It’s understandable to have questioned the iPhone 12’s impressive results from the last financial quarter. The smartphone market has faced challenges in recent years, and even Apple wasn’t unaffected by these difficulties.

Considering the broad economic trends of the past couple of years, it appeared that the period of substantial growth driven by phone sales might be over for the company, as its expanding services sector increasingly became its main source of revenue.

My previous analysis of the mobile market, published last year, was headlined, “Even 5G couldn’t rescue smartphone sales in 2020.” The data showed two consecutive year-over-year decreases of 20% for the first two quarters, followed by a worldwide reduction of 5.7% in the third quarter. As we observed at the time, a 5.7% decline was considered a positive result in 2020.

The central idea of that article was that the COVID-19 pandemic disrupted expectations that 5G technology would revitalize smartphone sales, even if only for a short time. This assessment included the important consideration that Apple’s performance in the subsequent quarter would likely be a significant factor.

Prior to yesterday’s earnings report, Morgan Stanley commented, “The iPhone 12 has been Apple’s most successful product launch in the last five years.” This statement might have seemed exaggerated before the announcement, but in retrospect, it’s difficult to dispute, given that five years have elapsed since the introduction of the original Apple Watch.

While the iPhone X represented a significant shift for the company, the iPhone 12 has proven to be a substantial success. The recent introduction of Apple Silicon Macs boosted sales in the computer category by 21% year over year, but the company’s computer business remains relatively small compared to its phone sales.

In the final quarter of 2020, Apple’s earnings exceeded $100 billion for the first time. This was largely due to $65.68 billion in revenue generated by iPhones alone, surpassing the company’s projections. Industry analysts suggest this strong holiday quarter signals the start of a “supercycle” for the product line. We have previously discussed the various factors that have caused consumers to extend their upgrade cycles (economic conditions, high device costs, increased hardware durability), but the arrival of a major advancement like 5G provided Apple users with the most compelling reason to upgrade in years.

Apple wasn’t the first company to incorporate 5G into its handsets—in fact, it was likely the last major smartphone manufacturer to effectively market 5G as a noteworthy new feature. However, circumstances aligned favorably, even in light of pandemic-related manufacturing delays that postponed the product’s release.

Notably, 5G networks are now considerably more widespread in many regions than they were when Samsung launched its first 5G phone in mid-2019. Mobile carriers have played a key role in educating consumers about the benefits of this next-generation technology. The late-October release date positioned the device perfectly for strong holiday sales. Furthermore, the company simultaneously released four different models with the technology.

A significant aspect of 5G is its rapid integration into mid-range smartphones, so it’s not surprising that Apple introduced a 5G handset priced at $799. The era of relying solely on premium flagship sales appears to be ending for many companies.

The situation in China is also noteworthy. The company had experienced disappointing sales in the world’s largest smartphone market. However, this quarter saw a 57% year-over-year increase. This surge seems largely attributable to accumulated demand for a 5G-enabled iPhone. Tim Cook mentioned in a Reuters interview this week, “We had two of the top-three selling smartphones in urban China.”

Regarding the broader industry implications, Apple’s success this quarter was a confluence of favorable conditions. Numerous internal and external factors combined to create such an unexpectedly strong quarter. Given Apple’s unique position in the industry, it may not be prudent to use its performance as a predictor of future trends.

Nevertheless, it’s reasonable to anticipate a recovery for the industry as a whole in 2021. Last year, Canalys predicted a 9.9% increase in smartphone sales for the year, following an overall yearly decline of 10.7%. iPhone sales will undoubtedly contribute to this growth, but several broader factors will also play a role in the rebound.

The increasing availability of vaccines will likely contribute to greater economic stability and a return to more normal conditions, which should stimulate demand for mobile sales. With 5G adoption growing rapidly in China and the U.S., other markets, such as Europe, are expected to experience significant growth in 2021.

However, I would advise caution against expecting sustained growth in this category. “Supercycles” are exceptional events and don’t occur frequently. While 5G and other factors may be driving a sales recovery, next-generation wireless technology doesn’t emerge every year. Manufacturers will need to identify compelling reasons to continue attracting buyers.