple releases all the information regarding unit sales as a component of their financial returns. The golden era of the iPhone is gradually coming to an end. According to the reports of Strategy Analytics, this year there is an 8% decrease in the sales of iPhone than 2017.  

Apple’s Annual profits for iPhone Falls for the First Time in 15 Years

The humungous Silicon Valley organization which once bounced back from bankruptcy is now one of the highest valued technology firms in the world. The decline has hit the sales remarkably and some of the tech experts have stated that Apple might have reached a stage called peak Apple. This suggests that in this world, everyone owns an iPhone. This year Apple has sold over products worth $215.6bn. The combination includes iPhone, iMac, Apple watch and computers. This indicates that there is an eight percent decrease in sales.

Apple saw this phase after 15 years because of their iPhone. By far, smartphones are Apple’s most essential and valued product. People buy the iPhone more than MacBooks and Mac computers. Smartphones account approximately two-thirds of the entire Apple’s sales in a year. However, in the last year, Apple sold a mere 45.5m iPhones, which is a five percent decrease from the past year.  

 

Insulating Prospect and Risk  

The rise of smartphones was during the period of the global recession. But, the financial move by Apple is said to be the reason for iPhone’s downfall. The dropping shares and decreasing sales are nothing but a signal that iPhones are no longer able to retain the market for Apple. Sales and share values are not simply hit by reality, but by the idea of what an assumed projected truth may be.

The decision by Apple to gradually insulate the firm from falling shares or fluctuations is the reason behind the decrease in iPhones demands. It is high time, if Apple does not takes any serious step, then it might so happen that Apple needs to draw money from the consumer base. Tech giants success stories will not only guide you on how to make a profit, neither it rests on the same platform. But, what is important for a company is to have consistent growth. Therefore, if the company always wins, then the consumer base will eventually fluctuate.

The CEO of Apple, Tim Cook always mentions that the company will come back with a product like no one. After his iPhone 7, 8, X and now X Max and Xr Apple have developed its flagship phones worth $1000. However, the company’s share remains static. In countries like the UK, the preponderance of iPhones is 31.8%. India and China are hopeful nations for the market of iPhones as the sales of the phones are high here.  

 

The twist in the Tale- Thanks to iPhone X

Apple’s quarterly earnings reports said that the use of iPhones has come to a halt and Apple is readily seeing a downfall in shares after fifteen long years. Despite the contraction in sales of iPhones, Apple as a whole made a profit.

All thanks to the new model Apple iPhone X. The phone has made billions and helped to maintain the sales of Apple. The revenue increased to 11.69% that accounts to be about $61.58 billion than the last year $54.38. Analyst says that the slight increase is always expected from Apple’s family.

The quarterly revenue of Apple are up by 13% and as per Cook, iPhone X has surpassed all the expectations and turned out to be the top-grossing phone in one year. Apple may have traded on fewer iPhones, but the one which is selling has a high market value and is the most costly phone.

 

Closure

Apple and its smartphone models are evolving every year despite the fact that the prices are also reaching sky high, there is one section of people, and the purchase will remain stagnant. So, even if Apple’s sales have decreased for some iPhones, its new models can help maintain the company’s fair share in the market.

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