It hasn’t been the happiest of years for Apple Inc. (NASDAQ:AAPL) so far, with revenue figures for the consumer electronics giant certainly less than ideal. This led to a fall Apple’s share price, as the markets responded to the company’s earnings information by questioning whether it has the potential to grow its business in the short to medium-term.
But behind this apparent gloom remains some very solid business fundamentals. Apple Inc. (NASDAQ:AAPL) remains the biggest global brand according to both Forbes and the annual Interbrand list. Forbes also rates Apple as the company with the biggest market cap in the world, and the company produced profit figures that were second only to the oil producer ExxonMobil.
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Thus, the outlook for Apple could hardly be considered entirely negative. The fact is that both the iPad and the iPhone, their two flagship devices, are hugely successful, and other less mass market product lines have also been successful. Apple is also apparently branching out into new areas as well in due course, with the iWatch a rumored product release for quite some time.
Apple iPhone success story
It shouldn’t surprise us too much, then, that Apple Inc. (NASDAQ:AAPL)’s share of the consumer electronics retail market has grown hugely over the last seven years. According to figures released by Euromonitor International and published by MarketWatch, since the iPhone first hit the high street, Apple’s market share among specialty electronics retailers has increased nearly four-fold from 3.8 percent (with $3.5 billion in revenue) to 15 percent ($15.6 billion) just six years later in 2013.
Interestingly, the total sales in this retail sector have actually fallen during the same period, and not based on inflation-adjusted figures. From a peak of $109.9 billion in 2007, sales fell to just $95.9 billion last year. While there could be several possible reasons for Apple’s success, it has been suggested that their strategy of targeting the higher end of the market and providing exceptional customer service has particularly paid off. Meanwhile, other more mundane electronics retailers have inevitably suffered at the hands of big online stores such as Amazon.
Apple has been so successful in attracting people to its brand, that it was actually able to report over $20 billion worth of total retail store revenues during the 2013 calendar year. Obviously this contrasts slightly with the Euromonitor figure, but regardless of which figure we believe, it nevertheless indicates that Apple has had huge success in establishing itself as a premium retail outlet.
iPhone 5s sells like hot cakes
Despite continual predictions that the market for smartphones has matured to a great extent, and it will naturally slow down due to easing demand, Apple Inc. (NASDAQ:AAPL) continues to sell its iPhone 5s in extraordinary numbers. While Samsung’s Galaxy S products managed to shift around 100 million units, Apple was significantly more successful, selling in the region of 50 percent more products at a similar price point to Samsung.
Although many market analysts continue to point to Apple Inc. (NASDAQ:AAPL) as a company likely to suffer from a lack of growth in the mobile sector, the company continues to produce relentlessly impressive figures. It seems that for now Apple’s premier position in the consumer electronics marketplace is ensured.