Apple ((NASDAQ: AAPL) delivered blowout results for the first quarter of fiscal 2021, which ended December 26, 2020, thanks to the massive success of its 5G-enabled iPhone 12 lineup.

The smartphone giant has taken up his first quarter ever With sales exceeding $ 100 billion, sales increased 21% year over year to $ 111 billion. Apple’s iPhone sales increased 17% year over year to nearly $ 66 billion.

The success of the iPhone 12 is not surprising. Apple’s attractive price tag gave its huge installed user base a good reason to upgrade. More importantly, the company can maintain its tremendous growth momentum for the iPhone and is expected to dominate the fast-growing 5G smartphone market.

Image source: Getty Images.

The iPhone 12 made waves in the 5G market

The launch of the iPhone 12 models sent Apple up the 5G smartphone sales charts within a few weeks of launch. The devices built on their initial success and helped Apple build its lead at the top of the smartphone sales charts in the fourth quarter of 2020.

IDC estimates that Apple shipped 90.1 million iPhones worldwide in the fourth quarter of last year, up 22.2% over the same period last year. This helped Apple capture 23.4% of global smartphone space in the quarter, compared to 19.9% ​​of the market in the year-ago period.

Second place SamsungDeliveries grew significantly more slowly than in the same period of the previous year at 6.2%. The South Korean giant ended the quarter shipping 73.9 million units, and its market share rose just 30 basis points year over year to 19.1%.

Counterpoint Research estimates that 5G devices represented 34% of global smartphone shipments of 396 million units in the fourth quarter of 2020. This was a huge improvement over 5G smartphone shipments of just 24.1 million units in the first quarter of 2020, when Samsung dominated the market with just over a third of the space under its control.

Apple thus prevailed over its biggest competitor in a quarter when sales of 5G smartphones increased. Don’t be surprised if the iPhone maker widens the void in 2021.

Why Apple’s 5G Dominance Continues

Two specific factors are helping Apple to capture a nice slice of the 5G smartphone market. First, the company got the prices right for its new devices with the entry-level iPhone 12 Mini from $ 699. The standard iPhone 12 starts at $ 799, followed by the iPhone 12 Pro for $ 999 and the Pro Max for $ 1,099.

These prices are competitive compared to the latest flagship devices recently unveiled by Samsung. The Galaxy S21 5G is priced at $ 799 in the US, followed by the S21 + 5G for $ 999 and the S21 Ultra 5G for $ 1,199.

Second, Apple has installed a huge number of iPhone users waiting to upgrade to a 5G device. Daniel Ives of Wedbush Securities estimates that a third of Apple’s 1 billion base of iPhones installed are in an upgrade window. That could increase iPhone shipments to 250 million units in 2021. That would be a nice jump over Apple’s 206 million iPhones, IDC reports that shipments are slated for 2020.

Third-party research predicts that thanks to these advantages, Apple could capture 35% of the 5G smartphone market in 2021. That would be a big deal because 5G smartphones are expected to be sold take off big time This year, Strategy Analytics is forecasting 150% growth from shipping 250 million units in 2020.

Samsung, on the other hand, is expected to have problems in 2021 despite the 5G surge. The company is expected to ship just 26 million units of its Galaxy S21 devices this year, suggesting that Apple could remain the frontrunner in the 5G smartphone space.

Overall, the iPhone maker can sustain the tremendous growth seen last quarter by beating its closest rival and capturing a larger share of a burgeoning 5G smartphone market, making Apple a leader Top 5G share that investors should consider having in their portfolios.

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