There was at least one common theme reflected in the revenue that the handset archives Apple and Samsung both reported this week – revenue declines in both companies & # 39; expensive smartphones.
Apple, for its part, no longer breaks down device sales but revealed a 12% drop in iPhone sales Tuesday compared to the same quarter in 2018. The iPhone maker generated $ 25.99 billion in smartphone revenue during most of the last fiscal quarter, down from just over $ 29 billion a year earlier. At Samsung, the story was similar.
Samsung's revenue announcement reflected an increase in smartphone shipments over the last quarter, compared to the same period in 201
One conclusion that can be drawn from all this is that consumers are staging a silent rebellion against phones with $ 1,000 + price tags.
CNBC noted Wednesday that this is why many people, for example, hold on to the phones for much longer than they used to. Because of the price, but also because phones from virtually all major manufacturers are so much better than they used to be – and they stay that way for much longer.
The deeper you go, you begin to find many interconnected trends that are linked to and affecting each other. According to Bernstein analyst Toni Sacconaghi, iPhone owners are now upgrading their devices once every four years. This serves to postpone an increasingly expensive upgrade, which is also easier to do when the phones are as solid as ever. If consumers only see incremental improvements in subsequent model generations that will only make them stay even tighter for this longer time horizon.
It is also getting harder and harder for Apple, Samsung and many other manufacturers to really wow consumers on the basis of the cameras when they are already so amazing. "Apple launched its iPhone XR in September last year, a phone that stands out for both camera quality and battery life, but starts at $ 749," reports CNBC . "The more expensive iPhone XS ($ 999) and XS Max ($ 1,099) have more colorful and lighter displays and even better cameras, but most consumers don't want to spend as much to get there. Meanwhile, Apple is also selling the iPhone 7 for $ 299 with an exchange. ”Similarly, Samsung's A-Series phones generate interest from consumers who won't spend nearly $ 1,000 on a Galaxy S10 +.
Meanwhile, both Apple and Samsung are pressing. The latter will unveil the Galaxy Note 10 next week, a much-awaited device from a handset lineup that has legions of fans and will represent an attempt by Samsung to keep up with Apple. More specifically, to keep up with the company ahead of the latter introduction of the latest iPhones, which will be announced in September.
When we talk about Apple, the maturation of the iPhone is the reason why the company has so successfully squeezed in new revenue categories like subscription. Consequently, investors do not seem at all concerned about their business, given that Apple at this time on Wednesday wrote this price up the pitch to make it a trillion dollar company again.