360° Coverage : Apples Outstanding Market Performance Hits Plateau

Apples Outstanding Market Performance Hits Plateau

Although enjoying a record-breaking sales volume for iPhone launch weekend, not all were pleased with Apple’s financial performance. Now it seems that a plateau is plaguing the company’s earnings.

Oct 16 2013, 11:25pm CDT | by

Apples Outstanding Market Performance Hits Plateau
Photo Credit: Getty Images

In just two more weeks Apple’s fourth quarter earnings will be reported. The new iPhone models had a very strong debut, but not the company is predicting that a plateau is looming. Although Apple went far beyond the $37 billion target that it presented to Wall Street, the company will stand financially quite where it was last year.

Back between 2010 and 2011, Apple showed a 65 percent growth in revenue. Last year, the revenue growth rate was 45 percent. That rate is in the single digits for this year, although Apple is still considered the most valuable company on Earth, having recently surpassed the Coca Cola.

As reported by Forbes, Apple ignored the suggestion by many to offer a less-expensive iPhone, instead releasing the iPhone 5S and 5C models. The 5C is only marginally cheaper than the 5S. Several reports claim that this pricing model failed to do much in expanding the company’s market share, although the 5S is doing quite well.

iPhone sales comprise about 50 percent of the company’s revenue. IPhone growth is required for Apple to achieve growth. IPhone sales, although still high, are slowing.

The overall growth of smartphone demand has been astounding for the past two years, having doubled during that time. The periodic decline in sales that Apple experiences doesn’t happen for other smartphone vendors.

It was Apple that basically made the tablet market.  In only the past two years the company has sold over 125 million iPads. However, heated competition is being given Apple in the tablet market from companies offering less expensive produces, such as Samsung, Google, as well as Amazon with its Kindle Fire. For Apple, lowing prices on the iPad resulted in limited revenue growth. Plus, the quick saturation of the iPad means Apple is challenged to grow any further in the tablet market.

 
 
 

<a href="/latest_stories/all/all/25" rel="author">Bijon Kumar Pramanik</a>
Bijon Kumar Pramanik is an experienced technology writer working since years in the consumer electronics field.

 

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