Apple iPhone 11 Pro, Image/Apple
Despite increasing competition coming from less expensive phones by Samsung and Huawei, according to Reuters, Apple’s iPhone is projected to maintain profitability due to “strong demand for new models, spurred by trade-in programs and heavy discounts on older models.” This is definitely good news considering the iPhone has made a comeback after a year long lull.
Fifteen brokerages concurred with iPhone’s comeback by increasing price targets on Apple’s stock last Wednesday. Apple’s first quarter results reflect the renewed enthusiasm for the iPhone:
“We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,” said Tim Cook, Apple’s CEO.”
A few other factors favorably account for the iPhone’s resurgence such as the ability for consumers “to purchase a phone and pay for it in monthly installments without paying interest.” The iPhone 11 cost is $50 less than the previous model, the iPhone XR. Another future factor is the release later this year of the 5G iPhone which is purported to further increase sales.