We are living in very uncertain times. Major wars are underway in Ukraine and Middle East. And the concept of ‘Business as Usual’ is returning to the 1970s model – of disruption and military conflicts.
Chemicals and the Economy
Q3 smartphone market confirms need to build Services revenue as consumer sales slow
The smartphone market highlights how companies are responding very differently to the economic slowdown. Samsung is adding features such as ‘foldables’. But Apple is building services business to provide annuity revenue for the future.
Smartphone decline highlights the end of the profitable BabyBoomer-led ‘middle-market’
The downturn in the global smartphone market highlights the need for companies to focus on the Value segment and Services as the Middle Market disappears. iPhones are now 49% of the booming second-hand market, allowing Apple to gain more Services revenue via its App Store.
Smartphone sales hit new low as world moves into its first “demand recession”
Cheap used phones priced at<$200 are now the only growth area in the smartphone market. Companies who just sell hardware are now set to be Losers as their profits tumble. Companies like Apple, with a strong brand and service offering, will be long-term Winners.
Smartphone market confirms major recession underway – 6th consecutive quarter of falling sales
The smartphone market has now been in decline for 5 years. And whilst the Fed would clearly love to get stocks racing to the moon again, history suggests that Apple’s CFO is likely to be right when talking about the importance of cost control for the future.
Apple’s China problems highlight smartphone market downturn
Apple symbolises the major changes underway in the economy. Its stock price is in decline as central bank stimulus disappears. And its profits are threatened as pressure builds on its supply chain and pricing.
Smartphone sales continue to fall as consumers cut back
Consumers around the world are tightening their purses and cutting back on non-essential purchases, as the recession continues to develop and China’s real estate bubble bursts.
Smartphone sales set to tumble as China’s lockdowns continue
The market downturn couldn’t have come at a worse time for Apple. It was already facing major supply chain chaos in Q2. And now it has to face a major decline in the smartphone market itself. Inevitably this will lead to a brutal battle for market share as companies struggle to survive.
The trend is your friend in the smartphone market
Two core trends are playing out in the smartphone market, now it has gone ex-growth. The weaker players are suffering major hits to their revenue and profits. And the most successful company, Apple, is busy accelerating its move into the more service-based markets of the future.
Smartphone sales decline highlights need to move to a more service-based business model
Global smartphone sales took a hit in Q3, disappointing those who had hoped the economy might be moving into full recovery mode. And the market continues to see a major shift in consumer preferences: Back in 2013, sales were in turbo-charged growth mode, with volume rising 41% by year-end. And 2014 saw volume up 31%, […]