Apple is expected to bring in $180 billion from its iPhones alone in 2021 although Apple Inc.’s iPhones may delay Android devices in terms of market share.
The tech giant currently holds about a 14% to 15% share of the smartphone market, with Android making up the most of the rest, a trend IDC expects to keep up.
However, as Apple introduces higher-end offerings, such as the expected tenth-anniversary iPhone, the firm is expected to bring in an uneven amount of money due to its higher price point.
The International Data Corporation or IDC expects Apple to command 36% of the device market value, the money spent on smartphones, leading to the $180 billion estimate. That number does not include the money it could make off services related to the devices such as the App Store.
Apple sold $136.7 billion worth of iPhones in its 2016 fiscal year, down from a record $155 billion in 2015.
The company has reported $112.5 billion in iPhone sales through the first three quarters of this fiscal year, and analysts project it to sell about $30 billion worth of smartphones in the current quarter
Apple’s rumored new iPhone, which IDC calls an “ultra-premium device,” is expected to come with a price tag of $1,000, which would make it the company’s most expensive phone to date.
IDC expects that the upcoming new iPhone will help push the overall average selling price of a smartphone to increase by more than 7% in 2017.
Competition with Android
While the iPhone 8 is expected to revamp consumer interest in Apple products, the International Data suggests it won’t be enough to hold off intense competition from rivals, most notably Android phones.
In 2021, IDC forecasts Apple is likely to ship 14.4% of all smartphones globally, down from 14.6% today, as iPhone 8 enthusiasm dies down. The report highlights the fact that Androids are still cheaper than Apple offerings, making them attractive for people buying their first phone.
While iPhone shipments fell marginally in 2016, it remains one of the most popular smartphones on the market as the IDC expects iOS smartphone shipments to increase 1.7% in 2017 and 9.1% in 2018
given the iPhone 8’s expected next-generation features, including wireless charging and Facial ID recognition as the phone is available for the whole year.
Despite the boost, Android phones are expected to ship at a faster annual rate than iPhones over the next four years.
Nevertheless, Apple is expected to largely remain in second place to Android devices, which are expected to have 85.5% market share in terms of phone shipments, largely in line with its current share, by 2021.
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