Apple and Samsung’s distinct approaches to the mobile market underline their long-term visions for the mobile space

49% YoY. The increase in wearables revenue to $5.5 billion — driven by Apple Watch and AirPods sales — doesn't make up for the decline to $53.8 billion in mobile phone revenue. But if wearables revenue continues this growth, it could fully offset that difference in the future, especially combined with growth in Apple's other auxiliary revenue channels like services.for Q2 fell 4% YoY, with its mobile business exhibiting tepid 7% growth.

Apple's business is as a purveyor of its own products and the services that are delivered through them. The company is bringing its existing base of loyal customers even further into its ecosystem, selling iPhone users other devices like iPads, AirPods, and Apple Watches, as well as getting them to subscribe to things like news services.

That gives Apple a limited long-term ceiling for its growth: The overall population of potential customers isn't increasing greatly thanks to the strategy of deepening its current population. But it also means that Apple will succeed or fail based on its own products, rather than being subject to the moves of others.

On the other hand, Samsung's strategy for continued success is dependent upon the continued growth of the mobile market and the performance of the companies that it supplies. Nearly half of Samsung's quarterly revenue is dependent on its role as a supplier for the computing market. Its semiconductor business doesn't just supply chips and memory for its own phones, but also for those of competitors including LG and Sony. As thoseThis dependency gives Samsung a higher ceiling for potential growth, as it's not dependent solely on its own devices. But it also allows for greater variability and the potential for disaster should Samsung's apparent belief in the mobile market's potential to grow further in the next few years turn out to be inaccurate.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Apple and Samsung earnings show most people don't want $1,000 phonesApple and Samsung's earnings both show that sales of expensive premium phones are down. Instead, people want affordable phones with good cameras and long battery life. Hell nah Thank you consumers for slowing the market down!! 🙏🙏🙏 mr_jettlife
Source: CNBC - 🏆 12. / 72 Read more »

Apple rises on earnings beat'They proved, once again, the critics wrong.' Here's what 4 experts had to say about Apple's beat on earnings and revenue. Wasn’t expecting it. With trade burdens looking to go long, sluggish device sales with nothing new in the iPhone corner, a 2:1 P/C ratio before the earnings call, and their lead designer leaving, it had all the makings to fall short.
Source: CNBC - 🏆 12. / 72 Read more »