Apple's record iPhone 12 sales reveal why it dominates the smartphone world
Apple tree'due south record iPhone 12 sales reveal why it dominates the smartphone world
It seems similar getting a belatedly showtime to iPhone 12 sales didn't hurt Apple during the holiday season. Announcing its earnings for the December 2020 quarter Midweek (Jan. 27), Apple reported record sales of $111.iv billion, a 21% increase over the previous year and well alee of Wall Street expectations.
All of the products in Apple's lineup contributed to that operation — the visitor reported double-digit growth in all its segments. Merely the real standout was Apple'south phone sales, fueled by the release of iv new iPhone 12 models during the quarter.
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For the three months ended Dec. 26, Apple took in more than iPhone sales than at any point in its history — a little less than $65.6 billion. That's a 17% jump from what Apple did in the last 3 months of 2019. Back then, Apple needed potent sales from Apple Watches, AirPods and services to aid it relish a very merry Christmas.
"Certainly, iPhone was one of the major factors why we exceeded our own internal expectations at the beginning of the quarter," Apple chief financial officer Luca Maestri told Wall Street analysts when announcing Apple's quarterly numbers.
iPhone 12 sales: More than just 5G
Apple's large quarter came subsequently the coronavirus pandemic had hampered the company's ability to even get the iPhone out the door. Ordinarily, the company rolls out its new iPhones starting in September. Just product delays prevented Apple from unveiling the iPhone 12 until October. Fifty-fifty then, it launched the new phones in a staggered release — outset the iPhone 12 and iPhone 12 Pro shipped, followed past the iPhone 12 mini and iPhone 12 Pro Max.
Some of Apple tree'south success can exist attributed to pent-upwards need, specially for a 5G iPhone. All four new phones were the offset Apple devices to support 5G, working with a variety of 5G bands. Consider Cathay, a country where there'southward a lot of demand for 5G phones. Apple'southward sales rose 56% during the simply-completed quarter.
But there'due south a larger message to take away from Apple'southward strong iPhone 12 sales, one that may furrow brows at rival phone makers looking to bit away at its concern. Apple seems to have figured out how to develop and marketplace phones that address what people are looking for.
How Apple develops iPhones
We enquire ourselves if this is a product that we would want to utilize ourselves or a service that we would want to use ourselves. And that's a pretty high bar.
— Tim Cook
That seems obvious, I'll admit. Just you'd have to concede that Apple seems to stick to that philosophy improve than a lot of other phone makers. Rivals seem to tack features onto its devices just to evidence there's something new.
"We ask ourselves if this is a product that we would want to use ourselves or a service that nosotros would want to use ourselves," CEO Tim Cook said during a phone call with analysts to discuss Apple's quarterly performance. "And that'due south a pretty high bar."
Cook said that in response to an analyst question near how Apple evaluates new businesses to jump into. But you don't have to strain too difficult to see how information technology applies to the iPhone and the features that Apple tree has added with the iPhone 12, such equally photographic camera refinements, improved durability and super-fast performance. Apple knows that those are the kinds of things its customers want because it wants it too.
Yous as well can't overlook Apple's decision to release four dissimilar models of the iPhone 12. It allowed the company to offering new phones at a wide range of prices. The iPhone 12 mini started at $699, with prices scaling up to $one,099 for the iPhone 12 Pro Max. Somewhere in that $400 spread, in that location was likely a cost shoppers could live with. (And if not, well, that'southward why the $599 iPhone 11, $499 iPhone XR and $399 iPhone SE are part of the lineup, also.)
Telephone makers ultimately come to its ain decisions, just yous can't convince me that Apple tree's iPhone 12 pricing hasn't had an influence on some of its rivals. It is probably not a coincidence that the contempo Galaxy S21 lineup is $200 less than what information technology was charging a year prior. Although, the reception for the Milky way S20 probably played a large part in that, too.
A different iPhone for different needs
It'south non just the prices on each iPhone 12 model, though — it'southward that each one serves a singled-out purpose. The iPhone 12 Pro models, for example, have different cameras and utilise dissimilar materials than the less expensive iPhone 12 and iPhone 12 mini. The iPhone 12 Pro Max, in item, not only appeals to people who similar the biggest screen possible, but besides anyone who puts a premium on the mobile photography thanks to its larger main sensor.
As for the iPhone 12, it's targeted as the phone to appeal to a wider audition, while the mini is establishing itself every bit a device for fans of compact phones.
"Nosotros take a fantastic product lineup and we know that, and information technology's been fantastic to see the customer response for the 4 new models, particularly the pro models," Maestri said.
It's an approach other phone makers who gyre out multiple models would practice well to copy. OnePlus, for case, has done a pretty skilful job differentiating its principal flagships from its new upkeep-minded Nord lineup. Granted, with different OnePlus Nords bachelor, that segment is getting cluttered.
In contrast, this is something Samsung seems to struggle with. While the Milky way S21 Ultra has a singled-out entreatment, if only because Samsung managed to pack every feature imaginable into it, there doesn't seem to be much difference between the Galaxy S21 and S21 Plus. And if yous tin can tell me how the Galaxy S lineup differs from the Galaxy Note, specially now that both accept Southward Pen support, you're a smarter cookie than I.
Even more worrying for Apple's competitors is that the company seems to exist applying its aforementioned know-how with phones to its other business organisation. Take the wearables segment — it not merely saw record growth during the holidays, but its audio, lookout man, and smart speaker sub-segments all tallied record revenues, also. Services turned in an all-fourth dimension tape in revenue, while the Mac segment, buoyed by the arrival of Apple's own M1 chip, saw its all-time sales for the December quarter.
In curt, while Apple tree may stumble every now and again, I wouldn't await the company's potency in the smartphone world to ease up any time soon. Apple tree has showed once once again that it's got a pretty proficient thought of what it'due south doing.
Source: https://www.tomsguide.com/news/apples-record-iphone-12-sales-reveal-why-it-dominates-the-smartphone-world
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