I still think Apple should be mindful of this
The "growth in other areas" (services) is highly dependent upon the users of iPhones
It's all intertwined, inextricably, with iPhone
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Apple CEO Tim Cook: There's a 'Lot of Innovation' Left for Future iPhone Development
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I still think Apple should be mindful of this
The "growth in other areas" (services) is highly dependent upon the users of iPhones
It's all intertwined, inextricably, with iPhone
And that is a good point. I believe there were some numbers regarding “active devices”. People with iPhones, iPads and Macs can still buy apples products a services - ignoring those who proudly proclaim “I don’t give one red cent to apple”.
How long have you been following the thread? The "record" revenue is lower when adjusted for inflation and profit topped with EPS increasing only because of buybacks.
Anyway, I'm going to stop responding to this thread because it seems like no amount of hard data can convince people.
So in a thread of posters, the “truth” is hidden in plain site but nobody is noticing. Interesting.
My first post was on Thursday - so a few days now? Not sure what that has to do with anything though - just because I don’t agree with you?
I’ve said on other threads that it looks like Apple has peaked in China - we’ll see if an “iPhone Air” redesign changes that or not. Obviously if Apple has peaked in China that is significant. But claiming Apple isn’t innovating because they aren’t publicly chasing the flavor of the month feature Android manufacturers are throwing at the wall this year is a bit silly.
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Really?
The iPhone maker saw a 2% decline in year-over-year sales, despite the broader smartphone market seeing 4% growth, as Chinese brands like Xiaomi showed remarkable growth of 12% during the same period.
Apple's Global Smartphone Share Slips as Chinese Rivals Surge
Apple's global smartphone market share declined to 18% in 2024, down from 19% the previous year, while Chinese manufacturers expanded their...www.macrumors.com
It appears you're not aware that a year ago the Chinese government has been actively "encouraging" Chinese companies purchase and use Chinese branded cell phones (like Huawei and Xiomi) and restricting use of foreign phones (such as iPhone and Samsung) - and outright banning iPhones in government entities. I would imagine that also influences what mobile phones Chinese citizens purchase.
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The typical Apple user doesn't know any better, nor are they profitable. I work with them everyday. The majority can't even tell you the difference between the iPhone 11 and the 16. Half don't know what widgets are. The other half don't even understand the AI features on the new phones. These aren't the people Apple should be focusing on.
The "techies" like myself (and you) are the reason why Apple remains profitable. The average person that upgrades their phone every 5 years isn't the reason Apple is profitable, so yes, our opinion(s) should hold weight.
Profits in wearable and accessories are down YoY. iPhone profits are down YoY. Profits in China are down YoY. All of this comes right from Apple's cashflow sheet.
The shareholders should be a bit worried that Cook doesn't have a true vision of what's next.
I agree with this general sentiment
The things they have tried for “what’s next” have really not worked and anybody being objective really should at least be a little bit concerned… Maybe not a lot, but a little bit at least
You just described my wife. My wife knows exactly when she wants to upgrade and why. I think these are a majority of iPhone users.
I’m not sure. I think it’s the “average” user who wants to use the products.
That’s okay. Sales run in cycles. If there are several consecutive quarters of down revenue in multiple sectors, I think it’s time for some concern.
Right and sure is.
You don’t know what vision cook has or not. I’m not so sure jobs had that vision you speak of. Either. Some of this is serendipitous.
Well... In addition to incorporating Globalstar satellite communications ability inside iPhone last year, next up is providing Starlink satellite communications into the phone, which is part of iOS 18.3 and should be available for use in a couple of months. Both are in addition to car crash detection and summoning emergency services notifications to summon aid to the crash site, which came about two years ago.
As expected... Apple lost a couple of percent due to Chinese government mandates requiring (or strongly suggesting) Chinese phones must be used in government/commercial activities, depending on situation. I have a feeling that might trickle down to personal use, eventually.
I don't think shareholders are too worried.
So are users abandoning iPhones en-mass, or are they simply holding on to their phones longer?
I see no evidence of the former (active user base continues to grow), and the latter doesn't seem like a bad thing. For one, it speaks to the longevity of iOS devices (better build quality, longer software support, good support from Apple Stores), and even though I am still using a 13 Pro Max from 2021, I bought an iPad Pro and S10 Apple Watch last year, while continuing to purchase apps, subscribe via iTunes, and make purchases via Apple Pay.
I may get a new MBA this year; I may finally upgrade my aging iMac, perhaps a new Apple TV if one gets released, but you know what's the one thing I won't be doing? Moving away from the Apple ecosystem.
So Apple doesn't need you to keep buying iPhones; they just need you to keep using them.
There is a common criticism that iPhone sales are also down because they are getting more expensive. I feel it's the opposite. Apple knows that upgrade cycles are lengthening regardless. Their answer to this is higher prices, more accessories and more services. Which from a business angle, is not wrong (we see Netflix answering in a similar fashion now that user growth is more or less saturated for them).
And this, I feel, is the primary reason for the fundamental disconnect between Apple and its critics. You all see things only from the POV of a user who wants the most specs possible at the lowest possible price. Apple has gone the opposite route, and elected to use its control over hardware and software to create a unique experience that the competition is hard-pressed to match. As such, I do not find it surprising that Apple can continue to maintain sales and deliver great value to users while also improving on their margins and profits (two concepts that seem mutually exclusive).
And as their latest earning results has shown, their user base generally does not seem to disagree.
This.
Years ago computer technology advanced so quickly and you could really feel and see a speed increase with a computer that was 3 years newer. Now everything is so fast, SSD drives, etc., you just don't notice much of a speed increase between models, and no real reason to upgrade unless a computer dies on you.
We have 2017 iMacs with SSD drives, EIGHT YEARS OLD, and they are quite speedy and handle presentation and video streaming like a champ. My personal computer is a 2020 M1 MacBook Air 16GB/512GB SSD I bought used for $800 in early 2021. I've had Intel MacBooks, and the M1 is incredibly speedy and runs cool (the laptop doesn't get hot). I used to buy a new Mac every 3 years but so far I've had this for 4 and can easily see it lasting 8+ years total before I end up replacing it. Just no real reason to upgrade.
and this also applies to people like me who need fast up to date computers. I am still on my M1 MBP Max 14" and for 95% of what I do runs like a champ [I hammer the thing too all day long]. I will upgrade most likely when they do a redesign and new screen tech.
I think we are at peak hardware on what we know as common technologies - laptops, desktops, phones and tablets.
The innovative changes are elsewhere in wearables and AI for the future.
Nobody is gonna buy an iPhone simply because it has the capability to use Globalstar Satellite Communications, especially if a monthly or yearly subscription is required to use it.
The more money Apple looks to extract out of people, the lower profits will go. Can’t wait for that useless feature to be implemented… It’ll go the way of the iWork Suite.