Apple Is Looking Good Amid the Current Environment, IDC's Popal Says

Core Insights - Apple achieved record-breaking shipments in the latest quarter, but iPhone revenue of $49 billion fell short of estimates, raising questions about the disconnect between shipment success and revenue performance [1][2][4] - The iPhone constitutes over 50% of Apple's total revenue, marking a phenomenal year with the highest Q3 performance ever, despite economic and geopolitical challenges [2][4] - Apple experienced 4% growth in the smartphone market, outperforming the overall market growth of just over 3%, with positive growth noted even in China [4][6] Revenue and Market Performance - Greater China revenue significantly missed consensus estimates, coming in about 12% below expectations, indicating a need for Apple to reassess its reliance on this market [5][6] - Despite challenges in China, Apple maintains a dominant share in the premium smartphone market globally, with year-over-year average selling price (ASP) growth in iPhones [10][11] - The smartphone market is seeing a shift, with emerging markets showing strong growth, particularly in India and Turkey, while developed markets may experience flat growth [26] Competitive Landscape - Competition in China is intense, with strong loyalty towards local brands like Huawei, which poses challenges for Apple [7][10] - The introduction of foldable phones by Apple is anticipated to significantly impact the market, potentially transforming it from a niche segment to a more mainstream offering [20][21] - Consumer interest in Apple's foldable phones is growing, with nearly 40% of U.S. consumers expressing interest, indicating potential for market expansion [21] Future Growth Drivers - Approximately 500 million iPhones sold between 2020 and 2021 are approaching their upgrade cycle, which is expected to drive growth in the next two years [24][25] - Emerging markets are projected to continue driving growth, with strong double-digit growth rates observed in various regions [26]