Apple's "engine"? According to some market analysts, it is no longer an iPhone. Incidentally, this distinction cannot yet be attributed to services, but to accessories, gadgets and wearable company. Products like the Apple Watch and AirPods, two products that support the company's growth.
As iPhone sales grow, your smartwatches and Bluetooth headsets are growing!
According to Apple's latest fiscal report for April-June 2019, iPhone sales are down. In fact, sales decreased by 12% over the same period in 2018. However, this decline was offset by wearable,
The iPhone provides ...
As the iPhone goes through a recession, wearable are on the rise. In particular, Apple Watch and AirPods revenue grew 48.3%. Therefore, this is an extremely significant increase with the solid capital inflow generated by these smart accessories.
In fact, both Apple Watch and AirPods led their market segment during the quarter in question. Something that has been proven by various market analysis agencies, as you can see from the article listed below. From this we can see the growing popularity of these products.
In particular, wearable generated $ 5.53 billion in the three months under review. As a result, we have a remarkable growth compared to the generated (revenues) of $ 3.73 million for the same period of 2018, the second quarter. So a new success story materializes in the tech giant.
AirPods and Apple Watch, the new stars
This new paradigm has made UBS market analyst Tim Arkury look with a fresh eye on the company, run by Tim Cook. So, according to the same, they are wearable that drive technology bills. That is, the current growth is mainly due to Apple Watch and its AirPods.
Growth Engine is no longer an iPhone to rely on accessories. According to the analyst, for the first time in history, in the fiscal quarter, wearable registered higher growth than Apple's services when comparing periods from year to year.
The surprise comes from the expected solid growth in the company's services. A segment that includes Apple Music, Apple Pay, iCloud, as well as the App Store and Care. Here we also have new bets like TV +, the news service, and in the future, the Arcade game service.
Services are one of Apple's largest sectors
The industry reported $ 11.05 billion in three months. However, its growth was "only" 12.7%, compared to $ 10.2 billion for the same period in 2018. Therefore, we see healthy growth in this area, although wearable they won the podium.
The analyst is also confident of launching the third-generation AirPods. However, he said that only 7% of iPhone users have a pair of these handsets. Therefore, according to him, there is a huge growth potential for this accessory, which is already in high demand.
It should also be noted that this year Apple released the second generation of the product. It is now equipped with an H1 processor over the W1 used in the first iteration. In addition, we now have a longer battery life, also reducing the latency (delay) in audio transmission, as well as voice commands.
What can we expect from the next AirPods?
The integration of the Siri Virtual Assistant is also a notable bonus, as is the ability to charge the AirPod box wirelessly. However, the analyst believes that there is still room for improvement on this product and even indicates some of the expected points of increase.
With a possible release this fall, the third generation may bring some improvements over last March's version. These include waterproofing and the use of new material in its construction. This is to make them less slippery and susceptible to falls.
Similarly, the analyst points to the integration of active noise reduction technologies. Consumer-requested novelty that can be accompanied by water resistance. Finally, it is also proposed to provide new color schemes in addition to the only tone currently available.
Perfect Satellites for Apple Watch?
Already, according to another source, Ming-Chi Kuo analyst, the next generation of Apple Watch may arrive with the next iPhone. That way, we will have a two-sided presentation next September and not to miss out on the company's wireless headset.
This may be the perfect formula for a company that is struggling with the fading interest in the iPhone. On the one hand, strong growth in services and, on the other, its accessories, encouraging strong demand growth. In addition, these types of products are a great passport for the Apple ecosystem.
Read more ...