How IPhone Killing Apple
We don't think that you aren't aware of Apple if you're reading this article. Apple is the biggest tech company and the #1 company in terms of its market cap and revenue. Recently, Apple became the world's most grossing private company and surpassed the figure of 2$ trillion net income.
If you know about Apple, then you may know about iPhone. It's also the product that made Apple famous in revenue and market cap. However, did you know that the iPhone is also the one that is killing Apple? Yes, that's true; how? This article has written a complete case study on Apple, their future projects, and how the iPhone is killing Apple. Continue reading the article:
Apple | Short Introduction
If you don't know about Apple, it's a US-based tech brand that mainly develops smartphones, laptops, earphones, smartwatches, software, and other communication technology products.
Their market cap is worth 3$ trillion, making it the world's biggest private company and the #1 company in terms of net revenue, sales, and share value. Their most popular product is their iPhone, a smartphone line-up series by Apple. According to Statista, the iPhone series covers 23.4% of the smartphone share market on 10 February 2022.
The iPhone has been one of the most selling products of Apple, or you can say, the iPhone is the reason that has made Apple where it's standing right now. But, that was true for Apple till 2018. The line "Apple's golden fruit is iPhone" no longer exists if we look at the statistics of iPhone sales and profit in ratio to the budget Apple spent on the iPhone. In simple words, the iPhone is killing Apple.
How is the iPhone killing Apple?
Here are some proofs which show that iPhone is no longer the most profitable product for Apple:
If we look at the sales of the iPhone, you'll see a significant drop compared with the sales of 2018. To be precise, according to a report by Statista, the sales of iPhone have dropped to about 50% in the Q3 of 2021, if compared with sales of iPhone in the Q3 of 2018.
This graph clearly shows that Apple is struggling with its sales of the iPhone. With a decrease in sales of about 48%, it's a significant drop for a 3$ trillion company.
The reasons why this is happening with Apple are simple, and you already know it.
Reasons Why The Sales of iPhone are Decreasing
Here’re the reasons:
Since the iPhone X series launch, there's no innovation by Apple in their iPhone line-ups. They've not used any invention since the launch of the iPhone X. Apple keeps repeating the same design concept, same notch, same screen quality, camera setup concept, and same technology concept in all of their 5 iPhone series.
On the other hand, Apple is increasing the prices of their iPhone on every new iPhone series while keeping the same old design and concept, and the result of this lousy strategy is in front of you in the graph.
There's no wonder that today, Android smartphones aren't less than the iPhone. Some newer models on Samsung and Xiaomi have better performance marks in Geekbench and other benchmarking software like Antutu. But, how are the low sales of iPhone? Here're the reasons:
More Innovation by Android Smartphone Manufacturers
Other smartphone manufacturers have offered more innovation than the iPhone for the past few years, while iPhone has provided few to no innovations.
- Vivo introduced the world's first water droplet notch design.
- Xiaomi introduced the world's first 33-W and 120-W super fast charging.
- Samson released their Galaxy S21 Ultra which had the world’s first Telephoto lens that can optically zone to 50X without losing the picture quality.
- Oppo introduced the world's thinnest smartphone without losing the battery capacity, features, and camera module.
And iPhone? None. There's no innovation in the iPhone. All they do is either put a new camera or reduce the notch to 20% in their iPhones.
Today, smartphone customers are clever. They know which brand is giving them more features and which is just a status symbol only.
Value for Money Smartphones by Android Manufacturers
There's no wonder that if you want a value for money deal and more features at a lower cost, Android is your option. As of 2022, purchasing an iPhone is no longer a value for money or worth buying option. Paying 1100$, and still, you're getting a big traditional notch, 20-W regular charging, same old-camera setup, same old styles design, and no charger in the box, but a 60% increase in the price. That's not a value for money deal.
On the other hand, Android manufacturers offer 120-W charging, 2K display, upgraded camera setup, 120-W or at least 65-W charger in the box, Dolby audio, a much bigger battery than before, no notch camera, and UFS storage, all at a much lower price than iPhone. This focuses on those buyers who want a value for money deal and have a low budget.
Android has Got Better than iOS.
If you look at the latest Android: Android 12, it's much better than iOS in many factors. Unlike 2016 -2018, when iOS was genuinely better than Android in terms of security and animations, this line doesn't suit the latest version of Android.
In terms of security, animations, and features, Android has got better or at least equal to iOS. We can no longer say that iOS is better than Android in security. The Android 12 comes with a camera and microphone pop-up notification, and the OS automatically removes the permissions from the new application. Many other security things in Android make it better or equal to iOS.
All these factors are causing the drop in the sales of the iPhones.
What is Apple Doing To Recover from Dropped Sales in iPhone?
Did you think that Apple is going in loss due to the dropped sales in the iPhone? Nope, Apple is still one of the most grossing companies globally, with a 23% boost in net worth since 2018. They are not at a loss. How? Here're some strategies that Apple is using:
Apple is Getting Involved in SaaS
For the past few years, Apple has been vetting its hands-on SaaS services and getting involved in multiple SaaS projects. You can see that Apple is no longer only a Hardware company. Today, Apple is also recognized as a software company.
Apple is offering streaming services: Apple TV
Music services: Apple Music.
Payment solution: Apple Pay.
App Market: App Store.
Cloud storage: iCloud
Maps and navigation: iMaps,
And many more.
All these things are making Apple a SaaS service company that adds considerable revenue to Apple's pocket.
To be precise, Apple's 33% of revenue comes from its SaaS services and subscriptions.
Expanding of Hardware
If you notice the business of Apple, they've introduced many hardware products from 2018-to 2022. These hardware products also added considerable revenue to Apple's pocket and played a crucial role in making Apple a $ 3 trillion market cap company.
- Wireless earbuds.
- Apple M1 chip.
- Apple cleaning cloth
- Dedicated Apple chargers
- Thunderbolt devices
- Apple watch
- Apple TV
- Apple Tag
- Apple Homepod
- Airpods Max
Apple launched all these hardware products between 2018-2022. This proves that Apple is trying very hard to broaden its hardware products and gain more audience.
Apple is shifting its business from an iPhone-based company to a full-fledged tech company that offers smartphones and SaaS services and other tech hardware products.
This part is unverified, and there's no official evidence. If you want, you can skip it, as there's no official evidence by Apple for it.
Car Project of Apple
It seems like Apple will launch its self-driven electric car by 2025-2030. Apple's car will be the decade's most advanced and highly advanced.
According to experts and analysts, the world's biggest tech company, launching their electric car, it'll be the world's most advanced and high-tech car that we would have ever seen or expected.
If this is true, then Apple will earn a lot of revenue from their Automobile section. It's because the Automobile industry offers the highest amount of profit % in the lowest amount of time + earns you loyal and returning buyers.
Meta Verse of Apple
According to some experts and analysts, Apple is investing a lot of money for its upcoming Metaverse project. However, this Metaverse will likely be exclusive to Apple users, e.g., iPhone, iMac, and iPad users.
And if this happens, Apple will surely take the edge because of its large user base. Additionally, the Metaverse projects will also bind the users to stay within the Apple environment, increasing Apple's revenue in the long term.
According to 3rd party experts and analysts, Apple is investing in their Metaverse and Car project, likely launching in 2025-2030. However, this was just a prediction, and there's no official evidence by Apple as of August 2022.
While making this case study I have used several business strategic techniques, and I have learned them after reading and listening to several books in audiable.com, Audiable.com is a great platform for book lovers and knowledge seekers. Click here to access unlimited number of podcasts, Audiobooks and more from anywhere, streaming and download to listen offline as well. Free 30 days trial.