Perhaps it’s because of the robust sales of the new Apple offerings, iPhone X and iPhone 8 series, that the company is starting to gain ground again after a declining revenue from last year. The 4th quarter report of Apple Inc. showed that majority of the increase in sales is due to the new series of iPhones introduced at the last quarter of 2017.
iPhone sales accounts for the majority of all the revenue generated but other segments of the tech giant are also showing robust growth. This contributed to the increase in Apple stock prices and the excitement of investors.
Excitement over the increase in iPhone sales in China
Another news that adds to the excitement in Apple stock prices is the Chinese market. For years, Apple has been betting that their sales in China will grow exponentially and this is the year that it grew up to 12 percent compared to last year. The estimates were only at $9 billion but actual sales was a whopping $9.8 billion to date.
Due to China’s growing economy and increase buying power of its citizens, Apple has always believed that their products will be in high demand in the country. This is especially important in attracting the Chinese market because the brand is a status symbol and Chinese consumers are now embracing their purchasing power. However, when sales fall from the last 2 years, there has been talk of tapping other markets for opportunity such as India.
When CEO Tim Cook spoke in a prepared speech however, he is clearly elated over the Chinese market again, “We returned to growth in greater China with unit growth and market share gains for iPhone, iPad and Mac. “In fact, it was an all-time record quarter for Mac sales in mainland China as well as an all-time high for services revenue.”
Morgan Stanley analyst Katy Huberty, who’s also optimistic with this growth has this to say, “We believe that Apple is just turning the corner in China and growth will meaningfully accelerate in the quarters to come.”
In fact, she’s positive that this improvement on iPhone sales is just the start and will continue to increase, “We expect this trend to only accelerate as future data sets will include the period after the iPhone X first began shipping,” she wrote.
She also thinks that a number of factors are contributing to Apple’s increased sales in China which include:
- more consumers are interested in large-screen phones
- a desire for a whole new iPhone that will revolutionize the mobile industry again
- older iPhones are due for better upgrades
iPad sales shows an increase too
Aside from the growth of iPhone sales in China, iPads are also surpassing expectations. Revenue estimates from analysts’ data predicted for just around the $500 million mark compared to the whopping $4.8 billion actual sales. That’s a 14% increase in terms of revenue and 11% in terms of unit sales from a year ago.
This is the first time in 4 years that the renowned tablet from the tech giant has gained a tremendous growth. To top it off, it’s not showing any signs of slowing down so expect Apple stock prices to continue to soar, which is at $ 171.67 per share at the time of this writing.