Apple & # 39; s "engine"? According to some market analysts, the iPhone is no longer. Incidentally, this distinction cannot yet be attributed to services, but accessories, gadgets and wearables company. Products like Apple Watch as well as AirPods, two products that maintain the company's growth.
With iPhone sales falling, your smart watch and Bluetooth headset are growing!
According to Apple's latest fiscal report for April-June 2019, iPhone sales are dropping. In fact, sales volume fell by 12% over the same period in 2018. However, that decline was offset wearables.
IPhone drops ...
While the iPhone is undergoing a period of recession, wearables is rising. Specifically, revenue from Apple Watch and AirPods increased by 48.3%. It is therefore an extremely significant increase with a solid capital inflow generated by this smart accessory.
In fact, both Apple Watch and AirPods led their market segment during that quarter. Something that has been proven by various market analysis agencies, which you can see from the article below. From this we can see the growing popularity of these products.
More specifically wearables generated $ 5.53 billion over the three months audited. As a result, we saw remarkable growth compared to the US $ 3.73 million (revenue) generated during the same period in 2018, Q2. Thus, a new success story materializes within the technological giant.
AirPods and Apple Watch, the new stars
This new paradigm prompted UBS market analyst Tim Arcuri to take a fresh look at the company led by Tim Cook. So according to the same, they are wearables moving the technology accounts. That is, the current growth is mainly due to Apple Watch and its AirPods.
The growth engine is no longer the iPhone that rests on accessories now. According to the analyst, it was for the first time in history in a fiscal quarter, wearables recorded higher growth than Apple services when comparing year to year periods.
The surprise comes from the expected solid growth in the company's services. A segment that includes Apple Music, Apple Pay, iCloud, as well as the App Store and Care. Here we also have new bets like TV +, the news service, and in the future also the gaming service, Arcade.
Services is one of Apple's largest sectors
The industry accounted for $ 11.05 billion within three months. However, its growth was "only" 12.7% compared to US $ 10.2 billion in the same period of 2018. Thus, we see healthy growth in this area, although wearables has won the podium.
The analyst is also sure to launch the third generation of AirPods. However, it points out that only 7% of iPhone users have a pair of these headsets. Therefore, according to him, there is tremendous growth potential here for this accessory, which already has great demand.
It should also be noted that this year Apple has released the second generation of the product. Now equipped with H1 processor over W1 used in the first iteration. In addition, we now have more battery life, which also reduces the latency (delay) in audio transmission as well as voice commands.
What can we expect from the next AirPods?
The integration of Siri virtual assistant is also a noticeable bonus, as is the ability to wirelessly load the AirPod box. Still, the analyst believes that there is still room for improvement in this product and even points out some of the expected rises.
With a possible release this fall, the third generation may be able to bring some improvements over last March's release. These include water resistance and the use of a new material in its construction. This is for the purpose of making them less slippery and prone to fall.
Similarly, the analyst points to the integration of technologies for active noise reduction. A news that users have requested and that may be accompanied by water resistance. Finally, it is also suggested that new color schemes be made available in addition to the only available target tone.
Perfect companions for the Apple Watch?
Already according to another source, analyst Ming-Chi Kuo, the next generation of Apple Watch may come with the next iPhone. Thus, we would have a bipartite presentation in September next year, and we must not throw them away for the company's wireless headsets as well.
This may be the perfect formula for the company struggling with a fading interest in the iPhone. On the one hand, a strong growth in services and on the other, its accessories to promote a strong increase in demand. In addition, this type of product is also a good fit for the Apple ecosystem.
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