At the Q1 2021 earnings call, the CEO of Apple, Tim Cook explained that Apple’s new products are explored keeping the customers-experience point of view in mind. The company recorded “an all-time revenue record of $111.4 billion” in the first fiscal quarter of 2021 due to innovative products and services the company offered when the entire world was going through an unprecedented period, the COVID-19 pandemic.
Last year, Apple launched new models of its smartphone, tablet, laptops, smartwatch, and speaker which resonated well with the consumers.
iPhone grew by 17% year over year, driven by strong demand for the iPhone 12 family, and our active installed base of iPhones is now over 1 billion. The customer response to the new iPhone 12 models’ unprecedented innovation from world-class cameras to the great and growing potential of 5G has been enthusiastic, even in light of the ongoing COVID-19 impact at retail locations. iPad and Mac grew by 41% and 21%, respectively, reflecting the continuing role these devices have played in our users’ lives during the COVID-19 pandemic. During this quarter, availability began for both our new iPad Air as well as the first generation of Macs to feature our groundbreaking M1 chip.
Apple new products are designed to cater to users needs, says Cook
Analyst at Morgan Stanley, Katy Huberty asked CEO, Tim Cook, what is the internal framework to evaluate new markets “that might be attractive and what you believe will determine your success as you look to enter new markets?”
Cook explained that there is no formula used when exploring a new market/ product, the focus on developing the kind of new products and services which he would like to use personally.
“The framework that we use is very much around — we ask ourselves if this is a product that we would want to use ourselves or a service that we would want to use ourselves, and that’s a pretty high bar. And we ask ourselves if it’s a big enough market to — to be in unless it’s an adjacency product, of which we’re looking at it very much from a customer experience point of view. And so there’s no set way that we’re looking at it, the — the — no formula kind of thing.”
He further elaborated that the company “loves to work” on products that combine hardware, software, and services because they “believe that the magic really occurs at that intersection.”
And so hopefully, that gives you a little bit of insight into how we look at it. And I think we have some good — really good opportunities out there.And I think if you look at our current portfolio of products, we’re — we still have relatively a low share in a number of cases in very big markets. And so we feel like we have really good upside there, and we feel like we have really good upside in the services area, too, that we’ve been working on for quite some time with four, five new services just coming online in — in the last year, year plus.
- In Q1 2021, Apple saw the most iPhone upgrades ever
- Apple’s FaceTime calls saw the highest volume on Christmas in 2020
- Apple’s services revenue posts all-time high record of $15.8 billion in Q1 2021
- Apple’s wearable business sets new record in Q1 2021, grew 30% year over year