Apple is for me the best marketing company on this planet right now. How is it possible to make so many people around the globe to sleep day and night outside to wait for an Apple store to sell their new product?
Apple is a great success in the West but China will become a more important player in the future. Revenue in China grew 71 percent, to $16,8 billion, Apple said in its financial earnings report earlier today.
Revenue in total jumped 27 percent to $58 billion ($45,6 billion in 2014), and their profit for its Q2 jumped from $10,2 billion last year to $13,6 billion in 2015. That`s above Wall Streets estimates, which is awesome.
CEO Tim Cook said that their March quarter is the best ever, and reported a higher rate of people switching from Android smartphones to iPhones wich is profitable for Apple. Last year they sold 43,7 million iPhones, but this year they sold 61,2 million.
This is thanks to sales in greater China, which is mainland China, Taiwan and Hong Kong. While iPhones sales goes up, the iPad sales goes down. They sold 16,4 million iPads last year, but now the sale declined to 12,6 million, but what is the difference between an iPad and a big screen iPhone?
Apple`s capital return program increased by 50 percent, using a total of $200 billion in cash by the end of March 2017. The money will be used to increase share repurchases and lift Apple`s dividend.
Apple started to sell Apple Watch on friday and they said the demand is exceeding initial supply. They will reveal sales figures for the new Watch later together with other products. How many units do you think Apple have sold so far? 2 million? 2,5 million? 3 million?
Pebble sold 1 million in one year. Samsung sold 1,2 million last year. This is what Apple have sold in one single day! But how fancy is the Watch market actually? Not as fancy as the mobile phone. 1,2 billion smartphones were sold last year. About 5 – 6 million sold in the smartwatch market I guess.
But the smartwatch market can grow. Yes, of course it can, but I`m in doubt (Sorry Tim Cook). Yes, I know that Apple didn`t sell many iPod`s at the early stage, but it took off and killed the MP3 players from Sony. Now, both are dead.
People was skeptical about the new iPhone too, and said «no BlackBerry-killer.» But we all know the rest of the story. Iphone is a big success. So can the new Apple Watch be. Not only a success in sales volume, but the most profitable too. It depends on how you measure success?
Apple Watch prices start as low as $349 and goes as high as $20,000. You can imagine the margins? I know that Pre-order inventories of the most expensive watch, which is the gold Apple Watch Edition, was sold out in less than one hour in China.
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