Apple reported strong earnings at the start of August, thanks to solid sales of its iPhone, iPad, and desktop computer products. Its revenue grew by 7%, while EPS increased by 17%, comfortably exceeding Wall Street expectations. The trading session following the results release showed an increase of approximately 6% of its stock price, helping to push the Dow Jones to a new high of 22,000. Traders are now turning their attention towards the launch of the new iPhone 8 this fall.
The iPhone continues to be a status symbol worldwide, due to the device’s unique design and functionality, regular improvements, and relatively high prices. Apple always aims to appeal to a new generation of users and maintain its market position in the face of fierce competition from companies like Samsung. It is therefore vital for the company to invest in innovation and deliver improved versions of its flagship products. Therefore, the annual iPhone release is one of the biggest technology events of the year.
The next iPhone, the tenth edition since its initial launch, is said to be the biggest smartphone update in years. The iPhone 8 is expected to incorporate a wealth of new features, which could drive revenues and stock prices still higher.
It was in 2007 that Apple unveiled its first iPhone in the U.S., at a time when BlackBerry and Nokia dominated the mobile phone market. Back then, Apple products were widely seen as too expensive and the company was forced to lower its prices in order to gain market share. Since then, Apple has rapidly become the biggest name in smartphones, selling more than 1 billion units worldwide.
The company has issued aggressive sales forecasts for the iPhone 8, with revenue expected to reach between $49 billion and $52 billion during Q4, which ends in September. These figures suggest that the company will launch its new iPhone that month, despite rumours about a possible delay. Availability issues affecting the new iPhone could be stressful for the company and disappointing for customers.
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