Apple’s Vital iPhone


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On July 22nd Apple will be announcing their earnings for the third quarter amid many industry analyst projections for the company. Currently the latest projections have been released by Wells Fargo Securities which has stated that Apple may actually beat what Wall Street had predicted for the company with another quarter of record breaking sales. Apple has in recent months been attributing the bulk of its success on strong, almost exceptional iPhone sales in comparison to their other products.

iPhone 1Apple’s Popularity

For many the popularity behind Apple is the constant advances in the smart phone technology. For awhile Apple’s iPhone was top tier when it came to the smart phone industry. Many telecommunication company experts have agreed that in recent quarters Apple has struggled with overall phone sales due to what has been called the smart phone wars that the company has been engaged in with Samsung. Of course when it comes to preference from one phone over another, pros and cons can be seen by the individual users depending on what applications they are looking for as well as the capabilities of the phones. Many people either love or hate what they have depending on they are looking for. Apple was one of the first companies to offer smart phones on a readily available stream of inventory. Since the early days of the smart phone wars the popularity of Apple’s smart phone has increased due to the ability for the phone to communicated and sync up with the many other popular products produced and offered by Apple. Some absolutely adore Apple’s products over other companies due to innovation, ease of use, or simply because they have had better experiences with Apple products over some competitors. The company has a lot of money backing up its ventures and every time a new Apple product hits the shelves a new craze is born.

The iPhone’s Success

For the past several quarters Apple’s success has been almost totally reliant on their strong iPhone sales. Current projections by Wells Fargo analysts believe that Apple will sell slightly over 36 million iPhones in the third quarter. What that translates is to roughly a 38.2 billion dollar profit. If the company does sell 36 million phones, it would beat the sales numbers of iPhones sold in the third quarter of last year which were around 31 million iPhones sold this time last year. The profits that were made in the third quarter of last year were roughly worth about 37.9 billion dollars; so if the increased sales come to be then Apple will have made significant gains in just about a year’s time. ¬†Industry experts believe that the reason behind the stronger sales numbers would be best attributed to the higher availability in four more countries (Lebanon, Kosovo, Brunei and Kazakhstan) and sixteen new carriers since the end of April. New marketing campaigns have also contributed to the overall success of Apple’s iPhone sales increases. Others have argued that some of the more recent success that can be seen in the third quarter of this year is the differences of the iPhone models being offered. Instead of the 4 and the 4s that were offered with only a slight difference in price, this time Apple product the 5s and the 5c with dramatically difference price points. What the 5c offered consumers was the chance to obtain and use iPhone technology without burning their finances. It is because of this lower cost for what is roughly the same amount of capabilities and features that may have been the key for the much strong iPhone sales this quarter over sales numbers from this time last year.

Apple’s Other ProductsiPhone 2

Apple’s other products are all speculated to come in severely below the iPhone sales but all still contributing to the overall success of Apple. The projections released by Wells Fargo has pegged that Apple will have sold 12 million iPads, 3.9 million Mac computers, and 1.9 million iPods for the third quarter of 2014. This time last year Apple sold 14.6 million iPads, 3.8 million Mac computers, and 4.6 million iPods. This means that when you take away the strong iPhone sales from the profits gained, Apple is successfully having a year after year decline in all other products produced by Apple.

Innovation on both the technological scale and the marketing scale have contributed to the staggering success Apple continues to make on a quarter to quarter basis. The company may be paving the way to success with its ever popular iPhone series, which is allowing the company to focus on purchasing new companies and incorporating those technologies into its home brands making a better product that can be more enjoyable as well as more capable for its users. The success of the iPhone continues to be the bread winner for Apple, proving that when you have a winning formula it is hard to fix what isn’t broke.

 

 

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