Apple Holds Its Ground, Even If Smartphone Sales Decline
The demand for smartphones may fluctuate, but Apple still manages to go steady with its iPhone, iPad and Mac computers. The recent sales figures of several leading smartphone companies have shown a decline in the demand for smartphones but Apple is still holding its place pretty strong.
According to the analysts of Wall Street, the sale of $US49 billion worth iPhones, iPads and Macbooks along with other Apple products in the last quarter, will record profit of a whopping $US10.3 billion ($AU13.97 billion). This shows a 30 percent increase in both revenue and profit from the same quarter last year.
The sales figure for the newly launched Apple watch would not be released and the analysts believe that the demand for the gadget has fallen considerably since it was released 3 months ago. The analysts expect Apple to procure a huge benefit from its recently released iPhone 6 and iPhone 6 Plus.
There are many reasons that led to the immense popularity of these two versions of iPhones. Even if iPhones are more expensive than most Androids and other smartphones, they are still considered very much profitable. News.com reports, that Canaccord Genuity analyst Michael Walkley estimates that during the first three months of 2015, Apple reaped 92 percent of the $US16.6 billion in operating profit generated from smartphones by companies around the world. According to Mr. Walkley, though Samsung sold more phones in that quarter, Apple walked away with more profit as iPhones are much more expensive than most Samsung handsets.
Of the total sales volume of smartphones in the first quarter of 2015, Apple has sold 18.2 percent while Samsung managed to sell 24.5 percent. But the profit margin for Samsung is likely to fall further in the next quarter as the sales for Galaxy S6; the newest launch by Samsung has dropped considerably. HTC too has recorded poor sales for the quarter due to unimpressive trading in the Chinese markets and a decline in the demand for the high end smartphones.
Contact the writer on debleenasarkar26@gmail.com
