|Apple's flagship product, the iPhone is said to be the reason behind Apple's income grew up but it is said to be one of the reasons behind many problems at the company / Photo by: Tinh tế Photo via Wikimedia Commons|
Leaning into its luxury brand reputation has made the iPhone somewhat unattainable and has helped accommodate newer phones and models into the market with their comparatively cheaper price; but is the entire luxury brand selling point actually damaging the company?
Firstly, it’s important to note that despite the fact that Apple is known to put a hefty price tag on their products, they still turn a profit from them, albeit as of late this seems to be really dragging on their growth. Gadgets Now reported that Apple suffered a 5% decrease in the recent quarter, compared to last year’s data, which was also recorded around the same quarter.
Overall, that decrease also weighed down on Apple’s revenue last year, which was at $38 billion and then to $31.05 billion, down by $7 billion. Even then, the iPhone remains Apple’s best performing device among all of its products, claiming 53% of the company’s overall revenue.
Apple doesn’t release data on how many units are sold exactly, but the decline alludes to the fact that the sales have not been going on as smoothly. Subsequently, the many new smartphones streaming into the market suggest that there are more competitors now than there had been before when all Apple had to do was beat Samsung at their own game.
Right now, the challenge is to come up with new devices to be released periodically, with radical new features to beat the hurtling tide of new tech coming in mainly from Asia.
There is also the matter of the US-China trade war to contend with, something that still dampens not only the American economy, but also the Chinese economy, with the latter performing marginally better in terms of economic stimulus to turn the economic situation around.
This much is true and was reported by the IDC, which revealed that the decline was due to Apple managing to ship out only 36.4 million iPhone units in the recent quarter, which was “30% less than what it did in the corresponding quarter last year” during which Apple was able to ship out 52.2 million units.