Net Sales of Iphone 2015-2019.
Iphone is the leading product from the house of Apple. For several years consistently, it has remained the biggest source of revenue for the brand accounting for more than 60% of its net sales. Apple has steadily been improving its iphone both in terms of technology and aesthetic appeal. In 2017 and 2018, the company was able to achieve impressive iPhone sales. However, 2019 opened on a slightly weaker note. In light of the financial results of q1 2019, Apple revised its revenue guidance for the second quarter to between $55 billion and $59 billion and managed to achieve $58 billion in net sales in the 2nd quarter. In the 3rd and 4th quarters respectively Apple generated $53.8 and $64 billion in net sales. iPhone sales improved with the release of the iPhone 11. However, the company’s net revenue from iPhone still remained lower than the previous year. Total revenue from iPhone was $164.9 billion in 2018 which came down to $142.4 billion in 2019.
Competition in the smartphone industry has grown a lot and the number of smartphones in the premium segent has also increased. Apple invests a lot in research and innovation every year and the iPhone has continued to grow into a more robust and attractive phone with each passing year. Iphone Xs and Xr are loaded with several mind-blowing features. The release of iPhone 11 during the fourth quarter has led to growth in sales.
However, lower net sales in q1 2019 left investors worried. Apart from the high competition and pricing, Tim Cook cited a slew of factors affecting iPhone sales around the world. People are not upgrading to the latest models as quick as they once used to. According to Tim Cook, there are many factors that led to lower sales in the first quarter of fiscal 2019. The rising trade tensions between U.S. and China are also a reason that sales of iPhone in China is affected. However, the picture is bright at points and Apple is also focusing on other products and services apart from iPhones.
Apple CEO Tim Cook noted, “Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.” Apple is still strong and iPhone as attractive as ever.
Unit sales of iPhone and revenues 2015-2019 (quarterly data in $millions).
|FY2015||Units Sold||Net Sales (Millions)|
|FY2016||Units sold||Net sales in millions|
|FY2017/quarter||Iphone Units sold||Net sales in millions|
Apple reclassified its revenues for 2018 in connection with the adoption of the new revenue accounting standard.
|FY2018/Quarter||Iphone units sold||Net sales in millions.|
|FY2019||iPhone Net sales in millions.|
iPhone sales were the strongest in 2015. In 2014, Apple achieved net sales of 169,219 iPhone units which grew to 231,218 in 2015, the highest number of iPhone units Apple has ever sold in an year till now. Since then, Apple iPhone sales were the best in the fiscal 2018, having grown by 18% compared to 2017. The total number of units sold was only 217,722 but the revenue from the sales of iPhone was the highest till date at $164.9 Billion. Even in 2015, when Apple had achieved the highest unit sales, the total revenue for the fiscal year from iPhones was only $155 Billion. Consolidated Net sales for the year 2018 were $265.6 Billion.
Every year, the first quarter has been the strongest for Apple. However, the scenario was different in 2019. Net sales of iPhones (in q1) returned to the 2015-16 levels. Compared to the same period last year, Apple’s net sales of iPhone remained around $9 Billion lower. It showed net sales would remain lower in fiscal 2019 compared to 2018. Even if iPhone sales were not totally disappointing, they remained lower than expectations in the first quarter of 2019. Again in the second quarter, revenue from iPhone sales was $6.5 billion less than the same quarter previous year, having fallen from $37.56 billion in the second quarter of 2018 to $31.05 billion during the same period in 2019. During the third and fourth quarters as well Apple’s revenue from iPhone remained lower compared to the previous year. Apple’s net revenue from iPhone during the fiscal 2019 came down to $142.4 billion compared to $164.9 billion in 2018; yoy decline of 14%. Total revenue of the organization for 2019 was $260.2 billion against $265.6 billion in 2018; yoy decline of 2%.