Wednesday , July 6 2022

Apple's big problem that the consumer will end up suffering


Apple-iPhone Xs
Image: Apple

If the mark is big brand awareness the market they must Apple, Devices made by Cupertino, California are mostly the world's most sold and attractive item for many.

This allowed him to stand up like the most valuable brand in the world, currently worth $ 200 billion, while Google is 155 thousand 500 million dollars, first and second place The world's best brands of Interbrand 2018.

However, just a few weeks after the $ 1 trillion in stock exchange capitalization, Apple is not going through its best moment.

It happens that despite the revenues of more than 37 thousand 200 million dollars during the fourth quarter, the technological situation shows clear signs of facing a serious problem, and the bad thing is that everything suggests that consumers end up suffering.

The iPhone reaches its break point

During the decade of existence, The iPhone has positioned itself as one of them smartphone best sellers – sometimes best-selling as in the second quarter of 2018 -. However, in the last two years it suffers from its competitors, especially against Samsung and Huawei.

Why? During the fourth fiscal quarter of Apple, iPhone accounted for roughly 60 percent of the company's revenue 37 thousand $ 185 million, from 62 thousand 900 million.

It shows a spectacular number, the problem is that it sold approximately 46.9 million devices from July to September, About 0.5 percent more than in the same period, but last year. Behavior that tracks the trend of April and June when it sold even less equipment.

This is added to that in your report reduced sales expectations at the end of the year, during the holidaysThis was interpreted as a negative sign of the analyst and, although the California firm posted higher revenues, its market share fell about 10 percent on Wall Street.

Actually, Apple has already lost a trillion dollar on the New York Stock Exchange, is currently capitalized on the stock market $ 984.19 billion.

The volume of Samsung and the threat of Huawei

One of the drawbacks for Tim Cook's firm is that it was emphasized that it is not an innovative brand which characterize it for many years and that It lags behind major competitors: Samsung and Huawei.

On the one hand, the South Korean company may not sell the amount Galaxy S9, S9 + and Note 9 but you want These devices are innovative in terms of screen and processor.

In addition, it has the advantage of selling many mid-range and low-range smart phones, which allows it to keep its first position market share global in the third quarter it sold 72.2 million devices (20.3 percent of the market).

The bad thing for Samsung and Apple is that Huawei threatens to stop growing. The Chinese brand has settled second in sales, surpassing Cupertina's retailers 52 million smartphones from July to September.

The worst thing is that analysts point out that it sells top-notch devices – not only average and low – both P20, P20 Pro and Mate 10 (replaced by Mate 20 Pro) they have very healthy sales.

The key is that they have leveled off as an innovative device; Leica cameras, display, processor and presence of artificial intelligence. And the Chinese brand does not lose the opportunity to let its competitors know they are benefiting.

The problem the consumer pays

The data show that at least this year, The dizzying iPhone is coming to an end and in fact one that continues to account for more than half of Apple's revenue is becoming a serious problem.

This is because a way to compensate for not selling as many devices as their rivals, was to maintain the strategy to significantly increase the cost of iPhone at final consumer prices. FROM iPhone X a thousand dollars barrier Xs, Xs max it repeats.

In fact, it is a strategy that replicates in the new iPad Pro and Mac that in fact they are two divisions that not only grow but lose vitality; In the last quarter they fell by 2% and 6%.

So, Apple's strategy is to charge more for its products, so analysts expect the following iPhone and iPad models to be even more expensive for consumers, all this in order to further attract investors' attention to the growing number of sales.

This is reflected in the recent decision Tim Cook announced to investors Apple will leave report the amount of iPhones, iPads, and Macs that are sold every quarter.

We do not know if this strategy will work for Apple, at least until the markets have gotten well, as there is uncertainty about the company. In addition, it is the consumer who ultimately pays for having to pay ever higher prices. The question is, how much will it resist?


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