In the last quarter of the year, the iPhone has reached another important milestone. According to the firm Strategy Analytics, Apple’s smartphone has achieved 51% of the revenues generated in the last Christmas quarter.

IPhone triples Samsung’s revenue on smartphones

The financial results for the fourth quarter of last year brought new records under its belt. Apple came to enter more than 88,000 million dollars, of which more than 61,000 corresponded to the iPhone.

With this figure in hand, Strategy Analytics has grouped three manufacturers who have detailed the income generated by their smartphone divisions. It remains as follows:

The iPhone is crowned as the device that has generated more revenue in those three months, ahead of Samsung and Huawei. The case of the Korean firm is striking because it emphasizes that the main business of the chaebol in this market are the mid-range and low-end terminals.

In any case, both companies see their revenues grow compared to the same period of the previous year. Apple is back to lead the growth with more than 7,000 million dollars additional. It is striking that all this growth occurs in the three companies, but that the catch-all “Other” falls by about 3,000 million. That is, users are shifting their interest towards more established brands, with average prices higher than before.

The key is in the iPhone X

Before Apple presented its financial results, doubts began to surface around the performance of the iPhone X in the market. After the publication of the numbers, it was clear that users were very interested in a device of these characteristics despite its high price.

As we saw a few weeks ago, the iPhone X has catapulted up the average price at which the iPhone is sold.

The average price of the iPhone is close to 800 dollars and represents an increase of almost 15%. As the smartphone market matures, users see this device as a vital tool in their day-to-day life. This has two effects. The first, they are more willing to invest a higher amount in their next terminal, one like the iPhone X.
The Apple Watch, the AirPods and rumored Apple glasses are the future of the company beyond the iPhone

The second is the extension of renewal cycles. Now that the terminals are increased their life, more when it comes to iPhone whose software support is at least five years, users delay that renewal over time.

In the case of Apple, the company has sold 1.2% less iPhone in the previous quarter despite the rise in revenue generated by the iPhone X. Selling more terminals is going to be increasingly complicated, hence Apple is struggling to push its wearables division as a line of future business growth.

LEAVE A REPLY

Please enter your comment!
Please enter your name here