Apple CEO Tim Cook has pivoted it as a services provider, resting on its storied manufacturing capabilities. In doing so, he has defied sceptics who long feared that Apple’s foray into other devices would rob it of its snob value. None of that happened. Mint explores how.
How’s been the trend in Apple’s revenue of late?
Apple clocked its highest-ever revenue in the June quarter with 11% year-over-year growth to $59.7 billion. During the earnings call, Cook credited the performance to “double-digit growth in both products and services” and “growth in all of its geographic segments”. This is even more interesting because the June quarter is usually lean for Apple, as most buyers wait for its new product announcements in September every year. Apple’s market capitalization hit $2 trillion last month, doubling its valuation in just over two years. Many have recognized this as a sign of just how future-proof the company is.
What about the firm’s performance in India?
While Apple still has just about 2% market share in India, the tech giant was actually among the few smartphone makers that witnessed growth during covid. As per data from the International Data Corp, Apple gained a 48.8% market share in the premium segment in the June quarter, up from 41.2% in the year-ago period. Analysts said strong sales of iPhone SE (2020) and supply issues faced by competitors, such as OnePlus, helped Apple’s cause. Mint reported earlier that Apple’s shipments grew by 5% year-on-year during Q1. The company will also will open an online retail store for India from 23 September.
Has Apple suffered any blow on account of covid?
Despite the revenue and sales growth, the pandemic has impacted Apple to an extent. While Apple usually launches a new iPhone every September, it has been delayed this time around. Instead, it held the first virtual product announcement this week of two new Apple Watches and iPads. The company also had to shut many stores globally due to covid-led curbs.
How have tech giant’s strategies evolved?
Even as Apple continues to make hardware, the company’s focus has firmly shifted towards services. Future revenues will come from products such as Apple Music and Apple TV+. In fact, it announced a Fitness+ service in the overseas markets, this week itself, and has bundled offers for different services under Apple One. While iPhones remain its most important product, experts said over-the-top (OTT) and other subscription-based offerings could be the best way to monetize the millions of iPhone users around the world.
Is Apple facing any key challenges right now?
While it seems all hunky-dory from sales and revenue standpoint, Apple might face challenges by way of regulations and lawsuits soon. The company is facing antitrust allegations from Spotify and Epic Games for its App Store policies, specifically on the restrictions it puts on in-app payments. Many, including fellow tech giant Facebook, have criticized Apple for such policies. Things seem to be coming to a head, with a US Congress antitrust committee calling Cook for a hearing recently, with other CEOs.