Has Apple stagnated? In just a month the company has lost around 200 billion in capitalization. Although it is not something to write home about, it certainly generates tension on the market. A few days ago Apple stated that it would stop releasing sale figures, or at least the exact figures of units sold. So, we will not be told how many iPhone have been sold. Instead, the company will disclose revenue and other relevant information to investors and the market. The latest market share figures shed a light on the polemic decision.
The guys at MovilZona have Apple’s exact unit sales data in the last few years. The change can be seen there. In Q4, the Cupertino-based company sold 46.9 million iPhones in contrast to last year’s 46.7 million. The variation is small and it points to stagnation. However, revenue increased around 29%. Apple’s ability to increase iPhone sales is failing while revenue is soaring. Selling units worldwide is getting complicated, but prices have gone up considerably.
Apple’s dip in sales is due to Europe despite revenue growth: the numbers hurt the Cupertino-based company
Europa makes it difficult for Apple to grow
Right now, sale figures seem to be the only element slowing Apple’s growth in Wall Street. Revenue is growing amazingly but sales are not, as we were saying. The latest market share figures published by Kantar show that Apple’s share fell 3.4% in France, 2.6% in Italy and 4.1 in Spain. In the UK, the company took a minor hit, just 0.3%, whereas it grew 0.5% in Germany.
As for the entire European market, Apple’s share fell 1.6% in contrast to last year, leaving the company with 17.3% of the market share after having 19%. Android’s share is now 82% in contrast to last year’s 79.9%. Android grew 2.3% and Windows clearly shrunk 0.5%. Other OS fell 0.1%, which means they now have only 0.1% of the market share.
Apple grows thanks to the US and China
The Cupertino-based company grew 1.6% and 5% in China and the US, respectively, although it still is far behind Android. In China, Apple’s market share is 18.9% while Android’s is 80.8%. In the US, Apple’s share grew to 39.7% while Android has 60.1% of the market share. Apple still has a major growth margin in China. However, according to Kantar’s data, the yearly evolution is flat.
Is this the reason why Apple wants to “hide” its sale figures?
The fact that people in Wall Street think Apple has stagnated is bad for the Cupertino-based company. To prevent this from becoming a reality, revenue and profit figures are the company’s best ally. Given Apple’s trend in that past few months, unit sale figures can only damage the company’s capitalization. What the company might not have expected is that the lack of transparency might prompt mistrust from the market. As of now, announcing the removal of unit sale figures from the reports has not been well received.
It is evident Apple is doing well, but it is a company that cannot see itself as others do. Apple is the most valuable company in the world, so every figure and decision is put under the microscope. The iPhone is still Apple’s best product. However, given the situation and the iPad’s setback in terms of global sale figures, we are inclined to think that Apple should “open up.”
New products to get out of the “stagnant” position Apple is in according to Wall Street
We have already seen Apple launching new products and raising the iPhone’s price in order to increase its sales, revenue and profit. The Apple AirPods and the Apple HomePod are good examples. Refurbishing some of its old desktop computers and laptops is another important sign. The arrival of a “third iPhone” such as the iPhone XR is also good. Besides, we all know that the Cupertino-based company has been toying with the idea of VR and automation for quite some time.
Although it is yet to launch products in these sectors, Apple is already developing self-driving technologies with Lexus, and is in talks with other manufacturers. The company has also applied to patent a wide range of VR-related technologies and its own VR headset. Although the iPhone is still the company’s best product, wanting to hide sale figures clearly makes us think that the Cupertino-based company also has to focus on other products and services.