In the fourth quarter of last year, Apple’s revenue exceeded $100 billion for the first time, with sales in Greater China up 57%.
In the shadow of the epidemic, apple still handed over a better than expected financial report.
On January 28, Apple released its first quarter results for fiscal year 2021. According to the report, the company’s net revenue in the first quarter was US $111.439 billion, up 21% from US $91.819 billion in the same period last year, setting the latest record in the history of the company. The net profit was US $28.755 billion, up 29% from US $22.236 billion in the same period last year. Diluted earnings per share were $1.68, up 35% from $1.25 a year earlier.
Among them, the net revenue of Greater China was US $21.313 billion, up 56.97% from US $13.578 billion in the same period last year. It is worth noting that in the context of stock market competition, brand is still the relationship between the ebb and flow. On the same day, IDC and canalys released the global smartphone sales report for the fourth quarter of 2020. According to IDC report, in the fourth quarter of 2020, apple, Samsung, Xiaomi, oppo and Huawei ranked the top five in global smartphone sales. Under the pressure of US sanctions, Huawei became the only one in the top five whose sales declined. Its fourth quarter shipment volume was 32.3 million units, down 42.4% from a year earlier.
Wang Xi, China Research Manager of IDC, told the 21st century economic report that with the continuous change of the external environment, the market pattern may be reshaped, which will undoubtedly bring development opportunities. This requires the industry participants not only to start from the change of demand side, but also to consider the competition for production capacity from the perspective of competition, comprehensively judge and dynamically adjust the market strategy, step by step in the face of variables, strive for progress in stability, and explore their own certainty in uncertainty. “We think the recovery of mobile phone market will accelerate based on the stable growth of demand.”
Apple’s Chinese dividend
Last year, the global mobile phone market was affected by the epidemic. According to the report released by IDC, the annual global mobile phone shipment in 2020 was 1292.2 million units, a year-on-year decrease of 5.9% compared with 1372.6 million units in 2019. Canalys data also shows that global mobile phone shipments in 2020 will be 1264.7 million units, a year-on-year decrease of 7% compared with 1366.7 million units in 2019.
Despite the decline in 2020, the progress of market recovery is impressive, especially in China. As the world’s second largest economy, China has become one of the most important markets for multinational giants. The importance of China’s market has been further highlighted at a time when the developed economies such as the United States and Europe have not yet shaken off the impact of the epidemic.
In the fourth quarter of last year, Apple’s revenue exceeded $100 billion for the first time, with sales in Greater China up 57%. By region, international sales accounted for 64% of Apple’s revenue. Its sales in Greater China fell 29% in the third quarter and rose 57% to $21.3 billion.
Although its sales in Europe, America and other regions have also seen rapid growth, its performance is much worse than that in Greater China. Data show that its growth rate in the Americas is only 12%, while in Europe it is only 17%. The surge in sales in China undoubtedly plays an important role in Apple’s revenue breakthrough of US $100 billion.
Since the first iPhone in 2007, Apple has launched 21 mobile phones. Since 2015, iPhone sales have begun to decline. Since 2018, the sales volume of Apple series products in China has declined seriously. In the fourth quarter of 2018, Apple’s shipment decreased by about 3 million units, a year-on-year decrease of about 22%. Throughout the year, iPhone shipments dropped from 36.7 million in 2017 to 34.2 million in 2018.
But the market turned around last year. Tim Cook, chief executive of apple, said that the upgrading of iPhone users in the Chinese market has set an all-time record. “The performance of iPhone in China is very good. Like the rest of the world, there are also record upgrading behaviors. Because China’s 5g construction is advancing very fast, the vast majority of models sold in the Chinese market are 5g models. ”
The market pattern has changed
Some analysts believe that Apple’s strong recovery, to some extent, is to seize the high-end market share from Huawei. IDC report shows that in the fourth quarter of 2020, the ranking of the top five manufacturers has changed significantly. Driven by the iPhone 12 series, apple returned to the top with 90.1 million units. This created the highest single quarter shipment record of manufacturers, with a year-on-year growth of 22.2% and occupying 23.4% of the market share; Samsung ranked second with 73.9 million units and 19.1% of the market share; Xiaomi ranked third with 43.3 million units and 11.2% of the market share; oppo ranked fourth with 33.8 million units and 8.8% of the market share.
Under the pressure of U.S. sanctions, Huawei continued to suffer, with a sharp year-on-year decline of 42.4%, while another organization’s forecast was not very optimistic. A few days ago, the semiconductor research office of trendforce ranked Q4 as a global smartphone manufacturer. It believed that Apple would reach the top with 21.1% of the market share, Samsung would be second with 17.7% of the market share, and the smartphone market would pick up sharply in 2021, but Huawei could not hold the top six position.
The reason is still the shortage of chips in the supply chain. Nabila popal, director of global mobile device research at IDC, said that many factors are driving the recovery of the smartphone market, including suppressed market demand, continuous promotion of 5g devices on the supply side, active promotional activities and discounts, as well as the popularity of mobile phones in low and middle price segments. It seems that manufacturers are ready for the second blockade to ensure that there are appropriate channels to meet the orders of end consumers.
In fact, due to the blockade, people’s spending on leisure, tourism, dining out and other fields has decreased, while consumers’ spending on almost all smart devices, including smart phones, has increased, and smart phones also benefit from it.
Even if the industry recovers, how many opportunities are left for Huawei? In an interview with the 21st Century Business Herald, people in the industry who did not want to be named believed that from the perspective of supply chain and operation, the possibility of lifting Huawei’s ban on chips in the United States this year is very small. If Huawei fails to obtain 5g chip supply and stops publishing and selling new products for one to two years, it will be in a state of shock for the rapidly changing technology industry. Therefore, it is a good solution to seek divestiture or other cooperation under the continuous change of market pattern.