Apple Inc (NASDAQ:AAPL) iPhone sales are expected to reach the one-billion mark as the company reports its third quarter financial results this week.
iPhone Sales Performance
Analysts believe that the technology giant has sold about 40 million iPhone units during the third quarter, bringing the total sales since the iPhone was introduced to nearly 990 million units. Given this data, Apple is believed to sell before the month ends its billionth iPhone model— if it has not yet earlier this month.
The past two years have been the highest point of Apple’s flagship smartphone device, accounting for about half of these total sales.
Mature iPhone Market
While hitting the one-billion mark for a smartphone is an interesting feat, it also indicates that the global iPhone market is maturing. Obviously, it is a rare accomplishment for technology companies. It is also important to note that Apple already reported last quarter that more than one billion Apple devices— iPhones, iPads, iPods, Macs, Apple Watch, Apple TV— are active. Nonetheless, many analysts are still not optimistic about it, particularly the iPhone.
It has been nearly a decade since the iPhone first came to the market, enjoying a massive popularity among all users and putting up impressive figures. However, the iPhone finally broke its streak last quarter. For the first time ever, iPhone sales declined year-over-year. Analysts believe that the year-over-year drop in sales trend will likely continue and reflect in the third quarter.
iPhone sales account for most of the California-based company’s revenue, which is why the sales drop last quarter also caused Apple to post a fall in revenue after many years of always outperforming its previous quarterly results.
Analysts suggest that the company is not likely to post lifted performance for quite some time, with the major comeback expected to happen by 2017 as Apple promises more new product lines. The technology giant’s services are now its second biggest segment. It is a big shift from its focus on hardware and it appears to be paying off as more and more consumers rely on these services that guarantee profit for Apple.
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