[ad_1]
Apple (NASDAQ: AAPL) delivered resounding results for the first quarter of fiscal 2021, which ended on December 26, 2020, thanks to the massive success of its 5G-capable iPhone 12 lineup.
The smartphone giant recorded its very first quarter with more than $ 100 billion in revenue, with revenue increasing 21% from the period a year earlier to reach $ 111 billion. Apple’s iPhone revenue jumped 17% from the period a year earlier to nearly $ 66 billion.
The success of the iPhone 12 is not surprising. Apple’s attractive pricing has given its large installed user base a good reason to upgrade. More importantly, the company can maintain its formidable iPhone growth momentum, and it looks poised to dominate the rapidly growing 5G smartphone market.
Image source: Getty Images.
IPhone 12 makes waves in the 5G market
The launch of the iPhone 12 models propelled Apple to the top of 5G smartphone sales just weeks after the launch. The devices build on their initial success and have helped Apple extend its lead at the top of the smartphone sales chart in the fourth quarter of 2020.
IDC estimates that Apple shipped 90.1 million iPhones worldwide in the fourth quarter of last year, up 22.2 percent from the previous year period. This helped Apple take 23.4% of the global smartphone space in the quarter, up from 19.9% of the market it held a year ago.
Second place SamsungThe company ‘s shipments grew at a much slower pace of 6.2% compared to the prior year period. The South Korean giant ended the quarter with shipments of 73.9 million units, and its market share increased only 30 basis points year-over-year to 19.1% .
Counterpoint Research estimates that 5G devices accounted for 34% of global smartphone shipments of 396 million units in the fourth quarter of 2020. This was a huge improvement over 5G smartphone shipments of just 24.1 million units in the past. first quarter of 2020, when Samsung dominated the market with just over a third of the space under its control.
Apple therefore edged out its biggest rival in a quarter in which sales of 5G smartphones took off. Plus, don’t be surprised to see the iPhone maker widening the gap in 2021.
Why Apple’s 5G Dominance Should Continue
Two specific factors are helping Apple grab a good chunk of the 5G smartphone market. First off, the company has priced its new devices well, with the entry-level iPhone 12 mini starting at $ 699. The standard iPhone 12 starts at $ 799, followed by the iPhone 12 Pro at $ 999 and the Pro Max at $ 1,099.
These prices are competitive with those of the latest flagship devices recently launched by Samsung. The Galaxy S21 5G starts at $ 799 in the US, followed by the S21 + 5G at $ 999 and the S21 Ultra 5G at $ 1,199.
Second, Apple has a huge installed base of iPhone users waiting to upgrade to a 5G device. Daniel Ives of Wedbush Securities estimates that a third of Apple’s billion-strong iPhone installed base is in an upgrade window, which could take iPhone shipments to 250 million units in 2021. That would be a good jump from Apple’s 206 million iPhones. would have shipped in 2020, according to IDC estimates.
A third-party study predicts that Apple could control 35% of the 5G smartphone market in 2021 thanks to these benefits. That would be a big deal, as 5G smartphone sales are expected to take off this year, with Strategy Analytics forecasting 150% growth over shipments of 250 million units in 2020.
Samsung, on the other hand, is expected to struggle in 2021 despite the 5G surge. The company is only expected to ship 26 million units of its Galaxy S21 devices this year, indicating that Apple may remain the top dog in the 5G smartphone space.
Overall, the iPhone maker can support the formidable growth it achieved in the last quarter by beating its closest rival and capturing a greater share of a burgeoning 5G smartphone market, making it Apple is one of the most important 5G stocks investors should consider having in their portfolios.
[ad_2]
Source link