The sales of iPhone were unchanged year on year, and still, the tech giant has registered a revenue hike of 29% in the fourth quarter. Following this, Apple has decided not to reveal the number of units it sells. Speaking on the sidelines of Apple’s Q4 earnings call, Luca Maestri, Chief Financial Officer at Apple, announced that the company would not declare unit sales of its main hardware including iPhone, iPad, and Mac.
For its smaller devices, Apple has already taken this decision of not disclosing unit sales of Apple Watch, AirPods, and HomePod. These products are considered as ‘Other Products’ by the brand.
Apple Unwilling to Reveal Unit Sales of Main Hardware
Interestingly, Apple’s revenue has seen a 29% bump even as the unit sales remained unchanged year over year. Maestri believed that the sales figures “not representative of the underlying strength of our business.” And this is the reason the company decided to stop revealing unit sales.
Maestri added, “A unit of sale is less relevant today than it was in our past.” However, He confirmed that rise in unit sales would continue to be a part of the company’s goals.
Notably, unit sales are a number journalists and analysts use to calculate average selling price (ASP) of products. Analysts take the number of unit sales and based on that, they get to know how well a particular device or model is performing in the market. However, the unit sales never give a perfect picture of the overall business performance of Apple.
Apple is selling its latest models iPhone Xs, Xs Max, and XR at higher prices than its older models like SE, 6s, and 6. For analysts, it becomes crucial to know the number of consumers buying older and newer devices.
Analysts will have to face a tough time in measuring the performance of the latest iPhone models during the upcoming holidays (Christmas and New Year).
Maestri argued that Apple’s competitors also do not reveal the unit sales figures of smartphones, laptops, and tablets.
This decision of Apple may have different consequences in the future. Many market research and analytical firms won’t be able to measure the performance of Apple’s main hardware. Moreover, it will be challenging to gauge consumers’ interest in buying older or newer devices.
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