Apple Attracts New iPhone Fans as Existing Owners Await Upgrade

Apple iPhone 7 launch was heavily criticized by all both the tech critics as well as users but it hasn’t dull the Apple aura at all. Apple delivered its best quarters a year ago with the launch of iPhone 6s but such shipments volumes were not repeated with the iPhone 7 as most of the people vouched for waiting for better upgrade in upcoming years. However things are not as bad as it looks or appears to most of us. Quite on the contrary Apple has been able to attract whole new generation of iPhone customers during this last holiday season. The services revenue is raising steadily with the iPhone 7 shipments and the share for Apple rose to its highest level in as many as 17 months.

iPhone sales are driven by new customers

Apple has maintained that the iPhone users are upgrading to the iPhone 7 at the same rate as they upgraded to iPhone 6s last year. Apple has been able to sell about 3.5 million more phones in the third quarter of 2016 which were driven by new customers. iPhone 7 was snubbed by the critics as it offered modest upgrade over the last iPhone but it still brought a range of features which includes an improved camera, water resistance, improved processor and enhanced camera. 2016 being the 10 anniversary of the iPhone it was expected that Apple will bring turnaround changes in terms of designs and modifications of the smartphone but Apple failed lived up to the expectation.

Apple is working hard on the innovation front as its R&D spending had simply jumped by 19% and so far company has spent about $2.9 billion in the first quarter. During the holiday season of 2016 Apple’s total revenue increased by 3.3 percent to a commendable $78.4 billion and it has been able to earn about $3.36 a share. The major breakthrough made by the Apple in this holiday season is also attributed to fact that Samsung Note 7 were recalled due to battery explosions.

Apple iPhone is galloping

The US performance of Apple iPhone adoption or upgrading to latest iPhone is slow as carriers have plans wherein users get discounts on their new devices for next two years. This ensures that consumers stick with their older devices for longer time than necessary. However these kinds of plans came to an end in 2016 and it has opened up a greater audience ready or upgrade for Apple iPhone.

Apple year to year iPhone sale decline has reached its high during 2016 which forced Apple to give a push it services in order to keep generating revenue through its Apple Music, iCloud and App Store. Apple device ecosystem is closely linked with its range of services which brings a wide amount of revenue for Apple apart from keeping the user-experience streamlined across its devices. Quite recent Apple financial reports has shown that its services grown by 18 percent to a massive $7.2 billion. Apple has set its aim to double up the annual total to a goal of $50 billion by 2021.