Apple Aims At Tapping Emerging Markets
It appears that the saturated smartphone market with the emerging markets’ regulations and restrictions had sent Apple Inc. to struggle in the robust growing tech industry. However, the company puts effort to face these challenges despite declining margins and slump in the average selling price (ASP) of iPhones.
Apple Inc. announced that the iPhone ASPs have seen declines from $662 in the third quarter of fiscal year 2015 to $595 in the third quarter this year. The tech giant had faced criticism as ASPs dropped since the launch of its iPhone SE 16GB in March for $399.
Given that the company aims at tapping into emerging markets, involving a conceivable iOS price, consumers belonged to the target segments felt it was expensive though it would mean a lower margin for the tech giant. Having said that, iPhone SE further expands the iOS ecosystem.
Meanwhile, Apple Inc posted a $42.4 billion sales for the third quarter, topping the analysts’ consensus estimate of $42.09 billion and suggested a 14.5% year over year (YoY) drop. The company’s stocks have seen a 7.9% rally during Wednesday’s session, followed by its financial earnings report on Tuesday.
With the given rally in the stock, it appeared as the largest intraday increase since January last year, making the Apple stock the third-largest gainers of the day on the S&P500 Index.
The iPhone SE was designed to catch new clients’ attention to the iOS ecosystem, suggesting a move to pay off as sales have jumped since the model’s launch in March. In contrast to analysts’ concerns, gross margins reported a broadly YoY decline in the third quarter, posting 38% this year compared to 39.7% during the same quarter in the prior year.
Apple’s Chinese competitor, Huawei Technologies Co. advanced ground in the smartphone market globally, which sent the tech giant’s iPhone flat. In addition, a tight competition route with Samsung Electronics Co.
Huawei’s head of consumer products Richard Yu mentioned that it would ship about 140 million smartphones this year, suggesting a 30% YoY rally.
Subsequently, CFO Luca Maestri said that Apple Inc. has failed to meet iPhone SE’s demand during the quarter, as it has an immense response, but he also said that the company had stored enough to reach demand in the next quarter.
Leak iPhone 7 Release Date
Everyone is aware that the annual update schedule of Apple will fall around September, but has remained unclear on the exact iPhone 7 release date.
VentureBeast tech reporter, Evan Blass has “confirmed” on Twitter that iPhone 7 pre-orders will begin on September 9, following the release date of September 16th. Thus, it implies that Apple is expected to schedule the phone’s official announcement for September 7.
Exact details of iPhone 7 remained vague, but it would clearly have a dual camera and that it would not feature a traditional headphone jack. However, there were speculations that iPhone 7 won’t actually be called the iPhone 7 rather it could be called the “iPhone 6SE,” according to reports.
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