Apple made history again. On the evening of August 19, Beijing time, Apple’s share price soared after the opening of U.S. stocks, with the highest price reaching $468 per share, and its market value once exceeded $2 trillion. Since August 2018, apple became the first company to break through the market value of US $1 trillion, Apple has doubled its market value in two years, and has entered a new realm that no one has ever set foot on.
it took 38 years for apple to go public in 1980 with a market value of one trillion yuan, and the process has been ups and downs. The process of realizing the second trillion is far less complicated. In the past two years, Apple has faced a crisis and a gorgeous turn. It has stood on a new commanding height.
half a year ago, Apple launched the iPhone x, bringing the price of its flagship iPhone to $1000 for the first time. Despite its high price, the iPhone x still amazes the world with its exquisite design, craftsmanship, and its full screen. At the launch, Cook said the iPhone x will open the iPhone’s next decade.
since the great success of the iPhone 6 Series in 2015, the response of the 6S and 7S iPhones has been flat, and the business performance of the iPhone has also fallen slightly down and stagnated. For two consecutive fiscal years, Apple’s revenue has not increased for 15 years.
the iPhone x is Apple’s savior. Although there is little room for growth in sales, iPhone x proves that iPhones can be sold more expensive. In February 2018, Apple released its first quarter results. The average price of the iPhone has reached an astonishing $796, with sales up 14% year-on-year. After that, the popularity of iPhone x continued to drive sales to maintain a double-digit growth momentum.
if we say that in the first half of 2018, the market has a little doubt whether the heat of iPhone x is a miracle created by a few “fruit powder”. When apple produced a better answer, this question was completely eliminated. On July 31, Apple released its third quarter financial report, with iPhone sales increasing by 20% year-on-year, breaking the third quarter revenue record in Apple’s history.
throughout fiscal year 2018, iPhone sales accounted for an all-time high proportion of Apple’s total revenue, which even reached 70% in the first quarter. The proportion of iPhones is too heavy, resulting in a “top heavy” situation, so that any fluctuations in the business may eventually lead to an earthquake.
in the autumn of 2018, Apple released the iPhone XS and XR series, which once again raised the price of iPhone. Compared with the previous price of the X-ray series from $50. The top price of the iPhone XS Max is $1449, and the domestic price is 12799 yuan. At the same time, the rising price of the iPhone XS series, compared with the previous generation of X, has not much functional improvement.
this generation of iPhones has met with Waterloo. In the first year of 2019, cook issued an open letter to investors, admitting that he could not achieve the revenue target set before, and significantly lowered the revenue forecast for the first quarter of 2019. For the first time since jobs returned to apple in 1996. In the financial report before the lower expectations, indicating that Apple itself did not expect the crisis will come.
the day after the letter was sent, Apple’s share price plummeted by 9%, and the company’s market value shrank by one-third compared with the peak of trillion six months ago. A month later, the official results confirmed Apple’s predicament. The expensive iPhone no longer makes Apple invincible, with sales down 15% year-on-year, returning overnight to pre liberation. Greater China business became the biggest “bleeding point”, with revenue down 27% year-on-year.
fortunately, Apple has a long history of layout. In March of the same year, apple held a software service conference and released four new paid services, including apple news +, TV +, arcade and apple card, covering news, games, video and finance.
Apple realizes that the price of the iPhone can’t go up indefinitely. We must lengthen the front line, rely on the iPhone’s huge user scale and higher software service quality, in order to continue to break through its own development limit.
although the XS generation of iPhones met with Waterloo after its launch, apple and all other smartphone manufacturers are still fundamentally different.
Android manufacturers, including Huawei, Xiaomi and Samsung, sell mobile phones for an average of $200-300, less than half of the iPhone. Selling Android and iPhone are two completely different businesses. The competition is not as fierce as many people think.
in the past two years, Apple has intensified its efforts in system optimization, improved the technological quality of hardware, and left most iPhone users in Apple’s ecosystem. So despite the ups and downs in iPhone sales, Apple’s market share hasn’t been particularly volatile, and the total number of active users has been growing.
from the perspective of sales, the market share of iPhone has been maintained at the level of 10-15%, but the replacement cycle of iPhone users is longer. According to market research, 25% of the world’s active smartphones are iPhones. On some video platforms, the traffic from IOS is even close to 50%. The app store also accounts for about half of the entire mobile app market. IPhone users are more active and willing to pay for software service products.
mining the value of these users is exactly what Apple has focused on in the past year. The battle line around the iPhone has been stretched, and this time wearable devices have become Apple’s “Assassin’s mace.”.
in fact, neither the apple watch nor the airpods were favored at the beginning of the release. Many people think that the smart watch that needs to be used with the iPhone is “useless”. Airpods is a new product form that is hard to imagine. Many people think that the experience of airpods is not fundamentally different from that of wired headphones, and it is easy to fall off.
after several years of iteration, apple watch’s performance has become stronger and its functions have been constantly improved. Airpods have rapidly swept the market through word-of-mouth and fission propagation. Almost relying on these two products, Apple’s accessories business has taken off. Since 2017, the whole accessories business has maintained a year-on-year growth rate of more than 30%. Before the advent of the epidemic last year, it showed a trend of accelerating growth.
what’s more, these wearable devices are closely connected with the iPhone. Whether it’s a headset or a watch, it can only be used with the iPhone to achieve the best experience. As Apple’s accessories business continues to climb, iPhone sales are picking up.
this year, iPhone sales have increased year-on-year in every quarter, and the past quarter is even more record breaking. Under the background of the global smartphone market recession, it is rare to realize the growth against the trend.
IOS, a closed ecosystem that had been “predicted” to fail, eventually crushed Android to death. Operating system closed-loop business, amplification effect is too strong, money is too fierce, but more conducive to innovation. In this system, apple controls the rules, implements the rules, and achieves the ultimate user experience. For iPhone users, the product is easy to use, has face saving, and can even be defined as the “Cheapest” luxury.
although everyone is complaining that the new iPhone is becoming more and more “boring”, the huge number of users remaining in the IOS ecosystem has become the cornerstone of Apple’s performance growth, giving apple a sustainable card to play and turning its limited resources into sustainable fission value.
two years ago, most people would have thought of apple as a smartphone company. So the fluctuation of iPhone business immediately triggered a panic in the capital market, driving Apple’s share price to dive like a roller coaster.
but Apple’s rhythm has not been affected much. Whether it’s wearable devices or Internet services, its development route has been planned long before the crisis. During this period, the outside world has been singing and waning, but Apple almost never responds, just carries out the product blueprint according to its own rhythm.
the growth dilemma of iPhone is not Apple’s problem, but the result of gradual saturation of the entire smartphone market. It’s just that because of its high-end foothold, the iPhone became the first one to “run into a wall.”. This year, the new crown epidemic and the aftermath of the economic recession have accelerated the process of saturated smartphone market. In the context of the decline in the number of manufacturers’ shipments, apple stands out by virtue of its steady development pace and has become the best “safe haven asset”.
apple now has more than just iPhones. It is also the first to focus on smart phones to achieve a huge scale of other businesses. Apple’s Internet services generate $51.7 billion a year, 70 times that of spotify and 25 times that of Netflix, which is the same as Tencent. The volume of accessories business is about 29 billion US dollars, larger than Xiaomi and Tesla. All this is just a side dish for the iPhone, which is a nearly $150 billion business.
in 2018, when Apple exceeded the trillion dollar market value, cook issued an internal letter to employees, in which he said: “the return on financial performance is only a by-product of Apple’s continuous efforts to innovate. We should put products and users first, and always be loyal to the values apple has identified.”
two years later, Apple has gone through ups and downs and finally reached a new level. Despite a perfect financial report in the last quarter, apple still faces many challenges. In the wake of the epidemic, the development and production of the new iPhone have been delayed this year, and Apple needs to solve the production capacity and delivery problems before the holiday season.
Apple’s success is not only the victory of IOS closed ecology, but also more or less related to Huawei’s overall containment by the US government. In the first quarter of 2019, Huawei’s sales in the first quarter surpassed Apple’s, and it has the potential to become a strong competitor. But now Huawei’s teeth are “pulled out”, and apple has entered the 2 trillion market value echelon, which makes this exciting moment less glorious. Global Tech