On Tuesday, all eyes and ears will be on the report of Apple’s earnings. Before that, there are grim predictions about the wild growth of iPhone coming to an end.
Since its launch in 2007, iPhone has been enjoying higher quarterly earnings. But this time, Apple is expected to announce that its iPhone sales are declining during its quarterly earnings report on Tuesday.
Based on the last figures that Apple shared, the sales of its iconic iPhone make up 63 percent of the company’s entire revenue. This has led analysts to suggest that the company is becoming a one-trick pony.
Thus, it’s no longer surprising to see Apple’s share price to go lower than $100 for the first time since last year as investors feared that the company could no longer boost its iPhone sales. For months, there are hints of slower sales of iPhones as various companies warned that the firm is ordering fewer parts than ever.
But the woes of Apple as regards to its iPhone sales are just a reflection of how other smartphone companies struggle to boost their sales. Across the world, more people are buying smartphones. As a result, the market for new buyers significantly shrinks.
Furthermore, the company is also facing fierce competition in the Chinese market that offers low-cost phones. The rise of cheaper phones drove the average price of a smartphone to go down as deep as $263. This is just a representation that manufacturers offering a more affordable smartphone continue to move up and garner more attention.
Even though those cheap devices couldn’t match the overall performance of an iPhone, they’re already good enough for most consumers. Low-cost Android phones, for instance, are getting popular. Unfortunately for Apple, the company doesn’t have a competitive answer to that.
If this is the beginning of the end of the company’s main piece, what are some of the products that the company is up to boost its value?
One of the things that Apple is experimenting on is the Apple Car. Although the company hasn’t confirmed the reports yet, tech bosses have considered the possibility of the company’s investing in an Apple Car. As Elon Musk described it, Apple Car is an open secret as no one can hide something when you’ve already hired 1,000 engineers to create it.
An announcement of an Apple Car may send the company’s share prices in an upward direction. If the reports are true, it will still be a challenge for Apple as numerous automakers now are considering the building of electric cars. Tesla, for one, has already become a major market player.
In addition to Apple Car, the company may also build a more budget-friendly iPhone. The iPhone 5SE is said to be scheduled to launch two months from now. It will replace the iPhone 5C on the bottom part of the company’s iPhone portfolio.
In the past, the company has been under pressure to build a cheaper smartphone. The tech giant did respond with the iPhone 5c. It had a plastic case without Touch ID feature. But it wasn’t a huge success. Because of that, the company didn’t release a “c” model since.
Over to You
Do you think that the predictions of Apple’s quarterly earnings could come true? Are you still using iPhone? Or did you opt for a cheaper smartphone?