Shot on iPhone XR: Users share portraits, landscapes and more

Doris Richards
November 16, 2018

The announcement raised questions whether iPhone sales are reaching a plateau despite increase in average selling price of these devices.

Analysts from Wall Street are concerned that lower iPhone sales will cause Apple to lose its smartphone market share since fewer people are buying Apple's expensive phones, something that would slow down revenues from Apple services. That, in turn, could hurt the growth of Apple's services revenue, said Bernstein's Toni Sacconaghi.

Without volume growth in promising overseas markets such as India, Brazil and Russian Federation, the worry among analysts and investors is that Apple has at least parts of its strategy wrong with too much emphasis on its premium brand and the high prices that go with it, more than $1,000 for its top models. You'll also have to trade in an eligible phone.

Apple has successfully navigated the industry by increasing price of iPhone and getting away from decline in sales.

According to IDC, except for fiscal 2015, Apple has not increased its market share. At the end of third quarter, IDC claims Apple had a market share of 13.2 percent, registering a modest growth of 0.5 percent over same period past year. For starters, you'll have to open up a new line of service with the Uncarrier.

But IDC expects the global smartphone market to grow only 2.4 percent on a compound basis to 1.6 billion units by 2022, indicating a saturated market in which the Cupertino, California-based firm will be fighting rivals for each customer.

Xiaomi, in particular, is gaining fans rapidly. Mid-priced phone firms from China, such as Xiaomi, are providing Apple with stiff competition, especially in growing markets overseas, such as India, Russia, and Brazil.

Amongst the three Chinese smartphone companies, Xiaomi is rising quickly. Furthermore, Xiaomi is breaking new ground in Spain and in other parts of Europe.

At the fiscal four quarter earnings call early this month, Apple announced that it will stop sharing unit sales of iPhones starting next quarter. The company is projecting itself as a service business instead of hardware business but more than two third of its revenue comes from iPhone sales during the year. And iPhone suppliers Lumentum Holdings (LITE) and Japan Display (6740.Japan) also lowered their financial forecasts on Monday, prompting a selloff in the stocks of Apple and its suppliers.

Other reports by Iphone Fresh

Discuss This Article