Apple Becomes World’s Largest Smartphone Vendor
To the surprise of many, Apple posted record-breaking iPhone quarterly results for the holiday season — becoming the world’s largest smartphone vendor.
“Apple shipped 78.3 million smartphones worldwide and captured 18 percent market share in Q4 2016, rising a steady 5 percent annually from 74.8 million units in Q4 2015,” said Neil Mawston, Strategy Analytics’ executive director, in a release from the research firm.
“This was the iPhone’s best performance for over a year, as Apple capitalized on Samsung’s recent missteps. Samsung shipped 77.5 million smartphones worldwide in Q4 2016, dipping 5 percent annually from 81.3 million units in Q4 2015. Samsung lost momentum in the quarter as a result of its Note 7 battery fiasco. Samsung captured 18 percent share for the quarter and 21 percent share for the full year, its lowest level since 2011.”
Apple also stated it shipped more than 78 million iPhones during the 4th quarter of 2016, a stunning reversal of slowing iPhone sales and far above analyst expectations. Back in 2012, Samsung surpassed Apple to take the title of the world’s largest smartphone manufacturer, although the two companies have slipped past each other in the past.
In addition to increased unit sales, the selling price of the flagship iPhone 7 also increased to $695.
Apple’s CEO, Tim Cook, noted Apple’s service business also increased in the same time period, in a press release. The tech giant’s service business includes Apple Music, AppleCare, and the App Store. Mr. Cook said revenues from these divisions jumped over 18% over last year’s results. Apple’s stated goal is to double the size of its service business in the next four years.
Overall, Apple reported over $78 billion during the fiscal quarter, up from $76 billion a year ago. The company’s net income for the same quarter was down slightly at $17.9 billion.
For the coming quarter, Apple stated it expects revenue between $51 billion and $53 billion.