Well when the one device that drives over 60% of your entire companies earnings falls short of estimated sales, and then you announce you will not be advising any of that same devices sales figures in future earnings calls. I’m surprised it didn’t drop 20%..
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Apple Loses Trillion Dollar Company Status Due to 10% Slide on Stock Market Since Thursday
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Its always a risk when you tell your customers that all your newest products are only for the very rich and that they should buy your products from a few years ago at silly prices.
Bleeding the customers dry that are happy to pay whatever you ask can only work for so long until there aren't enough of them to prop you up.
Apple have always been expensive but you got something for that 20% premium. Its getting to the point where its a ~40% premium for little benefit.
That being said, this dip in stock price isn't an issue in the short term and i'm sure it will bounce back, I just think that long term apple will slowly fade into irrelevance unless they either up their innovation massively or start making their products more affordable for their customer base.
Bleeding the customers dry that are happy to pay whatever you ask can only work for so long until there aren't enough of them to prop you up.
Apple have always been expensive but you got something for that 20% premium. Its getting to the point where its a ~40% premium for little benefit.
That being said, this dip in stock price isn't an issue in the short term and i'm sure it will bounce back, I just think that long term apple will slowly fade into irrelevance unless they either up their innovation massively or start making their products more affordable for their customer base.
Justified!! Apple have the best products in tech, but prices has gone mad!!! I was looking to buy a Mac mini and the MBA, but when i saw the price, and Specs IT was a NoGo! I cant justify those prices, even if the products are superior to everything else. I hope Apple come to their senses.
No, they have slid down a lot further since their peak.
Interesting to see the ADL quickly pointing at how Amazon and the like don't report their figures so why should Apple. Those companies have never spent their time crowing about OS adoption rates, fragmentation or best selling ### ever etc.. Apple always loved bragging about numbers but clearly now want to move away. They were far too dependent on iPhone sales in previous years hence the big push on services, with great success.
With the iterative upgrades it was always likely that iPhone sales were going to peak out at some point, having dripped out the upgrades they seem to of come to the end of the road for the big hitting increments. I am still of the opinion that the maxing out the screen size was one of the last big steps they could make. It's much the same for all phones now, it really feels like design innovations have plateaued. Both Apple an Google have released new phones that have features that could be enabled for older models but won't - milking their customers. Folding phones is the next big design step by the sound of it, time will tell on that...
So the two main reasons for Apple hiding numbers now after over 10 years of bragging is they clearly expect a drop in iPhone sales plus they want to shift focus more into being a service based company.
It's almost as if they used the bezel shrinking as an opportunity to peak their prices for iPhones, figuring they could push the customer harder. Their own two year super cycle.
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Makes me wonder if this has something to do with all the rumors about foldable phone and recent image that Samsung teases about foldable phone. If this is going mainstream this is beyond Apple and that's a question if they have something to counter this kind of technology. If not Apple will be having a hard time justifying their $1000 phone to consumers.
Apple didn't fall short of anything on earnings. They far exceeded anyone's expectations for earnings in the last quarter.
Apple also did not fall short on revenue either. They exceeded their guidance and beat the street's estimates for revenue.
What they did, however, was to put out guidance that met with the street's consensus, which was raised over the last couple of months.
Just my opinion, but to me, no one wants a foldable phone. At least no enough folks to make it a success.
Here's Apple's dilemma on bleeding edge stuff like this. Apple cannot release an iPhone with bleeding edge tech precisely because they need to be able to manufacture 50,000,000 of them for the first quarter of sales. No one will be able to manufacture enough of these bleeding edge parts to meet Apple's demands.
No other company has this dilemma. Samsung can release a niche phone like this and sell 6,000,000 and be hailed as an innovator. If Apple sells 6,000,000 of anything, it's viewed as an unmitigated disaster.
EDIT - should have said "unmitigated disaster"
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You're dreaming. It's a good dream, but a dream nonetheless.
Wow never realised Amazon had dipped so much.
All the FANGS have dipped quite a bit. Netflix the least. I'd avoid tech shares atm and await the inevitable correction.
Nice opportunity! I just snatched up a few more shares!
You've got that backwards. Share buyback means fewer shares outstanding, meaning they need to have a higher share price to reach $1T market cap than if they hadn't had a buyback. Market cap is simply the number of shares outstanding times the share price.
Totally agree. And how much is this rather limited edition thing going to cost? The rumours are around $2000. If that’s the case I think I’ll stick to the “cheap” $1000-ish phones for a while.
https://www.uswitch.com/mobiles/new...folding-phone-could-cost-as-much-as-usd2-000/
That's the point; this jack-up-the-prices-cause-the-suckers-will-keep-buying strategy may work in the short term, but could cost them in the long run. Sure, they've convinced customers to pony up $1,000 or more on a phone (including me last year, though I couldn't believe I spent that much), but there are a few things that aren't obvious.
- How much longer will people hold onto their phones, tablets, or computers because of the higher prices?
- How many people switched or will switch to competitors because of the higher prices?
- How many people never bought their first Apple phone, tablet, or computer, and thus will never buy their second, third, and so on because of the higher prices? In other words, how many people will not become loyal Apple customers, because they never became Apple customers to begin with?
- What price is too high of a price even for loyal Apple customers? $1,000? $1,500? $2,000?
I've been a die hard Apple user/customer since my dad bought an Apple II+ in the 1980s, but even I have my breaking point, as does every other customer. Lately, Apple seems like it's trying to find that breaking point, while the CFO seems like he doesn't care about the customers they lose; they're just paupers, anyway.
It's a nice thought but I really doubt they've learned that - I think they've learned they can.
Good for them, not so great for the casuals of whom most aren't the wiser.
Why do you want a company to fail? Will that somehow help make you happy? Think about it.
I might not like a particular airline or car manufacturer, but me wanting one to fail would just be bizarre.
Mkt studies will prove different and be more precise in your initial asessment, but the rest of your statement is right.
Apple could have chosen to stay a premium brand but chose to go for volume where its insane success now has become its weakness: has become such a moloch that it’s defending marketshare and can’t innovate at that scale - so it only files patents to discourage others, i.e. to defend itself.
Smaller companies will attack, innovate and seek to disrupt their business model and at some moment they will succeed and take over.
Going premium while being a mass supplier is the end game. That model can not endure very long.
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Ah.. that’s the definite sign the dip has completed
NOT
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