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By Liu Yimo
Source: slightly larger reference (ID: hyzibenlun)
Where is Apple’s upper limit? Besides the self-developed chip business, when will Apple car be available?
Cook proved once again that he was a good conservationist.
On January 28, Apple released the results of the first quarter of 2021, achieving revenue of $111.44 billion, exceeding the expected $103.28 billion, up 21% year-on-year. This is the first time in Apple’s history that the revenue in a single quarter exceeded 100 billion. Meanwhile, the revenue of other businesses other than mobile phones also increased steadily.
With a market value of nearly 2.4 trillion, Apple’s performance can only be described as steady, and there is no sign of decline. Even though the decision of new iPhone without charger has been unanimously ridiculed on the social networks at home and abroad, the final data still shows that Apple’s environmental protection strategy has brought its own face.
Apple is more and more like an emotionless money making machine. It is huge, delicate and industrious. Jobs said that apple is standing at the crossroads of Humanities and technology. Now Apple has finally given its own answer and is making profits.
IPhone still “really fragrant”
The reason why Apple’s press conference in autumn is called the Spring Festival Gala of science and technology circles is that the annual regular release and high-profile new iPhone, each generation of iPhone has the highest degree of confidentiality within apple, but it still can’t stop all kinds of exposure. Some netizens even put the analysts who do apple product prediction into a ranking according to the accuracy rate. From this side, we can see iPho The importance and influence of NE on apple and the market.
Before the financial report is released. The market’s profit forecast for the iPhone is $59.8 billion, while the final iPhone revenue is $65.6 billion, up 17% year on year. 65.6 billion US dollars, accounting for about 59% of Apple’s total revenue in the quarter. It is an important reason for Apple’s revenue exceeding 100 billion in a single quarter that it can stabilize the iPhone’s basic disk.
The market share of iPhone once shrank under the pressure of Android manufacturers, and the lack of innovation has become the main basis of public opinion. However, when Apple changed its strategy and launched several relatively cost-effective products one after another, the mobile phone is still Apple’s unshakable golden cow.
In this quarter, revenue growth is obviously related to the release of the iPhone 12 series.
In October 2020, Apple released the latest iPhone 12 series, including four models from the iPhone 12 mini to the iPhone 12 Pro max, and the pricing is still Apple’s taste. If the image system and performance improvement are not strong for ordinary users, then 5g has obviously become the biggest selling point of the iPhone 12 series, and Apple should be a good learner without a big price increase of 5g.
5g as a selling point has obviously become one of the reasons for Apple’s 57% increase in revenue in Greater China. Thanks to China’s strong infrastructure capacity and the aggressive market strategy of domestic mobile phone manufacturers, domestic consumers have long recognized and accepted 5g. In 2019, China will release its first mass-produced 5g mobile phone. Only half a year later, by the end of 2019, the price of 5g mobile phone terminal will be less than 2000 yuan, and 5g products will be popularized rapidly in China.
Therefore, although the iPhone, which was released in the second half of 2020, did not take the lead in time, in the face of more tolerant market acceptance, consumers of iPhone 12 can think less about the popularity of 5g base stations and related charges than a year ago.
In foreign countries, 5g can still be used as a powerful selling point in the publicity. Although at the beginning of listing, some consumers still worried that Intel’s baseband would have an impact on the signal strength, from the follow-up consumer feedback and some evaluation, the signal level of the iPhone 12 series is indeed higher than that of the previous generation, so potential consumers are less worried about buying.
With less concern, 5g’s trend of replacement has naturally formed – although for many consumers, 5g’s most existential time is still when users find that the mobile phone’s battery life is not as good as that of the previous generation, and when users display the speed measurement screenshots on Speedtest in their circle of friends, this does not hinder the sales of the iPhone 12 series, even without a charger.
In addition, the iPhone 6 series, as the world’s top selling iPhone product, even the “nail users” need to change their phones. Due to the weakening competitiveness of the previous generation of products compared with the new Android phones at the same price, Apple launched the long-standing iPhone in 2020 At the same time, the se2 and the iPhone 8 were taken off the shelves, filling the gap of 3000 yuan, giving Apple consumers and potential consumers more choices.
So here’s Cook’s next line: “the upgrade of the iPhone has set an all-time high in China.”
Besides the iPhone, Apple’s other hardware also makes money
Some people say that apple sells expensive products that can be taken out to show off, such as iPhone, such as headphones, while products like homepod Mini that can only be used at home can be very cheap and cost-effective.
This statement should be true and wrong. Compared with the android with the same positioning, the price of iPhone is indeed expensive. However, in terms of the value preservation rate, apple, as the most valuable mobile phone brand, has been recognized by consumers and is competitive. On the contrary, the second-hand price of the mobile phone with the same price as apple is often miserable after one year.
Other hardware other than Apple’s mobile phone basically includes Mac, iPad, apple watch and airports. Although the total revenue is only $30 billion, less than half of the iPhone category, each category has maintained a growth rate of more than 20%.
Behind the high growth rate is the success of Apple’s market strategy and product power. For example, at Apple’s third launch after the iPhone launch last year, Apple released M1, an apple self-developed desktop chip based on ARM architecture, and three MAC products equipped with the chip.
The improvement of M1 chip to MAC is very obvious. In addition to performance, it can also help the system better realize the interoperability between Mac OS and iPad OS. Moreover, because M1 chip is more suitable for Mac products, it can achieve better endurance in product configuration.
Due to the realization of interoperability, apple eco developers no longer need to develop a separate set of software for mobile phones and computers, but only need to pay a little attention to screen adaptation. It has to be said that this is a great benefit to the already powerful Apple software ecosystem, and also helps to make up for the shortcomings of MAC products in entertainment and other aspects, such as attracting more game blockbusters to release on Mac.
As for the three new Macs, the cost performance is obviously the most outstanding. The configuration of increasing the quantity without increasing the price makes many consumers shout for genuine fragrance. For example, the Mac Book air entry version with M1 chip only sells for 7999 yuan, which is very competitive in the MAC ecosystem.
IPad’s revenue increase is the most obvious, with revenue of US $8.44 billion in the first quarter, a year-on-year increase of 41%. Unlike Android and windows, Apple has always been quite ambitious in tablet products.
In terms of hardware, the new iPad Pro released last year is equipped with a series of chips that are more powerful than the same generation iPhone, and supports the use of Apple pencil on a number of newly released iPads. In terms of software, the iPad OS with stronger productivity has been launched, and a lot of efforts have been made in interworking, so that users can be more productive after they buy it.
The popularity of iPad is obviously related to the demand for online education and distance education in 2020. According to wise financial report, “in the year when I sell mobile phones, I make 10000 to 1000 a day.” a digital product stall owner in Shenzhen said, “tablet was very valuable at that time Let me make a statistics that the tablet sales in March alone can have my sales in the past quarter “, and the iPad with its complete ecology can obviously win more attention in the tablet market.
The new Apple watch, released at the same time as the iPhone 12 series, continues the relative cost performance strategy of the iPhone se2, and releases the cheaper Apple watch se with blood oxygen monitoring and other functions as the difference. The 29% revenue growth proves once again that as long as apple dares to do, consumers will dare to buy cost-effective products.
Imaginative service revenue
It’s an indisputable fact that apple is paying more and more attention to software revenue. Whether it’s the launch in the autumn of 2019 or the launch without hardware in the first half of 2020, cook is clearly sending a signal to make money from the ecology.
At present, the iPhone has more than 1 billion Holdings, plus other hardware holdings, with a total of more than 1.65 billion, which means that there is great potential to benefit from the ecosystem. As a result, there is no doubt that Apple’s service business revenue this quarter reached 15.76 billion US dollars, a year-on-year growth of 24%, becoming the business second only to mobile phones, and the growth rate of 24% is also the fastest in two years.
At present, the revenue sources of Apple’s service business are very mixed, such as Apple Music and Apple TV + for streaming media, arcade for games, apple pay for payment and icloud for cloud services.
In the map of Apple’s service business built by cook, Apple will build a moat of streaming media business by focusing on the content side. Although it is not sure whether Apple will aspire to become Netflix, the higher and more stable profit margin is enough for apple to make continuous efforts.
In addition, it is worth mentioning Apple’s apple care service for mobile phones. Apple’s maintenance fees have always been very expensive, but Apple care is not cheap. Therefore, although the growth of Apple care business has brought more revenue, it also reflects the extension of user’s replacement cycle and the decline of replacement rate to a certain extent.
From the perspective of Apple’s revenue structure, apple still makes money by selling hardware, and the sales are getting better and better. However, in recent two years, Apple has paid more and more attention to the revenue brought by software. IOS, Mac OS and iPad OS are not only the important reasons for consumers to buy Apple’s hardware products, but also the important fulcrum for apple to improve its revenue and optimize its revenue structure.
For the future, we can be sure that the performance will continue to grow, and consumers will continue to really smell or buy after scolding. And the only uncertainty is probably where Apple’s upper limit is. Besides the self-developed chip business, when will Apple car come out?
The picture comes from the Internet, so it’s illegal to delete it
(statement: This article only represents the author’s point of view, not Sina’s position.)