The smartphone supercycle is real. After years of so-so upgrades, the release of pricey 5G-enabled iPhones has jolted sales at Apple. Revenue up 54 per cent to almost $90bn in the first three months of 2021 comfortably outpaced those of fellow tech leaders Facebook, Microsoft and Alphabet. Operating income more than doubled.
So much for smartphone saturation. The wealthy, asset-rich portion of society who managed to save money during the pandemic appears to intersect nicely with Apple customers who want to treat themselves. Product sales rose 62 per cent on the previous year with iPhones, Macs and iPads all in demand.
Apple’s worrying reliance on iPhones looks less of a problem when global sales of smartphones are rising. Apple ranks second in the world to Samsung for smartphone shipments, according to data from research group Omdia. Given the latest networks are not yet ubiquitous, sales of the next iteration of 5G-enabled phones can only add to the tally.