Saturday , January 16 2021

Apple is a big problem that the consumer suffers from suffering



Apple-iPhone Xs
Photo: Apple

If the brand is large brand awareness on the market Apple, Devices made by Cupertino California are usually the best-selling and most desirable item in the world.

This has given him the opportunity to invest himself the world's most valuable brand with a brand value of $ 200 billion, while Google has 155 thousand 500 million dollars, the first and the second Interbrand's Best Brands 2018.

However, only a few weeks after the capital injection reached a billion dollars, Apple does not go through the best moments.

It happens that, despite the fact that reporting revenue was over 37,000 to 200 million dollars in the last quarter, technology has clear signs of encountering a serious problem and the bad thing is that everything shows that consumers are suffering from suffering.

The iPhone has reached its breakpoint

The existence of the decade, iPhone has become itself one smartphone the most sold – sometimes sold most in the second quarter of 2018. however Over the last two years, she is facing her competitors, especially Samsung and Huawei.

Why? During Apple's fourth fiscal year, iPhone has about 60 percent of the company's revenue 37 thousand 185 million dollars, 62 thousand 900 million reported.

It looks great, the problem is that it sold around 46.9 million units between July and September, 0.5 percent more than in the corresponding period but last year. The practice followed by developments in April and June, where it sold less equipment.

To this is added that his report reduced sales expectations at the end of the year during the holiday season. This has been interpreted as a negative sign of analysts, and even though the California company announced higher revenues, its market share declined by about 10 percent on Wall Street.

Actually, Apple has already lost a trillion dollar sign on the New York Stock Exchange, currently it is invested in the market value of the stock market $ 984.19 billion.

Samsung's volume and Huawei threat

One of the companies run by Tim Cook is the disadvantage has emphasized that it is not an innovative brand which has characterized it for many years and that It's been left behind by its major competitors: Samsung and Huawei.

On the other hand, a South Korean company can not sell Galaxy S9, S9 + and Note 9 you want to These devices are innovative on the screen and processor.

It also supports the sale of many medium and small-sized smartphones that will allow it to retain the first market share general; 72.2 million units sold in the third quarter (20.3% of the market).

A bad thing for both Samsung and Apple is it Huawei threatens not to cease growing. The Chinese brand has established itself as the second-largest salesman in Cupertino 52 million smartphones in July-September.

The worst thing is that analysts emphasize that it sells high quality devices – not just average and low – both P20, P20 Pro and Mate 10 (replaced by Mate 20 Pro) they report on a very healthy sale.

The key is that they have emerged as innovative devices; its Leica cameras, screen, processor and artificial intelligence are distinguished. The Chinese brand does not lose the opportunity to let its competitors know that it is exploiting.

The consumer's problem

Data show that at least this year, The brisk growth of the iPhone is running out and in fact, who still represents more than half of Apple's revenue has already become a serious problem.

This is because the way to replace this does not sell as many devices as their competitors, has been maintaining a strategy that the cost of iPhone will increase significantly at the final price for the consumer. From iPhone X a thousand dollar barrier and Xs, Xs max it repeats itself.

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

then, Apple's strategy is to charge more for its products, so analysts expect the following iPhone and iPad models to become more expensive for consumers, all in order to attract investors an increasing number of sales.

This is reflected in the recent decision made by Tim Cook for investors apple goes to report quarterly sales of iPhones, iPads, and Macs.

We do not know whether this strategy will work for Apple, at least at the moment the market has not got it well because of the uncertainty of the company. In addition, the consumer has to pay higher prices. The question is how much they oppose?

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