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Apple Inc. dominated Black Friday mobile sales this weekend besting Amazon’s Fire and Google Inc.’s Android. Online sales and traffic reached new thresholds this year with the traffic from mobile sales accounting for 52.1 percent of all online traffic on Thanksgiving and 49.6 percent the following day. 28 percent of online Black Friday sales was attributed to mobile phones.
While the overall sales on Black Friday trumped Thanksgiving Day by 63.5 percent, it was still lower than the 70 percent margin enjoyed last year. Mobile phones fueled the total online traffic by 35 percent on Black Friday, more than doubling the traffic the tablets generated. Apple Inc.’s iOS platform bested Google Inc.’s Android in both sales and traffic. While Android experienced 15 percent of online traffic iPhones and iPads accounted for 34 percent of the online traffic. Apple also raked in 22 percent of the online sales in comparison to Android which was barely under six percent.
Average Android ticket price was around $98 while the iOS platform sat at a comfortable $121.86. Total online sales experienced at the department stores were up 23 percent with smartphones going up approximately 26 percent. The total average ticket price fell about two point five percent from last year.
On Tuesday, Apple Inc.’s market cap topped $700 billion making it the most valuable company in the world. In comparison, the next most valuable company in the world is Exxon Mobil with a market cap $300 billion less than Apple Inc. Per the International Business Times, Apple Inc.’s valuation is higher than Google Inc., Pandora Media, Broadcom, Sony, HTC, BlackBerry, Samsung, ScanDisk, Cirrus Logic, HP, and Lenovo combined.
Apple Inc. employed a new tactic this holiday season aiding their domination of mobile Black Friday sales. This year a press release went out offering consumers a special edition (RED) iTunes gift card with a purchase of select Apple products. The gift card was part of a 2014 World Aids Campaign started by the company. Starting Dec. 1, Apple will be donating a portion of every online and retail purchase towards (RED) AIDS Campaign.
The Mac and iPhone lines are a major staple in Apple Inc.’s business. The iPad, while still a preferred choice for tablets, has seen declining sales. Many consumers viewed the iPad as a replacement for laptops but at most, it has developed into a device that augments them when transporting a laptop is not feasible.
The company is meeting their projections and look to sell 71.5 million iPhones this quarter per Ming-Chi Kuo, a KGI analyst. If Apple can experience a boost in iPad sales, it would definitely play a key factor in pushing the company over the $1 trillion mark for market cap.
Apple Inc. stock currently sits at $118.54 per share but would need to reach $167 to break the $1 trillion mark according to David Zeiler. Another way to look at it would be that Apple would need to pull in an additional $55-66 billion in net income while demolishing records along the way.
The weakness of the competition aids Apple as well as the vulnerability of the open market ecosystem of the Android. Another boost to Apple’s coffers is the launch of Apple Pay. It launched on Oct. 20 with 220,000 doors including major names like Bloomingdales, Macy’s, and Staples. Apple reported 1 million credit card transactions within the first 72 hours of launch. While large-scale acceptance of NFC terminals to process mobile payments such as Apple Pay has not been adopted yet, Apple is already in position to corner that market. Companies like Best Buy initially installed the terminals ranging in price from $300 to $500 per unit; they ended up double backing and cutting them out due to the high cost and low usage.
Black Friday has seen an increase in mobile sales dominated mostly by Apple Inc.’s iOS. While Android may reportedly be first place as the top smartphone in the U.S. market, Apple has managed to stomp out all competition this holiday weekend.
By Stevenson Benoit
Photo by Andy – Flickr License