iPhones Are Still Apple’s “Core” Product

iPhones Are Still Apple’s “Core” Product
Daniel Johnston

5 months ago2 mins

What’s going on here?

While the smartphone market is dialing down, Apple’s iPhone is holding firm.

What does this mean?

The global phone market has been on the slide lately, with data from Counterpoint Research showing sales fell for eight straight quarters. But demand for $600-and-up models is growing, and Apple, the maestro of upmarket handsets, is reaping the rewards. That’s let the firm swoop in and reach record market share across new markets – like India, for example, where Apple’s growth hit 50% just last quarter. That kind of performance might be why the company’s planning to keep its iPhone shipments steady, despite the broader industry’s issues. And with some price hikes reportedly coming soon, Apple’s cash register might just ring a little louder before long.

Smartphone global market leaders

Why should I care?

The bigger picture: One bad apple.

As the world’s most valuable company, Apple has the global economy hanging on its every quarterly report. Its sprawling supply chains stretch from Uncle Sam’s backyard to the bustling factories of China and Vietnam. So when Apple manages to keep its head above water in the choppy seas of the smartphone market, you can bet there’s a collective sigh of relief echoing through the halls of its suppliers like TSMC and Foxconn – and the millions they employ.

For markets: Tech-tonic shift.

US tech giants’ stocks have been on a tear this year, so much so that the tech-heavy Nasdaq 100 resorted to a “special rebalance” to reduce their massive sway over the index. This tweak – which came into effect on Monday – reduced the weightings of the biggest tech firms from a hefty 50% to a more balanced 40% of the index. But while the move reduces the risk of these heavyweights pulling the market down with them, it also means the rest of the index will have to pull its weight to keep the Nasdaq’s momentum going.



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