“The more iPhones Apple manages to get into users’ hands, the more revenues it can generate through its closed ecosystem – a benefit none of its rivals have,” Trefis Team writes. “We estimate that the introduction of a meaningfully cheaper iPhone variant could boost iPhone sales to 300 million a year (up from 232 million under the base case scenario).”
“While cheaper iPhones will have a negative impact on Apple’s margins, we believe that this decline will be more than made up for by revenue gains from Apple Services, which is a high-margin revenue stream, as well as from the sale of other hardware and accessories (like the recently launched HomePod), which have margins in excess of 30%,” Trefis Team writes. “Accordingly, we expect the overall margin to improve to 23% (from 21.6% under the base case scenario).”
Much more in the full article here.
MacDailyNews Take: With iPod, Apple dove down market great success. With iPhone SE, the company is sort of dipping a toe into the water, perhaps rightly so as iPhone already takes more revenue than all other makers combined and dominates in profit share.
After all, how many HomePods, AirPods, Apple Watches, Apple Music subscriptions, etc. would Apple really sell to the type of customer who’s looking for a cheap iPhone?
With the Mac, iPhone, iPad, and Apple Watch, Apple has proven that cornering the market on quality customers, those with disposable income and the will to spend it, trumps amassing the most users.
Android is, as it ever was, the poor man’s iPhone. Apple takes the grain and leaves the also-rans with the chaff. — MacDailyNews, February 7, 2018
iPhone X drives smartphone revenue dominance; Apple made more money in Q417 than the rest of the smartphone makers combined – February 16, 2018
Apple iPhone took more than half of worldwide smartphone revenue share in Q417, a new record – February 15, 2018
Apple utterly dominates the premium smartphone market in China with 85% share – February 7, 2018
Apple leads in Indian premium smartphone market share, capturing 47% share in Q417 – January 31, 2018
Apple App Store users spent nearly double that of Google Play users in Q417 – January 26, 2018
Apple’s iOS continues to attract content apps first, despite smaller unit share – October 30, 2017
Strategy Analytics: Apple has shipped 1.2 billion iPhones in the past 10 years; $760 billion in global revenue to date – September 8, 2017
Bernstein: Google to pay Apple $3 billion this year to remain the default search engine on iPhones and iPads – August 14, 2017
Apple took 83% of smartphone market profits in calendar first quarter – May 16, 2017
How important is Apple’s iPhone market share? – May 29, 2017
Higher income U.S. states use Apple iPhones; lower income states use Samsung Galaxy phones – September 27, 2016
iOS users are worth 10X more than those who settle for Android – July 27, 2016
Apple’s App Store revenue nearly double that of Google’s Android – April 20, 2016
Poor man’s iPhone: Android on the decline – February 26, 2015
Study: iPhone users are smarter and richer than those who settle for Android phones – January 22, 2015
Why Android users can’t have the nicest things – January 5, 2015
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013
iPhone users smarter, richer than Android phone users – August 16, 2011