“Apple stock is under considerable selling pressure lately. Shares of the tech juggernaut are down by more than 28% in the last year due to falling revenue in the very-important iPhone segment,” Andrés Cardenal writes for The Motley Fool. “However, CEO Tim Cook believes that the decline in iPhone sales is only a short-term problem.”
“Mr. Cook has some strong arguments to believe that the iPhone will continue growing in the future,” Cardenal writes. “Here are his own words, from Apple’s last earnings conference call: ‘iPhone sales come from three sources: Customers who upgrade from previous iPhone models, customers who switch from Android and other operating systems, and customers who purchase a smartphone for the first time. As we look at each of these three sources of iPhone sales, we see a business that is healthy and strong.'”
“According to IDC numbers, Apple has a global market share of 15.2%, while a huge 82.6% of all smartphones around the world work with Android,” Cardenal writes. ” Tim Cook said in the last conference call that Apple is attracting record amounts of switchers from Android and other platforms, and this could be an interesting growth driver going forward… [Also] growing smartphone penetration should generate considerable opportunities for expansion in key emerging markets such as India.”
Read more in the full article here.
MacDailyNews Take: The future for iPhone is exceedingly bright and new markets open up, 4G coverage spreads, and those who’ve settled for insecure, inferior pretend iPhones realize the error of their ways and graduate to real iPhones.
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