Apple’s difficulty causing it to wane lately has been due to its reliance primarily on revenue from iPhone sales, which has been declining for several quarters – as part of a global trend in the mobile market. Earlier this year, the company stopped reporting the number of iPhones and other devices it sells out of the quantity it produces – probably due to the downturn in iPhone sales – but it continues to report its revenue from sales of each device category. Apple also showed weak iPhone sales this quarter, down 12% on revenue of $ 26 billion – slightly below analysts’ expectations. However, the company has shown revenue growth from the rest of its divisions.
Thus, Mac computer sales brought in $ 5.8 billion, compared to $ 5.2 billion in revenue a year ago, and iPads sold $ 5 billion, up from $ 4.6 billion a year ago. In addition, sales of wearable appliances, home appliances and accessories brought in $ 5.5 billion, up from $ 3.7 billion a year ago. Services division revenue – which includes Apple Music streaming service, Apple Pay and other payment services, and is increasingly becoming a company-focused area – also stood at $ 11.46 billion, showing growth of 13% over the same quarter, with revenue still at $ 10.1 billion No suitable replacement for iPhone foundIn the coming months, Apple is expected to launch additional services it has announced, such as its original TV content service Apple TV + and the video game service at Apple Arcade. The credit card the company is issuing with Apple Gold’s Goldman Sachs bank is expected to come out next month, according to company CEO Tim Cook, who confirmed it during an investor call and said thousands of Apple employees had already tried Apple Card.Cook also said during the investor call that by 2020, annual service category revenues will reach $ 50 billion, and Bloomberg Intelligence analyst John Butler wrote after reports released last night that “strong sales” in non-iPhone sales categories are encouraging, “because Emphasize the company’s progress in diversifying revenue and reducing its dependency on the iconic device. ” Butler also noted 48% growth in the wearable, home and accessories products category, which he attributed primarily to Apple Watch’s “Beautiful Sales.”However, wearable products such as Apple Watch and the AirPods headphones require the user to have an iPhone to operate. Similarly, many of the services offered by the company are limited to iPhone owners only.
When asked during the call whether Apple plans to make its services at least dependent on the iPhone, he did not answer directly, instead referring to existing examples of such services – such as the possibility of purchasing the company’s services through Apple TV and the availability of Apple Music on Android devices.Therefore, it seems that the iPhone is still essential for the company, although for the first time since 2012 less than half of the company’s revenue came from iPhone sales. The difficulties surrounding iPhone sales are due in part to the fact that users are in no hurry to upgrade their handsets due to little innovation in the smartphone market. This is not expected to change for Apple until 2020, when the company is reportedly launching 5G models for the first time, as well as local competition in the Chinese market, which is also joined by US brand avoidance following the trade war.The decline in sales in China is moderatingThe company’s sales in China this quarter were $ 9.2 billion. Although this is a 4% decline, it is an improvement over previous quarters where the decline was over 20%. This may indicate that Apple’s strategy of lowering prices in China is bearing fruit. According to company representatives, efforts of this kind have benefited not only sales in China, and Luca Mastri, CFO, said the plan with which the company – which allows to replace old iPhones with new ones for discounts and benefits – has enjoyed great momentum that has led to Five more replacements compared to the previous year.Apple’s revenue forecast for the next quarter, $ 64-61 billion, is above its $ 61 billion revenue analyst forecast. It may also be optimistic about the new iPhone model sales, which are expected to be launched in September and start selling towards the end of the next quarter.
In the meantime, the effort to diversify the company’s revenues also weighs on its profit margins. The company’s operating expenses grew 11% in the current quarter, partly due to record $ 4.3 billion in research and development expenses. S&P Capital IQ’s operating profit margin was 21.5% lower than a decade ago Apple, Samsung or maybe even WhatsApp: Who is Israel’s leading technology and digital brandThe impossible for them, the impossible without them: The criticism of the technology giants is increasing, but their brands are still strong. These are the strongest brands in Israel The most cliché in the high-tech industry is said by founders and other employees: “We make the world a better place.” It is already understood today that this statement does not necessarily stand the test of reality, and that the high-tech companies – intentionally or unintentionally – also do damage. Facebook has long been considered the lifeline of democracy, Google knows how to manipulate search results, and Apple can hurt app developers through its store and launch competing apps. In general, technology and innovation are improving humanity, but the rapid changes and new platforms are creating challenges that technology companies have not known or did not want to address.Criticism of the tech giants has intensified over the past two or three years, but it seems that in the last year primary actions on the ground – the more active politicians – are beginning to emerge, and the debate ahead of the 2020 elections includes concrete calls for the dissolution of companies; Regulators in the US, usually lagging behind their European counterparts, have begun to divide their work and explore competition and privacy issues.
The public seems to be increasingly understanding the problem by being the commodity. He gets supposedly free services, but he pays for his most private information. He needs to have a high level of credibility with these companies, but the truth is that he has developed such a dependency on them that he can’t abandon them without compromising his quality of life. Without being able to quantify the injury, users assume that the benefit they receive is higher. That’s also why, despite all the criticism and concerns about privacy, their brands are still strong. In other words, the power of the giants is so great and their services useful and widespread, that even a number of secretions are only slightly scrutinized their image. It could very well be because Israel has not yet revealed a major event related to giants – no impact on the election campaign, impact of private information leakage, large-scale Pike News or a problematic video circulated on social networks. People are aware of the problem, but relatively do not face the consequences. The fact that tech giants are undermining the power of governments around the world also does not affect the public’s perception of them.And maybe the story in general – the tech giants are very wealthy and have a lot of lobbyists and public relations professionals. A Bloomberg investigation released this month revealed that Facebook is conducting public opinion polls. The polls are conducted similar to political campaigns, and the results affect the conduct of the senior public. Thus, respondents to the survey were asked to rate various character traits of Mark Zuckerberg, such as maturity, honesty, and shared values. What’s more, they were asked to rate him compared to other CEOs, to rate various speeches he made, and to determine how much he was loved and recognized compared to characters such as Oprah Winfrey, Pope and Jimmy Fallon. Remember this inquest as you read the following pages.1. Samsung2 in the overall rankingThe squeaks do not affect the Israeli customerThe battle between Apple and Samsung has already (relatively) been decided in Israel, and more people are buying Korean company smartphones. Now the move is perfect – not only did Samsung overtake Apple in the brand index (much like last year), this year it also came in first among all tech companies. The Israelis are addicted to Wetsap, depending on Google, but at the end of the technology brand that cuts the biggest coupon is their smartphone maker.
Samsung is considered a winning brand in Israel, despite a particularly embarrassing event that has occurred in recent months – the launch of its folding smartphone was postponed due to a serious malfunction – in some devices the screen stopped working after a day or two of use. After several years of camera-level design and technological improvements or device speed, Samsung was the first of the big companies to introduce a next-generation smartphone device. The price of a Samsung $ 2,000 female was horribly expensive, but her image of innovation was top.But then came the PR campaign, during which the mishap was discovered. If the malfunction was detected in Samsung’s internal quality tests, fine, but it was discovered by a technology journalist who tested the device as part of Samsung’s PR campaign. Precisely in an era when smartphone sales are declining, Samsung could have left competitors behind. And yet, the injury to the brand is not the same as it was in the explosion of Noot 7 devices, which managed to lead to cancellation of flights around the world for fear of a flare-up – a case from which Samsung managed to recover.Samsung has been reporting weaknesses in its financial results in recent months, in part due to growing competition in the smartphone market. All these do not really affect the Israeli customer. Google5 in the overall rankingLost its high-tech debutDid the criticism of the tech giant give its cues to Google? The company, which every digital user in the Western world needs its products every day, is still at the top of the rankings, but it has lost its high-tech debut to the Korean Samsung company. About two years ago, Google was the top ranking overall.On the narrow consumer level – new products and services – nothing significant happened to Google in the past year (except for the release of a new smartphone, Pixel, which did not sell in Israel). But around the company, there was a lot of mess – from criticism of the excessive power of tech giants, including Google, to protests of workers. While Facebook has absorbed the bulk of the fire, the combination of Google’s extensive information about users and its advertising activities engages regulators and politicians. In addition, the YouTube site has also been heavily criticized for the problematic content that can be viewed.
Google likes to emphasize the good things the company is doing, and at the latest developer conference held in May, the company introduced technologies for people with disabilities, developed in Israel. Over the past year and a half, Google employees have protested several times, such as attempts to whitewash sexual harassment cases. Following the protest, Google decided to change the relevant procedure. Workers were also protesting a contract with the Pentagon.The Silent Revolution: A Substantial Change in Credit Structure for the Israeli Business SectorBut most of all – awareness of privacy issues is growing, and users are more aware than ever of how companies operate, their ability to use the information they keep users, and the manipulations they do to improve their status – all through the use of users’ private information. Dark in the overall rankinThe iPhone is no longer everythingFor several years, Apple was one of the two most popular smartphone manufacturers in Israel, along with Samsung. About a year ago, in August, an insignificant turnaround was recorded – Xumi’s smartphone sales overtook Apple’s iPhone sales, according to market research firm GfK. Apple has quite a few loyal customers in Israel who do not understand how to get along without an iPhone in their pocket, but the trend is there – customers are no longer willing to pay the amounts that Apple requires, which have already bypassed the $ 1,000 threshold.The story isn’t really just in Israel – in September, Apple launched three new iPhone models in a glittering event, but they didn’t really include an innovative line in terms of design or features (which didn’t stop the company from raising prices). That’s one of the reasons why iPhone sales were hit, as CEO of Tim Cook acknowledged in early January, when the company missed its revenue forecast for the first time since the iPhone was launched. Cook admittedly blamed the trade war, but admitted that iPhone sales were also hurt in Western countries .
Apple is making efforts to reduce its dependence on its iPhones and actually wants to become a service company – taking Apple Music’s business model and replicating it into other areas, such as Apple News and Apple TV +, its upgraded TV service. The launch event for these services was Hollywood Glam, with nearly half of the event being devoted to a star-studded and celebrity parade – from Steven Spielberg, through Oprah Winfrey to Jennifer Aniston, who took the stage to showcase projects to be included in the new original content service. Apple hopes to keep the iPhone brand that way, but perhaps more so – wants to show that its brand is strong enough without it. Watsap18 in the overall rankingYou have to fight Pike News The Wetsap Messaging app is one of the most popular apps in the Western world, probably in Israel thanks to the Wetsap groups of preschool parents, neighborhood residents, work and reserve. It is precisely the paucity of innovations that preserve Wattsap, which at least on the face of it seems that its acquisition by Facebook has not yet affected the app. The image crisis that Facebook is in has also not really affected Wetsap. While the founders of Wetsap left the company and continued to go against it in the past year, the absence of a hidden algorithm makes it harder to blame the company itself.