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Why and how Apple is losing business users in Europe

Hello.

One segment where Apple’s sales have historically been strong has been the corporate segment. The time spent with the release of the iPhone 14 has become a fact for the European market, the price of the devices has increased dramatically, as has the cost of their ownership. The microcosm of the European corporate market perfectly reflects the crisis that is developing before our eyes and is pushing Europe into recession. Europe’s main slogan is to save in everything and everything, to save at any cost. The reason is the cost of energy, it is growing before our eyes, even if it does not affect large companies to a certain extent, they sit on long contracts that compensate for price fluctuations. The next stage of price changes for many companies is the beginning of 2023. Literally everything depends on the cost of energy, the prices of any commodity, heating, communications and so on. The cost of 5G itself is becoming unbearable for operators, prices will rise before our eyes. In a separate article, he showed how the cost of maintaining 5G in Europe is changing, the numbers speak for themselves.

In the context of the crisis, the corporate segment is not considered, when companies buy smartphones or computers for their employees, they pay for communication services, even if this segment has always been very interesting, with a high average bill. In Europe, the relationship between B2C and B2B in the telecommunications market remains at the same level: the size of the market is around 250 billion euros per year and the share of B2B is around 35%. This money includes not only the office internet, business systems, M2M, but also the cell phone bills for their employees, although the share of those expenses is relatively low in the overall pie. Separately, you can count the money that goes to the purchase of the equipment itself.

In Russia, the volume of purchases by corporate customers was abnormally high for Europe, the share of sales was about 15% of the total, of which about 30% were Apple’s smartphones. That is, in Russia, with a market volume of 32.5 million units last year, the corporate segment accounted for 4.8 million smartphones, of which 1.44 million for iPhones. At the same time, if on the open market the average cost of the iPhone was about 55 thousand rubles, then in the business segment it amounted to 94 thousand rubles. This shows the importance of the segment to the company, there is a high average bill. The explanation lies in the fact that the top management of many companies buy the devices they want to use. Using corporate resources for conditionally personal purposes is a universal human flaw, and since the iPhone has long been a demonstration of some status, it all converges here.

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