Apple fans keep moaning about the lack of innovation every time a new iPhone is launched, the upgrades in features a minimal and usually arrive later than Androids, while the price of the phones keep going up every year.
But these issues does not seem to affect the sales of the iPhones at all, in fact the opposite is happening, the Cupertino based tech company has announced the best ever financial results for its 2019 last quarter recording revenue of $91.8 billion, from an increase of 9 percent from the year-ago with an all-time record. Its international sales accounted for 61 percent of the quarter’s revenue. TimCook, CEO Apple credited the success to the iPhone 11 and iPhone 11 Pro, record performance from services and its AppleWatch sales.
So the question is who is buying the RM5000 phones and why? Apple is already a 1 trillion dollar company, the first tech company to do so, there are 100 year old company’s on Nasdaq that could not reach such feat, but Apple has despite making products only to a selected fan base. Some say the reason people are lapping up everything Apple dishes out is basically down to impulse, the clever marketing, minimalist ad campaigns and keeping the price tag at a premium keeps Apple products in the desire category. Just like Ferrari cars, they are limited in production, even if you have the money you will have to wait 1 to 2 years to get them and are always in demand.
As long as the company keeps the ecosystem of its services closed, no competition can pose a threat, it just does not sell another smartphone, it sells a lifestyle, so it claims. Samsung was the closest in taking on the American giant, but failed with numerous faux pas and besides the Android mobile OS is open source, even a RM200 phone operates on it.
In summary, the gravy train is not going to stop any time soon, new iPhone’s will be coming out later this year and we don’t expect any new innovation or mind blowing features, just another vanilla edition with possibly a 5G modem. Sales again will be above expectation, as millions of users who skipped the iPhone 11 will be refreshing their units, and those who want to experience 5G speeds on the phones will also be switching over. Apple fans have come to accept mediocrity, with Huawei and Samsung far behind in the desirability bracket, the target for Cupertino will be to become a 2 trillion dollar company.