Apple had been the global leader in phone manufactures, however in the past couple of months the sales have been gradually declining. For the first time in nine months Apple has finally reported a rise in sales due to the successful sales of the iPhone 7 during Christmas. The net sales were $78.4 billion from October-November 2016, and sales are up three percent on the previous year making this the most lucrative quarter Apple has recorded. Chief Executive Tim Cook said Apple had sold “more iPhones than ever before” with the iPhone 7 making up for about 17 percent of Apple’s overall phone sales.
Nearly every year or so, Apple releases a new iPhone. In the preceding three quarters, the company’s revenue was continuously falling as the phone industry was becoming more competitive. The reduction in iPhone sales accounted for two-thirds of income and ultimately resulted in Apple having to report a drop in annual revenue; Apple had not had a fall similar to this in 15 years.
Furthermore, as each new iPhone is created, each one surpasses its predecessor in capability and quality. This level of skill generates a challenge for Apple, because each year the consumer is wanting the phone to be bigger and better than the last by a significant mark. It is this confidence in Apple that leaves little leeway for the new products to fall short. In reference to the 10th anniversary of the iPhone and the new release for 2017, iPhone users are expecting this phone will be the best iPhone yet. Apple has anticipated that consumers will wait to upgrade their phones until the newest phone is announced. With this predicted delay of sale of phones, it is likely that a slight decline in sales might return once again.
In September 2016 the iPhone 7 was released and had enhanced features such as a new camera and headphone socket. While numerous customers were upset about the loss of the headphone socket, it did not seem to dramatically stop the sales of the iPhone. To accommodate customers, Apple created a “connector” that allows regular headphones to work with the iPhone 7. About a month ago, Apple also put their wireless “Apple Airpods” on the market. It is too early to tell, but it appears as though the wireless headphones are receiving reviews.
Apple has said that in three months 78.3 million iPhones have been sold, overcoming the prior year of 74.8 million. In addition, the reported revenue of Apple has increased for other products as well. The iPhone had sales of $54.3 billion, Mac computers had $7.2 billion, $5.5 billion from the iPad, and $4.0 billion from other products. The App Store, Apple Music, and iCloud have provided $7.1 billion of Apple’s income as well.
After a long wait Apple has had an increase in sales thanks to its newest iPhone 7; Apple beat its own records in this quarter. While the competition between different companies continues, this boost in sales should help Apple. It will be interesting to see if 2017 will be as prosperous as expected.