Apple Event: Huawei's Opportunity Arises, While Apple Continues to Dominate
**Introduction**
Last night, many of us eagerly awaiting Apple's annual "Tech Spring Festival" event. The leaked information from external sources had hinted that this year's Apple product lineup was worth the anticipation.
**1. Innovation Drought**
For those who tuned in with great expectations to this so-called "Tech Spring Festival," disappointment was likely the prevailing sentiment. Apple spent a considerable amount of time showcasing a self-directed environmental skit, which some dubbed the "comedy sketch" of the event. Even Tim Cook had a moment of acting on stage. When it came to the hardcore product presentations, Apple seemed to have fallen short.
The only satisfying aspect of the event might be that Apple's pricing remained relatively stable. Despite earlier rumors of a significant price increase for the iPhone 15 series, Tim Cook announced at the end of the event that the prices for all four versions in the United States would stay the same. The official prices for the base model remained unchanged domestically, with price increases ranging from 100 to 500 yuan for the higher-end versions.
In terms of appearance, the differences between the new iPhone 15 and its predecessor mainly revolved around the notch and color schemes. The design of the camera module remained largely unchanged. Apple introduced new color options, including pink, yellow, blue, and green, alongside the classic black for the iPhone 15 and iPhone 15 Plus. Interestingly, they abandoned the long-standing white color scheme, perplexing many fans who preferred white iPhones. The Pro and Pro Max versions came in four colors: black titanium, white titanium, blue titanium, and raw titanium, giving them a darker overall aesthetic.
Additionally, as rumored, the iPhone 15 series finally replaced the Type-C interface with a unified interface that matched other Apple products like Mac and iPad. Apple announced that one charging cable could now be used for multiple Apple devices. Finally, they harmonized the interface with the Android system, earning praise from the market.
While the introduction of the new Type-C interface certainly improved the user experience, these changes couldn't be considered groundbreaking innovations. It can be said that Apple has done its best to address many past pain points. Some tech media even referred to the Type-C interface as a "milestone" for the new iPhone, indicating that Android had been "far ahead" for many years.
**2. Is Apple Laying Flat?**
The lackluster new Apple products have intensified speculations in the market about Huawei's potential to capture the iPhone market. On August 29th, Huawei directly launched the Mate 60 Pro, which was seen as a roadblock for Apple.
Recently, Huawei has been continuously breaking sales records. On September 10th, the Mate60 and Mate60 Pro were fully launched on Huawei's official website and quickly sold out. On the morning of September 8th, Huawei suddenly released new smartphones like the Mate60 Pro+ and Mate55. After the first round of pre-sales, these phones were also sold out quickly. As of September 13th, the entire Mate60 series from Huawei remained out of stock.
Given Huawei's strong performance in the domestic market, many believe this could affect Apple's sales. Some even speculate that Huawei's impact could lead to a 38% drop in iPhone sales in the Chinese market.
As mentioned earlier, Huawei's resurgence is bound to have a significant impact on Apple. China, being one of Apple's most critical markets, accounts for approximately 19% of Apple's global revenue.
Chief analysts at brokerage firms believe that by the end of this year, Huawei may recapture a market share of approximately 6 to 10 million smartphones from Apple, compared to Apple's total shipments of 232 million in 2022 (with 74 million in the fourth quarter). In the medium to long term, iPhone's market share in the Chinese market is expected to be suppressed, returning to the levels of 2019 to 2020, dropping from the current 16.8% to around 10%.
In the face of Apple's apparent plateau, one can only wonder how Steve Jobs would have reacted.
**3. Singled Out but Still Profitable!**
In reality, the market had already cast its vote on Apple's "innovation drought" before the event, and the stock price opened lower in response.
Furthermore, UBS Securities released a "bearish" report on Apple's new iPhone 15 series shipments ahead of the event. The report pointed out that due to risks such as Huawei's new phones, UBS Securities had lowered its estimate for the shipment of Apple's iPhone 15 series from 80 to 90 million units to 78 million units.
However, after watching last night's event, it seems that UBS Securities may have overestimated the situation!
Additionally, Apple's claim of "in-house developed 5G baseband chips" has once again faced setbacks. This is due to Qualcomm's announcement that it will extend its supply of 5G baseband chips to Apple for an additional three years, starting in 2024. This news shattered expectations of Apple's in-house chip development. It can be inferred that Apple may not be able to use its own in-house developed 5G chip baseband until at least the iPhone 19 in 2027.
Despite facing bearish sentiments from the market, Apple continues to be a highly profitable tech giant. In the 2022 fiscal year (corresponding to September 2021 to September 2022), its revenue reached $394.3 billion, approximately ¥2.87 trillion, marking a historical high. 52% of this revenue came from the iPhone products, totaling $205.5 billion, or nearly ¥1.5 trillion!
Gross profit reached a staggering $170.8 billion, with a gross profit margin of 43%. Net profit stood at $99.8 billion (approximately ¥723.8 billion), with a net profit margin of 25.31%. Sales costs amounted to $223.5 billion, accounting for 56.7% of revenue, while R&D expenses were $26.3 billion, representing 6.66% of income.
Apple sells approximately 200 million smartphones annually. Assuming sales of 200 million iPhones in the 2022 fiscal year, the approximate average net profit per iPhone is ¥3,600.
Therefore, Apple remains one of the most profitable companies in the world, outshining all smartphone manufacturers in the Android camp. While there may be opportunities when Apple's stock price drops to a certain level, that time has not yet arrived!
@MaverickTiger @VideoLounge @TigerStars @Daily_Discussion @CaptainTiger @MillionaireTiger @Tiger_chat
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