Is Apple Music worth the hype

IPhone X hype : Apple on the way to becoming a trillion dollar company

At 8:06 am the time had come. Helge Bruhns was the first Berliner to hold the new iPhone X in his hands. He had been camping in front of the Apple store on Kudamm for eight days, cursing the constant rain of the past few days and partying with other Apple fanatics in anticipation. It was estimated that up to 300 had gathered in front of the branch in the hours before sales started.

The hype of the early years is back. The latest versions of the smartphone saw fewer innovations, less enthusiasm and shorter lines. But for the tenth anniversary of the smartphone, Apple completely redesigned its flagship. Of course, this has its price: For the first time, the company is asking for a four-digit sum for an iPhone.

Bottlenecks in the production of the iPhone X?

Some observers had wondered whether Apple is turning the price screw too much, but at least the most loyal buyers were not scared. After just three hours, the most expensive version (1319 euros) was sold out on the Kudamm, while the slightly cheaper version with less storage space was available for longer. The employees could not say when there would be more supplies. In general, the big question is whether Apple can keep up with production. Due to the new face recognition that the device offers, there should be bottlenecks in some of the necessary parts. According to estimates by analyst Ming-Chi Kuo of KGI Securities, Apple could only have around three million iPhone Xs available at the start of sales and only 20 to 30 million devices on the market by Christmas. For comparison: more than 77 million iPhones were sold last Christmas.

But the worst fears do not seem to be confirmed: According to the website, customers in Germany are currently supplied in three to four weeks. At the presentation of the quarterly figures on Thursday evening, CFO Luca Maestri also said that they were quite satisfied with how the production of the iPhone X was developing. This is also supported by the fact that Apple promised a new record: For the Christmas quarter, sales should be between 84 and 87 billion dollars (72 to 74.6 billion euros). That would be a dramatic increase from $ 78.4 billion a year ago - which was already a record.

Apple delivers new record numbers

And yet the past three months have been excellent and better than some analysts expected. Because in the past few weeks it had been speculated that many customers were waiting for the iPhone X instead of buying the iPhone 8 variants that were recently launched. But the demand exceeded expectations, said Apple CEO Tim Cook. With the two variants iPhone 8 and 8 Plus, which outwardly look similar to previous models, Apple sold almost 46.7 million of its smartphones in the past quarter. That was an increase of 2.5 percent. Overall, Apple earned $ 10.7 billion in the period, around 19 percent more than a year earlier. Quarterly sales rose twelve percent to $ 52.6 billion.

This also contributed to the fact that Apple managed to end the long downward trend with its iPad tablet. Sales rose 11.4 percent to 10.3 million devices. In the case of Mac computers, there was an increase in sales of ten percent to just under 5.4 million devices in the midst of a continued weak PC market. The services business, which includes revenues from streaming service Apple Music, online storage iCloud and app downloads, grew by 34 percent to $ 8.5 billion.

Market value soon at a trillion dollars

The share also rose again by almost three percent on Friday after the price had climbed from 130 to almost 150 euros last month. As a result, Apple's stock market value continues to rise. It is now almost $ 890 billion. For comparison: smartphone market leader Samsung Electronics is worth around 350 billion dollars on the stock exchange, the three most valuable German DAX companies - SAP, Siemens and Bayer - bring it together to 375 billion dollars.

Numerous Wall Street analysts therefore assume that Apple will be the first company in history to break the valuation mark of one trillion dollars. For that, the stock would have to skip the $ 193 value. If it increases as it did last, it could soon be the case.

Now new: We give you 4 weeks of Tagesspiegel Plus! To home page