Apple Inc. (AAPL): The iPhone Is Alive and Well (At Least in the United States)

Foolish takeaway

It’s fair to view FY13 as a setback for Apple, as revenue growth hasn’t been high enough to offset falling margins, leading to a decline in EPS. However, underneath the surface, most of Apple’s business is still healthy. In the U.S., the iPhone subscriber base has continued to grow rapidly despite “saturation” fears. Apple’s addition of new carrier partners in the U.S. — most recently T-Mobile — has helped the iPhone gain share consistently.

This experience also has significant implications for Apple’s success overseas. There are still numerous carriers that have yet to offer the iPhone, such as China Mobile and Japan’s NTT DoCoMo. If Apple can add more carrier partners in major international markets, it will probably boost its overall market share, offsetting the slowing growth rate of the smartphone market as a whole.

The article The iPhone Is Alive and Well (At Least in the United States) originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg owns shares of Apple and BlackBerry and is also long January 2015 $390 calls on Apple and long January 2014 $13 calls on BlackBerry. The Motley Fool recommends Apple and Google and owns shares of Apple, China Mobile, and Google.

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