Apple Lowering iPhone Prices in Some International Markets to Boost Sales

[2GoldFish]

Apple told us they have 90% retention on iPhone, so I'm confident people will stay with Apple, because they have so far.

Based on their new margin disclosure for services, the services revenue is literally twice as profitable as hardware revenue, so they don't have to grow at the same rate to be more profitable over time. Think of that?

Also, hardware sales can spike up depending on features offered, promotions, and other consumer behavior. The rate of decline they saw this quarter is not likely to happen over time. Services revenue has been shown to be much more stable, which is why Apple is moving in this direction.

If Apple services are available on other platforms, that's great for the services narrative. They can provide their services to even more people and entice them to come to iOS for the "full" experience. They can bifurcate features, etc. I would be in favor of this because I believe in the services narrative. It's extremely powerful and will command a higher multiple for the earnings.

Microsoft has done this brilliantly, as an example. In fact, Microsoft is valued higher than Apple and just made $8B in profit to Apple's $20B. If Apple can get the Microsoft valuation over time, the stock will increase 3X.

Again (for the last time), customers retention rate in the future does not depend on historical data.

If a customer cannot justify the value of a product, then they are likely to walk away. Customers aren’t stupid (most of them anyway).

 

[Baymowe335]

Again (for the last time), customers retention rate in the future does not depend on historical data.

If a customer cannot justify the value of a product, then they are likely to walk away. Customers aren’t stupid (most of them anyway).

So you’re just a permanent bear, predicting doom until you’re right. Got it.

Well, customers aren’t walking alway today.

 

[2GoldFish]

So you’re just a permanent bear, predicting doom until you’re right. Got it.

Well, customers aren’t walking alway today.

If I am a permanent bear, you are the biggest Apple fan boy. Does it work?

Coming from someone who said that 'guidance' should not be used as 'forecast numbers', if I have the chance I will be the first one to vote you in to replace Timmy.

 

[Baymowe335]

If I am a permanent bear, you are the biggest Apple fan boy. Does it work?

Coming from someone who said that 'guidance' should not be used as 'forecast numbers', if I have the chance I will be the first one to vote you in to replace Timmy.

This is the real world. Anything can happen. Apple is executing. You’re welcome to short the stock from here.

 

[2GoldFish]

This is the real world. Anything can happen. Apple is executing. You’re welcome to short the stock from here.

Off topic. Do you think that Apple will introduce a foldable display phone in the next, 2 years? (Not a trick question, for a change)

 

[Baymowe335]

Off topic. Do you think that Apple will introduce a foldable display phone in the next, 2 years? (Not a trick question, for a change)

I have no idea. I know whatever Apple releases, it will work better than the competition. Foldable has a lot of issues to overcome and I’m not sure if people even want it.

 

[2GoldFish]

I have no idea. I know whatever Apple releases, it will work better than the competition. Foldable has a lot of issues to overcome and I’m not sure if people even want it.

Yupe, agree re Apple would make it better than competitors.

LOOK! We finally agreed on something! LOL

 

[jpn]

there is a huge, real opportunity in all this pricing mess that apple has gotten itself into.

in 2019 September, for all iPhone launch models, give realistic pricing that is market driven (not apple internal cool-aid driven), and at the same time, give consumers what they most want:

(1) good battery life
(2) a range of sizes: SE size, 6/6s/7/8, X/Xs, and X max/Xs max
No more Xr madness.
(3) ability to keep Touch ID rather than force into Face ID
(4) no notch on at least some models

this will finally generate a true mother of all upgrades cycles for users going back to 2012.

5G can easily wait until 2020.
and we dont want any 3 camera system that makes its stick out any more than it already does.

 

[theshiver]

Prices from Turkish Apple site - apple.com.tr

iPhone Xs - starting from: 9.899 TL (1.903 USD*)
iPhone Xs Max - starting from: 10.799 TL (2.076 USD*)

* $1 = 5,20 TL

PS: Minimum wage in Turkey: 2.020 TL

 

[macduke]

If you feel the price is too high in the USA then remember that in Europe we always get the same increases, usually more. The USA gets 100 USD extra, we get more 120, 130, it depends. And then the vat on top of that which being a percentage tax around 20% depending on country compounds even stronger.
And the cherry on top reduced services from Apple's ecosystem.

I mean, I get that your prices have gone up more, but that doesn't preclude me from complaining about my prices going up. Money is money and value is value. The value is lacking.
[doublepost=1548951078][/doublepost]

He knows people here will buy it no matter the price. If sales are still strong in the US it's likely they will use the higher margins here to offset lower margins in other countries.

We'll see how long that works for them.
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For an iPhone XS Brazilians pay $1960 to $2499, when Americans pay half the price $999 to $1349.

Lowering the price for the Brazilians doesn't sound like screwing your home country to me.

They probably do this because most Brazilians can't even afford the iPhone at $999, so they are price gouging the rich in your country.
[doublepost=1548951363][/doublepost]

Do you want the majority of the world's population to work more for an iPhone than you do?
Does that make you feel good?
Probably.
There are even supposed to be ideologues who fuel this conflict once a cold war of customs duty and walls breaks out.

I don't care what other people are paying to be honest. I look after myself and my family. Most janitors work harder than their managers. Doesn't mean they should be paid more. And it's a hell of a thing to assume that it makes me feel good that other people have it worse than me. I'm pretty neutral about it. I figure if you work hard enough you can do about anything.

 

[555gallardo]

Is this before or after VAT?

After. As a couple of users here have mentioned later, whereas in Europe the VAT is already included, in US it's not. How does it work then, if you're foreign, visit US and buy something?

 

[Juicy Box]

How does it work then, if you're foreign, visit US and buy something?

I think then the foreign buyer would just pay the sales tax of the state.

Many states in the US has a “Use Tax”, but aside from CPAs and some businesses, not one actually pays it and it is too hard to enforce.

Basically means I’d you buy goods from a stare that has a lower sales tax (VAT), then you must claim that on your tax returns and pay the difference then.

Most people in the US never even heard of this tax, let alone pay it.

Maybe some other countries have similar tax laws, and maybe people don’t pay it either.