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iPhone Installed Base Grows Just 2% in Q1 2019

Even as its install base growth is slowing, the iPhone maker hopes to tap into it with a bevy of paid-for-subscription offerings that can bring in revenue

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Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, Aug. 1, 2018. VOA

Apple iPhone installed base in the US has seen a downward trend for quite some time now and its estimated base saw a dismal growth in the first calendar quarter of 2019, new data Consumer Intelligence Research Partners (CIRP) has said.

The quarter ending March 2019 recorded the US iPhone use base at 193 million units, compared to 189 million units at the end of the December quarter, which translates into just 2 per cent growth quarter-over-quarter (QoQ).

“The US installed base of iPhones continues to plateau. Relative to the most recent quarters, and especially to the past two or three years, slowing unit sales and longer ownership periods mean that the growth in the number of US iPhones has flattened considerably,” Josh Lowitz, CIRP Partner and Co-Founder, said in a statement.

CIRP’s estimated US iPhone installed base is based on estimated global iPhone sales of 39 million, calculated from Apple’s iPhone revenue and average iPhone selling price for the quarter ending in March 2019, according to MacRumors.

Apple, iPhone XR
Phil Schiller, Apple’s senior vice president of worldwide marketing, speaks about the new Apple iPhone XS, iPhone XS Max and the iPhone XR at the Steve Jobs Theater during an event to announce new Apple products, Sept. 12, 2018, in Cupertino, Calif. (VOA)

“Of course, 12 per cent growth in a year, after years of much greater growth is still good. However, investors grew accustomed to quarterly growth of 5 per cent or more, and annual growth of almost 20 per cent. This continuing trend prompts investors to wonder if iPhone sales outside of the US will compensate, and places greater pressure on Apple’s determination to sell other products and services to the installed base of iPhone owners,” added Lowitz.

Also Read- Infosys Allotting Shares to its Performing Techies

The Cupertino-based tech giant is emphasising more on services like Apple News+ and Apple Music more than ever now.

Even as its install base growth is slowing, the iPhone maker hopes to tap into it with a bevy of paid-for-subscription offerings that can bring in revenue. (IANS)

Next Story

iPhone 11 Takes Apple Ahead of Microsoft in $1-tn Market cap: Report

Apple is in for a bumper festive season sales and the iPhone 11 series -- starting from Rs 58,900 - has registered very strong demand from the consumers in the country

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apple, software, updates, iOS
An Apple company logo is seen behind tree branches outside an Apple store in Beijing, Dec. 14, 2018. VOA

The pent-up demand for its newly-released iPhone 11 series has made Apple the most valuable company in the US again, ahead of Microsoft with a $1.07 trillion market cap.

Sailing through the US-China trade war that may impact its devices too, Apple stock has reached $236.21 to beat the previous high set just over a year ago.

The news that Chinese and American trade negotiators have reached a preliminary agreement aimed at easing the ongoing trade war between the two nations after holding a new round of high-level talks in Washington, DC, also helped Apple as a proposed 15 per cent tariff looms on $156 billion in Chinese goods, including smartphones and other consumer goods, from December 15.

At the moment, only two US companies — Apple and Microsoft — are in the $1 trillion market cap bracket, with Jeff Bezos-led Amazon inching closer.

Apple shares are about five times higher than they were when Tim Cook became CEO of the company in August 2011, reports Barron’s.

The rally owes partly to a report by the Nikkei Asian Review claiming that Apple is ramping up production of its three iPhone models by as much as 8 million units or 10 per cent of its production.

FILE - Microsoft Corp. signage is shown outside the Microsoft Visitor Center in Redmond, Wash.
FILE – Microsoft Corp. signage is shown outside the Microsoft Visitor Center in Redmond, Wash. VOA

Apple’s weak rally in Q4 2018 was largely driven by concern over iPhone demand. The tables have turned, and this time Apple is set for a record sales riding on aggressive pricing and attractive discounts in countries like India.

The Cupertino-based iPhone maker is expected to report Q4 results on October 30.

The iPhone 11’s pricing strategy has worked well for the consumers in India too as the devices went out-of-stock at both Amazon India and Flipkart in just three days after the pre-booking was thrown open on September 20.

Also Read: Oracle Ensures Keeping Sensitive Data within Boundaries of India

The increase in orders appears to validate Apple CEO Tim Cook’s new strategy of enticing budget-conscious consumers with cheaper models amid the weakening world economy.

Apple is in for a bumper festive season sales and the iPhone 11 series — starting from Rs 58,900 – has registered very strong demand from the consumers in the country. (IANS)