Apple iPhone Sales Analysis - Essay Example

Business Table of Contents Introduction 3 Aim and Scope of the Report 3 Findings and Analysis 3 Conclusion 5 References 6 Appendix 7 Appendix A: Total Revenue of Apple Inc 7 Appendix B: Share of Iphone in the Total Revenue 7 Appendix C: Year-On-Year Sales Growth of Iphone 8 Appendix D: Historical and Predicted Iphone Units 8 Appendix E: Apple Projected Sales Growth 9 Appendix F: Apple Iphone sales 9 Introduction Apple Inc. is a US based multinational business establish in the year 1977, headquartering California. The company deals in the business of production as well as distribution of various ranges of consumer electronic products and other online services. Over the years of business in the international domain, the company realizes to adopt various strategies and thus integrates operations in different sectors to sustain in the competitive landscape for longer time period. The offering of business includes iphone, ipad, mac and online services. Iphone, which was introduced in the year 2007, has substantially got high media attention because of its significant features (Reuters, 2015). Aim and Scope of the Report This report emphasis on analyzing the sales of iphone from 2011 to 2015 and its contribution in supporting the company to attain high growth prospect in the international market. Additionally, the factor that contribute significant role in the growth of upcoming model of iphone will also be analyzed. This report is expected to highlight the success of new generation iphone in the upcoming periods. Findings and Analysis Apple highly emphasizes over developing its products to attract the customers and delivering them superior quality of the products and/or services. The offering of the company is specifically configured in accordance with the changing preferences in creating uniqueness and innovativeness. The continuous success of business and attractiveness in the international domain is reflected in the continuous increase in revenue of business. During the financial year 2014, company has revenue of around $182 billion, which was $8 billion in the decades ago (Shown in appendix A). Continuous investment in the research and development activities remains the key aspects that allow the business to meet the ever changing demand of customers. The hardware segment has the high level of contribution in the overall profitability. Moreover, the launch of iphone initially during the year 2007 and its eight-generation is most selling product of the company. Statistically, in the current scenario more than 500 million units of iphone has been sold in the international domain since from its first launch in the year 2007 (Statista, 2015). Correspondingly, in the first quarter of 2015 around 61.2 million iPhones sale has been raised from 43.7 million over the previous year. On the other hand, Mac sales has also uplifted to 4.56 million units, which was previously 4.1 million units in the last quarter of 2014. Justifiably, iPad sales was down and fallen to 12.6 million from previously 16.35 million sales (shown in appendix B). The revenue figure of product segment along with respective share of each segment is highlighted in appendix B from 2009 to 2015. The iPhone accounted for 60% more share in the revenue of the companys sales figure. Additionally, service sector income has also increased on the other hand Mac is smooth excessive over the last quarter of 2014 and in the first quarter of 2015 iPod sales are gradually reduced. The Iphone has become apples flagship product, which single-handedly make and one of the renowned brand in the international market. Moreover, customers are eager to replace their current model of iphone with the new models once it’s available in the market that reflected the immense popularity of the particular brand product (MacRumors.com, LLC., 2015). Based on the statistics (shown in appendix C) it can be reflected that iPhone in the last 4 year has reached to the historical peak, with more than 100% year-on-year growth in the every quarters. Moreover, in the first and second quarter, iPhone sales grew between 20% and 45% respectively in the market (Yarow, 2015) UBSs i.e. the well known foreign investment bank highlighted the fact that in the September quarter of 2015, the sales figure of iphone is expected to reach 49 million. This suggests optimistic growth prospects of the iphone sales on the basis of ‘iPhone Monitoring Modeling’, which mainly inferred from the search of iphone in the world wide network. Over the past four years, the growth in the iphone was recognized to be around 73%, 20%, 13% and 35% respectively. Moreover, it has been affirmed that in the upcoming year the sale of iphone is expected to rise due to high response and attractiveness of iPhone 6s among the customers. In this regard, it has been highlighted that there are still 73% of iPhone users willing to upgrade the configuration with big size screen of the iPhone 6 and iPhone Plus, so the new generation sales of the same period continues to grow more. In fiscal 2016, it is expected that iPhone sales would increase by 6% to 245 million units (shown in appendix D) (Hughes, 2015). Apple continue to benefit from Chinas growth, according to the data provided and during the second quarter the iPhones search volume rose 100% year-on-year. Apple is a successful case in China, besides consumers are willing to upgrade the iPhone with higher prices. Apple launched the iPhone smartphone and its sales hit a new high and level with more revenue. Many people think that Apple sold 10 million units of the iPhone 6 in three days later, it will be difficult to get a record was broken. According to Alidori (2015), the Apple lover customers are eagerly waiting for launch of successor of iphone 6. Earlier, many experts believe that the death of the founder of Apple Steve Jobs was the reason for smartphone sales will end to the success of the iPhone. However, his successor, Tim cook, continues to adopt the strategies to boost the sales of the iphone and emphasis to break the previous sales records. Most likely, considering the history of iphone the expected data of launch of new model is September 2015. This has been justified with the previous history that iphone 6 and 6 Plus was launched on September 2014, which successes iPhone 5s and iPhone 5c that lunched in September 2013 on the other hand, iPhone 5 was released in September 2012 that successes iPhone 4S which was launched on October 2011 (Alidori, 2015). According to Siegal (2015), company has issued to the upstream suppliers order record of 85 million to 90 million for the next generation iphone. During the year 2014, before introduction of iPhone 6 and 6 plus, in order to meet the growing market demand, apple has placed the supply order for 70 million units to 80 million units. This shows great improvement and market attractiveness of iphone in customers because of the features and design (Siegal, 2015). Similarly, the report of MacDailyNews (2015) highlighted the fact that the market value of Apple with the significant contribution of iphone is expected to raise up to $2 trillion (shown in appendix E) (MacDailyNews, 2015). Conclusion Based on the above finding it can be concluded that iphone sale is continuously been rising and reaching the new hikes with its immense popularity. The growing popularity of the iphone in the hand of customers has raised the expectation of increase in the sales of new generation or upcoming model of iphone. However, in order to maintain competitiveness of the business in the international environment, Apple also need to put their special importance over fostering the sales of other products unlike iphone as well as ipad. References Alidori, R., 2015. iPhone 6S Release Date Rumours & New Features: Apple Event Announced for 9 September. News. [Online] Available at: http://www.macworld.co.uk/news/iphone/iphone-6s-7-release-date-rumours-features-price-uk-images-force-touch-photos-leak-event-preorder-invites-3589633/ [Accessed September 07, 2015]. Hughes, N., 2015. UBS expects iPhone 6s launch to push Apples total Sept. quarter sales to record 49M. Articles. [Online] Available at: http://appleinsider.com/articles/15/08/06/ubs-expects-iphone-6s-launch-to-push-apples-total-sept-quarter-sales-to-record-49m [Accessed September 07, 2015]. MacDailyNews, 2015. How Apple Can Reach $2 trillion Market Value in 2016. News. [Online] Available at: http://macdailynews.com/2012/03/16/how-apple-can-reach-2-trillion-market-value-in-2016/ [Accessed September 07, 2015]. Reuters, 2015. Apple Inc (AAPL.O). Overview. [Online] Available at: http://in.reuters.com/finance/stocks/companyProfile?symbol=AAPL.O [Accessed September 07, 2015]. Siegal, J., 2015. Good Luck, Google: WSJ Says Unprecedented Number of iPhone 6s Units on Order. Report. [Online] Available at: http://bgr.com/2015/07/08/apple-iphone-6s-shipments-90-million/ [Accessed September 07, 2015]. Statista, 2015. Apples Global Revenue from 1st Quarter 2005 to 3rd Quarter 2015 (in billion U.S. dollars). Consumer Electronics. [Online] Available at: http://www.statista.com/statistics/263426/apples-global-revenue-since-1st-quarter-2005/ [Accessed September 07, 2015]. Sheffer, R., 2015. Another Earnings Beat for Apple in Fiscal 3Q15. Articles. [Online] Available at: http://marketrealist.com/2015/08/another-earnings-beat-apple-fiscal-3q15/ [Accessed September 07, 2015]. Yarow, J., 2015. LIVE: Apple earnings! Articles. [Online] Available at: http://www.businessinsider.in/LIVE-Apple-earnings/articleshow/48166288.cms [Accessed September 07, 2015]. Appendix Appendix A: Total Revenue of Apple Inc Source: (Statista, 2015) Appendix B: Share of Iphone in the Total Revenue Source: (MacRumors.com, LLC., 2015) Appendix C: Year-On-Year Sales Growth of Iphone Source: (Yarow, 2015) Appendix D: Historical and Predicted Iphone Units Source: (Hughes, 2015) Appendix E: Apple Projected Sales Growth Source: (MacDailyNews, 2015) Appendix F: Apple Iphone sales Source : (Sheffer, 2015) Read More