While that looks like a small amount compared to Apple's projected revenue of $392 billion in fiscal 2022, the company's impressive growth in India at a time of high inflation means that consumers are willing to spend on iPhones. More specifically, the average selling price (ASP) of a smartphone in India stood at $211 in the first quarter of the calendar year.
But Apple has major optionality on its side. Despite weaker than anticipated iPhone 13 demand, the company is not anchoring itself on one singular product release. Apple is investing in new product development and investors should expect to see these materialize in 2022. Namely, the company is set to launch its iPhone SE 3 during the first half of 2022. This could serve as a lucrative catalyst for Apple because this device is more budget friendly compared to higher-end hardware. Additionally, a number of new patents filed by Apple have some analysts speculating that the company's next blockbuster hit is less than a year away.
Despite these uncertainties, Apple has several catalysts in its pipeline which should provide investors some confidence. New iPhones and the launch of an AR/VR headset, the latter of which will allow Apple to enter a new addressable market served by both its product and services businesses, make it hard to contest that growth isn't on the horizon. The biggest questions revolve around when this growth could occur and to what magnitude. Although investors cannot go wrong taking a profit, Apple's strong balance sheet and product expertise make it a compelling must-buy (and hold) stock for 2022.
Apple Inc. (NASDAQ:AAPL) shares have fallen 23% this year due to concerns about deteriorating macroeconomic conditions. Apple is best known for its iconic iPhones, and the release of new models causes a buying frenzy in stores worldwide every year as the company rarely fails to delight customers with improved design and functionality. However, as the iPhone business matures, investors are wondering what the next big growth driver will be for the tech giant and whether the recent drop in Apple stock presents an opportunity to invest in the company at a bargain price.
With that in mind, Apple will be treading carefully considering consumers could be more sensitive to pricing than in previous years as they are forced to stretch their budgets and must spend more of their wages on essentials. CEO Tim Cook said back in July that consumers still want to upgrade considering 5G penetration remains low. Pricing could remain key to maintaining growth in iPhone sales should demand be weaker than in previous years.
Below is a table outlining iPhone sales by each financial quarter over the last two years, demonstrating how the launch of a new iPhone in the fourth quarter leads to a significant jump in sales in the first. It also includes forecasts for iPhone sales for the current and next quarter to show that analysts expect tepid year-on-year growth:
There have been several reports noting that Apple will be switching away from Intel processors for its Mac lineup in favor of its own in-house ARM chips as soon as 2020. Axios is today reporting that several developers and Intel officials also expect the move as early as next year.
The next couple of years are going to be very important for Catalyst adoption. Apple is expected to release updates for the Catalyst SDK through 2021, including growing compatibility for various apps. However, the company is also expected to make the development and submission process more efficient, until developers will be able to use one set of tools and make one submission for both iOS and MacOS.
The biggest driver of Apple's modern success is the iPhone. The game-changing smartphone, which debuted in 2007, sparked years of massive growth and created a loyal base of customers willing to buy Apple products and services. 2b1af7f3a8