Last month Apple published the results of a financial quarter ended 31 December 2016. The income of the company for the period amounted to $78.4 billion — $2.5 billion more than a year ago, and $1 billion more than analysts expected, the Wall Streer.
“We sold to 78.3 million iPhones this is our best result, we broke the record — boasted Apple CEO Tim cook. Of course, he said that this achievement was only possible thanks to the iPhone 7 and iPhone 7 Plus — the flagships of the Corporation in 2016.
The sudden success of these products on first glance seems puzzling. Immediately after the presentation to address Apple sounded three questions:
Then he opened two more instrumentals. First, the glossy iPhone 7 too fast and easily scratched. Second, the model in the most popular color for a very long time were scarce — the company proposed to leave the pre-orders, but has not said when the devices will take to the shelves. In the end, people were waiting for the new weeks.
From all sides the iPhone 7 look, if not failure, then at least mediocre. The General mood in the IT press and among fans of the brand were such: all in one tone wrote that the cunning Apple holds a few surprises for the iPhone 8 that will be released this year.
However, the latter statement may be true. But the thesis of mediocrity 7 iPhone breaks sales data: if Apple has set a record, then mission accomplished — other metrics here.
In the publication life decided to find out why the iPhone 7 was so popular.
1. The failures of competitors
Apple is always very well book a time for presentation by September Android flagships, shown at CES (in January) and MWC (March), already slightly out of date. But most importantly, last year Tim cook unexpectedly received a gorgeous gift scandal with explosions Samsung Galaxy Note 7. Thus, the only serious competitor to the iPhone 7 has become a powerful Google Pixel, but its manufacturer is unable to cope with demand (especially outside the us).
The result is natural: the key for the US market, Apple has gained 10% of revenue. This is largely possible due to the fact that America is still not poured cheap smartphones from China. For the same reason Apple has gained 20% of its revenue in Japan. These achievements helped to offset a 12 percent drop in revenue in China.
This reason can be called natural, but there is logic. Statistics show that typically, people who prefer iOS, update smartphones every two years. Accordingly, cyclicity implies either updates with the regular version at the usual (from iPhone 4 to iPhone 5) or S-version S-version. Standard sixth iPhone was outselling the iPhone 6s, — therefore, people who are prepared to change “six” to “seven”, it was initially much.
And Tim cook said about the record number of “defectors” from the Android. Apple CEO did not mention the exact data, but we can assume that in iOS-faith addressed to those users of Galaxy Note who waited and did not wait for the new phablet from Samsung.
3. Phenomenal marketing
Before Apple so heavily invested in advertising, but now Tim cook has no regrets of available funds for installation of billboards. Photos with a signature “Shot on iPhone 7” is constantly occur, even in Russia, and in the United States from these banners do not escape.
The idea is to recognize a genius: Apple had originally focused on the cameras in the iPhone 7 and iPhone 7 Plus, and then demonstrated what they are capable modules in the new smartphones. Just three words and one picture was enough for those users for whom the camera is important in a device, have made their choice.
4. Death iPad mini
iPad mini very annoying Tim cook, from a financial point of view: it sold well, but took away market share from other products and did not bring such profits as they. It is easy to see how a reluctant cook updates the 7.9-inch tablet in recent years — now this gadget is in a state of clinical death.
But iPhone Plus (all three generations, including “seven”) gave the best quarter in history: people deprived of budget alternatives, so they are forced to combine smartphone and tablet in one housing.
5. Established supply
Fall iPhone really hard to run to the shops, but for the holidays, Tim cook decided the question, and forced consumers to forget about the word “deficit” for the entire Christmas period. So CEO of Apple figured out from a problem when the iPhone 6s has disappeared from the shelves in the first days of December.
In General, according to the authoritative journalist and podcaster John Gruber, cook brilliantly coped with the task of optimizing cost of sales (a measure that reflects all the costs of production and distribution of goods). Therefore, the seventh iPhone in any case color long will be available in either the official store.
6. “Long” block
Duration of most financial quarters are 13 weeks, but sometimes this period will calendar is increased to 14 weeks. This is what happened today, and meticulous journalist, Jeff Johnson from Developer of Underpass found that if the block was standard, then Apple would fix the “minus” in comparison with the same quarter of 2015.
What is the result?
Of the six reasons listed above, two are associated with good luck (the duration of the quarter and explosions Galaxy Note 7), one with the habits of the buyers (update every two years) and three with managerial talent Tim cook.
But the iPhone 7 really has been a very controversial device. But the iPhone 8 will be the real test for Apple and for Tim cook: now with this smartphone due to many expectations that disappoint potential buyers does not. Especially this year, it is unlikely that the main competitor will again explode flagship smartphone.