Apple revises down its global sales revenue estimate to $83 billion due to subpar smartphone sales in China.

James Campbell

2019-01-09 07:33:00 Wed ET

Apple revises down its global sales revenue estimate to $83 billion due to subpar smartphone sales in China. Apple CEO Tim Cook points out the fact that he cannot blame external factors for selling fewer iPhones in the Christmas holiday quarter. However, Apple fails to acknowledge the real possibility that the new iPhone prices may be too high. Apple iPhone prices are about 5 times higher than the average non-iOS smartphones sold by HuaWei, Oppo, and Vivo. The high-end smartphone market may be fully mature with longer replacement cycles. This tech trend poses a major long-term challenge to Apple.

There are at least 3 solutions to weaker global demand for iPhones. First, Apple can broaden the scope of short-term programs for renting pricey iPhones. These rental programs can help transform high-end Apple iPhones into more affordable options. Second, Apple can consider introducing fresh media services in addition to Apple Music. Apple can apply the profitable business models of iTunes and App Store to real-time video streams, games, and several other entertainment outlets.  Third, Apple can take advantage of offshore cash repatriation to fund acquisitions of media service providers. These solutions accord with the current Apple business goal of growing media services to quadruple their sales and profits.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

America faces income inequality, political polarization, and dysfunctional governance.

Rose Prince

2018-05-17 07:41:00 Thursday ET

America faces income inequality, political polarization, and dysfunctional governance.

Has America become a democratic free land of crumbling infrastructure, galloping income inequality, bitter political polarization, and dysfunctional governa

+See More

U.S. federalism and domestic institutional arrangements

Olivia London

2023-12-10 09:23:00 Sunday ET

U.S. federalism and domestic institutional arrangements

U.S. federalism and domestic institutional arrangements A given country is federal when both of its national and sub-national governments exercise separa

+See More

Uniform field theory of corporate finance

Peter Prince

2022-11-25 09:29:00 Friday ET

Uniform field theory of corporate finance

Uniform field theory of corporate finance While the agency and precautionary-motive stories are complementary, these stories can be nested as special cas

+See More

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009.

Jonah Whanau

2023-08-14 09:25:00 Monday ET

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009.

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009. Peter Isard (2005) &nbs

+See More

The Intel trinity of Robert Noyce, Gordon Moore, and Andy Grove establishes the primary semiconductor tech titan in Silicon Valley.

Jonah Whanau

2020-04-03 09:28:00 Friday ET

The Intel trinity of Robert Noyce, Gordon Moore, and Andy Grove establishes the primary semiconductor tech titan in Silicon Valley.

The Intel trinity of Robert Noyce, Gordon Moore, and Andy Grove establishes the primary semiconductor tech titan in Silicon Valley. Michael Malone (2014)

+See More

Elon Musk envisions a bold fantastic future with his professional trifecta of lean enterprises SolarCity, SpaceX, and Tesla.

Joseph Corr

2020-04-10 11:33:00 Friday ET

Elon Musk envisions a bold fantastic future with his professional trifecta of lean enterprises SolarCity, SpaceX, and Tesla.

Elon Musk envisions a bold fantastic future with his professional trifecta of lean startup enterprises SolarCity, SpaceX, and Tesla. Ashlee Vance (2015)

+See More