Despite the global smartphone market hitting its lowest levels in a decade and Apple Inc. AAPL facing competition from Huawei Technologies's comeback in China, Tim Cook said that the iPhone 15 has been outselling its predecessor, the iPhone 14.
What Happened: During the first quarter earnings conference call on Thursday, Cook responded to Bank of America’s Wamsi Mohan’s query about the iPhone 15’s performance.
Cook highlighted a 6% increase, with strong performance in Europe and Asia-Pacific, and record-breaking sales in emerging markets like Latin America, the Middle East, India, and Indonesia.
Notably, the iPhone 15 set a new global record for upgraders, contributing to an all-time high in Apple’s installed base. The Apple CEO also pointed out that "iPhones were four out of the top five smartphone models in the U.S. and Japan and four out of the top six in urban China and the U.K., and all top five in Australia, and the customer satisfaction level for iPhone 15 hit 99%."
Comparing sales since the iPhone 15’s announcement and shipment in September, including some of Q4, Cook confirmed that the iPhone 15 is outselling the iPhone 14. He expressed satisfaction with these results, particularly noting the record number of upgrades.
"If you look at iPhone 15 since the announcement of it and shipment in September, so this is including some of Q4 and you compare that to iPhone 14 over the same period of time, iPhone 15 is outselling iPhone 14," he said, adding, "And so, we feel very good about that, and the upgraders hitting a record is particularly exciting for us."
Why It Matters: Apple’s first-quarter earnings report revealed a year-over-year increase in earnings and revenue, breaking a four-quarter-long streak of declining revenue. This strong performance was largely attributed to record Services revenue.
The iPhone 15, launched in September 2023, played a significant role in Apple’s rebound.
According to data from Counterpoint Research, the U.S. smartphone market saw an 8% year-on-year growth in the fourth quarter of 2023, largely driven by the iPhone 15. This surge in smartphone shipments was also due to a disruption-free quarter for Apple, unlike the COVID-19-induced factory shutdowns in Q4 2022.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image – Apple
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