Apple’s growth can be attributed mainly to the launch of the iPhone SE, even though most of its markets were in the middle of a pandemic-induced blockade by Covid-19.
Apple announced its results for the third quarter of 2020, registering an 11% growth compared to the same period last year. In addition, it is the only major smartphone brand that grew in the quarter, according to research firm Canalys. The results are surprising, as they are in the middle of a pandemic. So how did the tech giant grow when the industry itself stopped?
Apple’s growth can be attributed mainly to the launch of the iPhone SE (read our review here), even though most of its markets were in the middle of a pandemic-induced blockade. Apple’s cheapest iPhone became available as China, one of its biggest markets, emerged from the blockade. The more affordable price, coupled with the pent-up demand generated by the need to have a good device connected to work, made the phone a great success in China. Canalys says trading deals and other offers have also helped Apple increase volumes. As a result, Apple’s market share in China grew by 35%.
Apple generally does not have a new iPhone for the third quarter. Therefore, iPhone SE clearly helped to show better numbers in the quarter compared to last year. The phone can also help you show good numbers in the next quarter, with markets like India entering the festival season, in addition to big sales online.
The new homework around the world also appears to have helped Apple’s service business, which CEO Tim Cook said has grown in all regions. Apple’s music, video and cloud services are showing a peak, along with Apple News and Apple TV +. However, AppleCare’s numbers have declined as customers have failed to bring devices for repairs in many parts of the world.
Working from home is also helping Apple sell more Macs and iPads around the world, especially in markets like China. The renewed emphasis on online classes can also boost this segment, as the iPad is already a recommended educational device in many countries and Apple also has an advantage when it comes to academic content services.
One of Apple’s pain points in recent years has been its inability to get many users of old iPhones to upgrade. The $ 399 iPhone SE also appears to have prompted many of these users to finally switch to a newer phone.