The 2019 edition of Apple’s yearly launch event begins just a few hours from now. But with falling revenues from iPhones and a shift in focus towards services, this year’s event may be more interesting than any others. To make sense of whatever Apple announces later, here’s a look at how the company performed over this past year.
Double-digit growth in India
In its quarterly earnings report published in June this year, the company said it saw double-digit growth in India and Brazil. “In emerging markets, we returned to growth in mainland China, grew strong double digits in India and in Brazil, and we set new Q3 records in Thailand, Vietnam and the Philippines," Cook said.
While that of course is a positive for Apple, the company doesn’t have a very big market share number here, which makes the “double digit growth" less impactful than it may sound. According to Counterpoint Research, Apple had a 1.2% market share in Q2, 2019.
India is not amongst Apple’s top countries yet. The US, China, Japan, the UK and Canada are the top five countries for iPhone shipments, according to research firm Canalys.
On the other hand, with the Indian government relaxing its local sourcing norms recently, the company could be looking for an even better year going forward.
iPhones sold this year
According to Canalys, the company shipped 36 million iPhones in Q2, 2019. This, the firm said, is a 13% year-on-year fall, which is in line with the fact that the iPhone dropped to less than half of the company’s quarterly sales as reported in its quarterly earnings in June.
However, the company’s newest model — the iPhone XR — performed above many expectations. According to the Canalys report, Apple shipped 47 million units of the iPhone XR between its launch in October 2018 and June 2019. It shipped 20 million and 28 million units of the iPhone XS and XS Max, respectively.
While the iPhone XS and XS Max may have shipped in lower numbers, they account for 59% of Apple’s shipments between Q4 2018 and Q2 2019, according to Canalys. In the same period, Apple shipped a total of 87 million iPhones (XS, XS Max and XR), a 26% fall in terms of shipment numbers against the previous quarter.
Interestingly, older-generation iPhone sales increased by 12.4% to 61 million units, the Canalys report states.
Top smartwatch seller
While iPhones may be struggling worldwide, Apple leads the market when it comes to smartwatches. Research firm Strategy Analytics’ reported in August 2019 that the company owned 46% of the global market share.
However, the smartwatch market doesn’t have the numbers that smartphones do. According to the Strategy Analytics’ report, overall shipments in this market grew by 44% to 12.3 million units in Q2 2019.
Apple recently started focusing more on services, promoting content services such as Apple Music. Experts have noted that the company may be betting on services for its future growth, so tonight’s event is expected to have a lot on that front as well. The company expects to double revenues from its services business by 2020 (compared to 2016), according to CEO Tim Cook.
While Apple is expected to announce three new iPhones this year, with a “Pro" version for the first time, Apple has also shifted its focus to the services business recently. So, this year’s event will not just have new iPhones and Apple Watches, we expect to hear more about Apple’s plans for the services segment.