Apple’s Q3 2023 earnings call reported that its iPhone division generated $39.67 billion for the three-month period, but that amount was 2 percent lower compared to the same quarter a year ago. While that is still an abnormally large chunk of change, it represents a trend that even the technology giant has noticed and has no choice but to admit; the U.S. smartphone market has been in decline, and it has been this way for a while. Naturally, this will prompt the firm to reduce its dependency on its biggest cash cow, but that is easier said than done.
Apple’s admission of the U.S. smartphone market comes just weeks before the iPhone 15 launch, which is said to arrive with more exclusive features
For those unaware, the U.S. smartphone market is Apple’s main focus because the majority of the revenue for the company comes from this region. With this realization, the company will likely execute a change in strategy that involves either improving its other revenue-generating segments or expanding heavily in other markets other than the U.S. In Mark Gurman’s ‘Power On’ newsletter, the Bloomberg reporter states that the decline of the U.S. smartphone market presents a challenge for the iPhone 15 series, which is said to arrive with multiple exclusive features, particularly the ‘Pro’ models.
“After reporting sluggish iPhone sales on Thursday, sending Apple stock sliding, the company disclosed that “the smartphone market has been in a decline for the last couple of quarters in the United States.”
That presents a challenge for the next iPhone, which promises to be the biggest update to the device in three years. When Apple rolls out major phone overhauls — like it did with the iPhone 6 in 2014, iPhone X in 2017 and iPhone 12 in 2020 — the new features usually sell themselves. In those earlier examples, the company kicked off major upgrade cycles by offering bigger screens, revamped designs (with no home button in the case of the X model) and 5G connections.”
Fortunately, Apple’s holiday quarter is around the corner, and assuming that the company does not run into the same production problems that plagued the iPhone 14 Pro and iPhone 14 Pro Max shipments last year, its Q4 2023 earnings call might issue some favorable news for the Cupertino giant. However, it should be noted that the iPhone 15 Pro and iPhone 15 Pro Max are rumored to receive a price hike later this year, as that is what customers have to pay to experience the latest and greatest from the company.
In the U.S., the iPhone 15 Pro may start from $1,099 for the base model instead of $999, and this change might impact shipments later on. Fortunately, there is a sliver of hope, as, during the Q3 2023 earnings call, Apple reported that its ‘Services’ business made $21.21 billion in revenue, making it 26 percent of the firm’s $81.8 billion total, so a small chunk of its focus could be diverted there. The iPhone 15 launch is said to take place in the middle of September, so we will know in a few months on how Apple performed.
Refference- https://wccftech.com
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