Posted April 05, 2020 12:06:42American tech leaders are starting to acknowledge that the smartphone boom of the past decade, and the accompanying consumer shift to mobile computing, has not delivered a major hit to Apple’s bottom line.
But they are also beginning to grapple with the challenges that may come as Apple’s iPhone business continues to expand.
According to a new survey by the tech industry research firm Gartner, the company has failed to capitalize on a key growth trend in the past few years.
According to Gartners’ new survey of 1,500 computer accessory and computer system sales, the percentage of consumer electronics and network products sold by Apple dropped from 35.1 percent in 2015 to 32.3 percent in 2020.
The report noted that this drop in demand was partly driven by a drop in sales of the company’s top-selling smartphones and the decline of other popular brands.
Apple also had a smaller percentage of the market share of high-end, high-tech hardware, but Gartener said the drop in that market share was also driven by other consumer electronics companies such as Microsoft and Lenovo, and by emerging markets such as China and Brazil.
“This is the kind of market Apple is not going to make any money on,” said Scott Wojcicki, Gartness director of product management.
“They don’t have a big enough market share to sustain growth.”
While Apple has benefited from the surge in smartphone sales, its revenue from the consumer electronics business has been falling.
The company is still one of the world’s largest sellers of PCs and laptop computers, but that market is shrinking at an even faster pace than the consumer hardware business, which is expected to shrink by more than 25 percent this year.
Apple’s PC market share dropped from 19.3 to 18.9 percent in the first quarter of 2020, and it lost a quarter of its market share in the fourth quarter of this year, according to Gert Borschberg, chief executive officer of consulting firm Borshberg.
That decline is expected continue in the current year, as Apple loses market share from Windows-based PCs.
Meanwhile, in the consumer electronic business, Apple lost a whopping 23.1 million customers last quarter, according the research firm IDC, which said that a quarter-of-a-billion PCs were sold in the quarter.
“There is a huge disconnect in the market,” said Borsenberger.
“People don’t see Apple as a consumer electronics company, and they don’t know how to use Apple products.
They don’t want Apple to have a huge impact on the consumer products market.”
Apple has struggled to retain market share as the smartphone and tablet market has grown and consumer electronics has become increasingly popular.
Despite some gains, Gartzner found that Apple’s market share has slipped by 7.7 percent since the second quarter of 2016, from 24.4 percent in 2016 to 24.2 percent in 2017.
Gartner’s study also found that the consumer smartphone market had dropped 7.9 points since last year, from 23.9 to 23.3, and that Apple lost 9.4 million customers in the same period.
The report also noted that Apple is likely to continue losing market share over the next two years as smartphone sales continue to grow.
Apple has made a concerted effort to bolster its brand image in a bid to boost sales of its products, but its marketing and advertising have been increasingly branded with ads and other messaging that can appear to be designed to appeal to consumers.
A new report from PricewaterhouseCoopers said that in 2019, the average price of Apple products sold on Apple stores was more than four times higher than in 2016.
And that gap is expected in 2020, when Apple’s average retail price is expected a little over $100.
While some of the advertising Apple is putting out may appeal to customers, it can also be misleading to consumers who are trying to make a decision about what kind of computer to buy.
For example, Apple’s new “Fashion For Everything” campaign, which debuted last year in the U.S., featured a series of photos of models wearing a range of products that were designed to boost consumer confidence in Apple products, according a Pricewaterbury analyst.
The campaign also included a video that was directed to customers in which the brand was told that a new computer or phone was coming soon.
In its annual report, Apple acknowledged that some of its advertising messages, like “Apple is here to help,” may be misleading and said that it is working on a new campaign that is more inclusive.
The brand also has been spending more on its advertising campaigns and marketing efforts, including the introduction of an online store for consumers to purchase the company-designed products.
But Apple’s success as a manufacturer of consumer gadgets has also helped it to build up an ever-expanding brand, which has also allowed it to attract more talent