The enthusiasm of consumers to replace the new iPhone is fading.
On February 8, according to CNBC, research company BernsteinAnalyst Toni Sacconaghi wrote in a report sent to investors that consumers use an iPhone longer than before. In other words, the frequency with which consumers upgrade to the latest iPhone is reduced.
Toni Sacconaghi pointed out that in the 2018 fiscal year, consumers will spend an average of three years to replace the new iPhone, but in the fiscal year of 2019, the cycle will be extended to nearly every four years before changing.
Consumers tend to hold existing iPhones for longer periods of time instead of replacing them with new ones. This is due to a combination of Apple battery replacement plans, operator subsidies, and higher iPhone prices. Apple CEO Cook is also in the last monthPerformanceThe phone acknowledged this.
“Our consumers use older iPhones longer than they used to,” Cook said. “When you put this factor together with the macroeconomic factors of the developing market, these have led Apple to the last fiscal year. Revenue fell by 15%."
On January 29th, US local time, Apple (NASDAQ: AAPL) released its first quarterly results for the fiscal year ending December 20, 2018, showing that Apple’s quarterly revenue was $84.3 billion during the reporting period. It was slightly higher than analysts' expectations of $84 billion, but down 5% from the same period last year. Sales contributed by the iPhone were significantly weaker, at $51.98 billion, down 15% from the same period last year.
Cook explained that the strength of the dollar makes its products more expensive in many parts of the world. In an interview with Reuters, Cook revealed that Apple is considering the iPhone's pricing strategy outside the US.
In addition, subsidies for the iPhone are becoming less and less. “In Japan, there are carrier subsidies and services bundled for iPhone purchases,” Cook said. “But today, local regulations severely limit these subsidies.” Cook said he is working hard to solve this problem, including installment payments, etc. .
The iPhone's battery replacement program has also led to fewer people replacing new machines, and instead continues to use older phones. "Some people suggest that we should not do this because it will affect users' upgrades, but we firmly believe that this is correct for our customers," Cook said.
Analyst Toni Sacconaghi predicts that only 16% of Apple users will buy a new iPhone during the year, and Apple will not be able to see the frequency of users upgrading their iPhones in FY 2020.
According to Fortune magazine, UBS analyst Timothy Arcuri predicts that iPhone sales will be sluggish in 2019, which may continue until Apple launches the next generation of smartphones.
Apple's pressure is also derived from the pursuit of competitors.
MarketResearchThe IDC released the fourth quarter of 2018 and the global smartphone market report of 2018 show that in the fourth quarter of 2018, Samsung Electronics is still the world's largest smartphone supplier with a market share of 18.7%, and Apple and Huawei ranked second. Third, the market share is 18.2% and 16.1%, respectively.
From the year of 2018, Samsung and Apple's shipments are declining. Samsung's shipments are 292 million units, the market is divided into 20.8%, and shipments are down 8%. Apple's shipments are 208.8 million units. The market share was 14.9%, and the shipment volume decreased by 3.2%. Huawei's shipments were 206 million units, with a market share of 14.7% and shipments increased by 33.6%. In the whole year of 2018, Huawei and Apple's previous shipments were only 2.8 million units.
(Article source: 澎湃News)