Although the company has admitted to facing some supply constraints in recent months, Apple has proven to be quite resilient in its annual revenue growth.
Apple as a trusted brand
Apple is undoubtedly one of the leaders in the technology and innovation space. This comes as no surprise, considering that people all over the world aspire to own Apple products because they are a sign of success and were previously only owned by the elite and wealthy. It can be said that Apple has managed to achieve more than just dominance in the tech industry, it has attained global success and prominence through brand recognition and building a legacy over the years. Although many were sceptical about the direction that the company would take after the passing of its co-founder, the acclaimed Steve Jobs, it seems that there was no need. Apple has continued to remain at the top and roll out annual releases, much like when Jobs at the helm. In 2021, Apple launched its iPhone 13 range, amongst other notable devices.
Achieving such global success is not something that happens overnight, particularly not in the technology industry. The industry has many players who are all trying to gain market share, fortunately, not all fall under the smart devices segment. Whether one’s stake in the technology sector is through software, gaming, or simply creating platforms to encourage people to pursue financial goals through forex, commodities or trading CFDs online, there is likely to be a high level of competition and new entrants looking to build a name for themselves.
While it is known that tech and online operations have been very dominant in recent years, this was accelerated by the global conditions of 2020. The tech industry became the saving grace for many during this time. However, when one looks at luxury products such as smart devices, many people could not purchase them due to financial constraints. In its most recent quarterly results for 2021, the company’s revenue did not meet up to Wall Street expectations. According to reports, iPhone sales increased by 47%, but that did not live up to expectations. The current CEO, Tim Cook attributed this to supply constraints. Despite this, the company’s overall revenue increased by 29% on an annual basis, whilst there was an increase across its product categories as well. While there is still some uncertainty, the company has expressed confidence in solid year-on-year revenue growth, which many are waiting to see confirmation of.
Looking ahead, Cook admitted that although Apple has been facing several manufacturing disruptions, conditions seem to be improving. It is believed that there has been an increase in the demand for the new iPhone range, which it is actively working towards addressing. Moreover, with a gradual improvement in global conditions, the demand for Apple products has also increased. Annual revenue for its fiscal 2021 increased by 33% to $366 billion, compared to 2020. Other than iPhones, there is said to be an increase in Apple’s services segment, such as licensing and subscriptions, amongst others. This suggests that although there have been some turbulences, Apple is proving to be quite resilient amid the global conditions, which is further proof of the company’s staying power.