With the anticipation that the next iPhone will be a major success, the stocks of Apple Inc. rose a whole percent on Tuesday to close at US$153.99 in New York. This upsurge pushed Apple’s capitalization to about US$803 billion, making it the U.S. Company to achieve the mark. Apple’s shares have earned 33 percent this year alone, gaining from a buyback program introduced by CEO Tim Cook, for which the total was extended to US$210 billion last week, up from US$175 billion by the end of 2016.
Three New iPhones in 2017 to Mark 10-year Anniversary of the First
Apple has announced three top-of-the-line iPhone 8 handsets in 2017, which are keenly awaited by the enthusiast, who are expecting several new features after modest upgrades offers by iPhone 7. 2017 also marks a decade of iPhones, and Apple has promised a new type of screen, stainless steel body, curved glass, and best-of-its-kind camera.
Apple Watch, iCloud, and Airpod Higher Margin Services
Though iPhone continues to constitute the maximum share of revenue for the company, stiff competition is coming from other vendors including Samsung, Google, and other regional players, and the sales have dropped significantly. On the other hand, Apple Watch, iCloud, and Airpod wireless headphones have been detected as higher margin services by Tim Cook, who has sought to diversify the Cupertino, a California-based company, away from smartphones.
Apart from the growing popularity of latest technology and innovative products, Apple’s escalation is also a reflection of a relative decline of the oil industry in the recent past.
Subway has always been a popular eatery across America with several outlets. The attracting menu offered by Subway has saturated the American market in the last few years. However, in 2016, Subway restaurants closed down 359 of its outlets, which can be termed as one of the biggest retrenchments in the history of the restaurant. Subway has been making remarkable efforts to restore its status by eradicating antibiotics from its chicken and using care-free eggs. This is expected to attract several health-freak consumers in the next few years.
Rising Number of Competitors to Restrict Growth
America has witnessed an emergence of several new outlets serving fast food, which has gained immense popularity in the last few years. This has resulted in shut down of hundreds of domestic locations in America. In 2016, the company lost around 350 locations in the U.S.; however, the brand still remains a popular eatery after McDonald’s.
Furthermore, the marketing strategies and advertising techniques that are being used extensively by rival brands have contributed significantly towards the downward trend of Subway restaurants across America. Thus, the brand is making efforts to cope up with the industry’s heavy dependence on promotions and discounts. The introduction of delivery services by Subway for its consumers is likely to attract a large number of consumers in the near future.
Emergence of New Products to Encourage Growth
As per the statistics provided by MillerPulse Data, the sales of subway restaurant products has dropped 0.6% in the last four months. However, on an international level, this popularity of Subway is increasing substantially. The marketing team of Subway is working on introducing new and healthy products to gain the competitive advantage and retain its leading position across America. This is likely to supplement towards the overall development of the brand name in the coming years.
Despite consistent efforts and change is marketing and designing plans, EBay was unable to convince investors that these efforts were taking shape, especially as its reporting sales growth continued to trail e-commerce goliath Amazon.com Inc.
Among the recent changes made in the way the firm functions, the key decisions taken by Devin Wenig, EBay’s Chief Executive Officer, include redesigning the website’s homepage so as to make it more personalized for visitors, up its expenditure on marketing, and making navigating through 1 billion listings much easier. These efforts resulted in a sales gain of 3.7 per cent in Q1, which is almost similar to that registered in the previous period. EBay parted ways with PayPal Holdings Inc. nearly two years ago and since then, CEO Devin Wenig’s aim has been to make the firm a place where customers go to for novel items otherwise not found on Amazon.
An industry analyst is of the opinion that the company has been struggling to present consistent results and even though the previous quarter exhibited promising growth, this quarter has been rather uninspiring, only affirming its inconsistency.
What the Numbers Reveal
In the first quarter of the current year, EBay earned 2 million new active buyers to reach a total of 169 million. This is a rise of 4 per cent from the same period the year before. As far as the gross merchandize volume is concerned, the company reached US$20.9 billion, reporting a 2.4 per cent increase in terms of the value of goods via transactions. However, this is almost similar to the growth reported in the last quarter. The e-commerce company’s shares dropped 4.5 per cent after wrapping up at US$33.85 at the New York Stock Exchange.