Apple is to release a new smartphone soon
Apple Inc. (AAPL) gets more than half its revenue from selling iPhone smartphones. The fact that these smartphones are much more popular than the leading competitors is good news for the manufacturer. In September, Apple will introduce a new version of its popular smartphone – the iPhone 14. Sales are to begin in the fall. The new product may become super popular and give Apple strong sales in the pre-holiday quarter. According to research company IDC, global smartphone shipments declined by 8.9% in the first quarter of 2022 and another 8.7% in the second quarter.
However, iPhones do not follow this trend: Apple has seen an increase in smartphone shipments in both quarters. Sales grew by 2.2% in the first quarter and another 0.5% year-on-year in the second quarter. According to Wedbush analysts, one of the reasons for the growth in iPhone sales is a large user base that is in the process of updating equipment. Experts have estimated that as of July 2022, about 240 million iPhone users have not updated their devices for three and a half years;
which means that a significant part of Apple’s hardware base of 1 billion iPhones does not yet support 5G since, for the first time, a smartphone with support for a new generation network appeared only in 2020.
As 5G continues to expand its geography, there will be more and more people who want to buy a new iPhone. The fact that iPhone sales are growing against a general decline in smartphone sales may indicate that Apple is taking away part of the market from its competitors. The company’s management confirmed that it managed to attract a record number of users who switched to iOS from other operating systems in the past quarter. One of the reasons is again 5G. Despite the high price, phones with support for this standard were able to attract many users, including in the markets of India, Indonesia, and Vietnam. According to Statista, 5G smartphones accounted for 43% of global shipments of flagship smartphones. This share to grow to 69% by 2023. That is why Apple is optimistic about the sales of its new iPhones.
