iPhone 7 and beyond…..
Apple recently released figures to their stock holders stating that iPhone market growth is slowing and expected to continue on this trend for the foreseeable future. For most companies, this is seen as a very negative thing, but for Apple, not so much.
Apple has simply sold so many iPhones, infiltrated and dominated so many markets, that it is impossible to sustain such growth. Even the most greedy shareholder must use an ounce of common sense to know this! The fact is, Android is the biggest mobile OS on the planet but iPhone sells the most single units, with by far the biggest profits.
So with the iPhone 7, what can shareholders expect?
Well, sooner or later, Apple will have to stop breaking release day sales records. Every year they smash the last record, however no matter how you juggle the numbers, this cannot continue. And you know what? That’s fine!
Apple will continue to post huge profits and keep the share prices high, they are simply too well-run a company to have a sharp decline, for the foreseeable future anyway. Coupled with massive cash reserves, Apple could easily handle a slow sales period, although with the iPhone 7 on the horizon, demand is still as high as ever.
What will iPhone 7 bring? Likely more record breaking sales, a (mooted) hardware redesign will ensure that. I can see the 7s (2017) possibly being the first non-record breaking sales opening for an iPhone, however Apple continue to prove its’ detractors wrong.
Whatever the case, shareholders should not worry and look forward to healthy profits going forward.