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Slowing iPhone Sales a ‘Wakeup Call’ for the Smartphone Industry

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The sales of iPhones have weakened as was reported by Apple Inc in a disconcerting news and there is a more sobering truth behind this.

The industry of technology has reached its peak point that is the saturation point at which all those who can actually afford a phone already has one and there aren’t any such breakthroughs which might compel them so as to purchase new phones in order to upgrade it at a frequency at which they did once.

So in order to keep up their profits, some of the manufacturers have boosted the prices of the smartphones of their companies. However, the shortfall of the Apple highlights the limits which that strategy entails.

The recent announcement of Apple

Apple Inc has recently announced that the demand for its products, iPhones is declining and this will thus impact the revenue of the last quarter of the year 2018.

The revenue is expected to decrease far below than what was projected and the reason behind this has been traced mainly to China.

Charts showing market share of top 5 selling vendors in China

Source: Cloud Front Net

When the news was released by the company, the share prices of Apple experienced a drop of 10 percent which accounted to the worst loss of the company ever since 2013.

The market value of the company did a nosedive thereby shedding $74.6 billion. This shed off was amidst a very broad sell-off among-st the companies of technology which have also suffered their worst losses in the past seven years.

An analyst’s perception

An analyst of the research firm Wedbush Securities, Dan Ives has stated that this news by Apple is actually a wake-up call for the entire industry.

Ives has also stated that Demand has declined not only for Apple but has been lackluster across the entire industry.

The leading seller of smartphones, Samsung has been harder in which the shipments of its phones a decline of 8 percent in a year or 12 months which had ended in September of 2018.

The Smartphone industry was once on fire

Source: Ewaste 1

Ives had said that the industry of smartphone is now experiencing headwinds which are significant.

He personified the makers of smartphone as teenagers and said that the industry was on fire then. He further added that as of now the makers of smartphones are like the senior citizens who are in terms of maturity.

The story behind

In the early 2010s, the innovations in technology in the phones had grown in leaps and bounds.

This was with respect to dynamic changes as well as improvements in the size of the screen, the resolution of the screen, the life of the battery along with the cameras and the speed of the processor. Moreover, these changes took place on a yearly basis.

Not much innovation in the new launches

Source: Investors

Now, the industry has become a victim of its own success. In 2014 or around the innovation started to slow down. However, the Apple once boosted the size of the screen with its models of iPhone 6 as well as 6 Plus.

The new features in the phones had tended to be incremental while the phones were also improving.

The perfect example to this is the new flash technology which was introduced to the cameras of the phones which were already excellent. These are the things which go unnoticed by the consumers.

Ives has stated that after iPhone 6, one can see that so as to raise the bar the innovation part has been really difficult for the company.

Source: Live Mint, Detroit News

Ketakee Srivastava
I am an amateur content writer, who is currently pursuing a Masters in Finance from ICFAI Business School. In this highly volatile Business Market, I find no better way to keep myself updated than to write about it and reflect my own thoughts as words.

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