how about "We'll make better products, and win sales by making compelling & innovative things you would want to buy?"
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Apple Lowers Revenue Guidance for Q1 2019 Citing 'Fewer iPhone Upgrades' Than Anticipated
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Corporate-speak for: "Our iPhones didn't sell as well because they're overpriced with no real added value, folks are moving away from the Apple Watch because it's a boring black square on your wrist, the iPad Pro bends now as a standard feature (or should I say "normal"), the MacBook Air makes people frightened because of the issues with the MacBook Pro, and the AirPods are just stupid. Oh, and did I mention that our overall quality sucks, our iOS system hasn't changed substantially since the iPod, we take you for granted, and we think all of this is worth premium pricing?"
The main issue appears to be sales in China. The trade war as well as Chinese nationalism has consumers there buying more phones more from Chinese companies than from Apple since it’s US-based.
However, it looks like they did somewhat acknowledge lower than expected sales in other developed markets as well.
From a US perspective on why I (and many others did not upgrade):
- Since raising the cost of entry from the traditional $649 to $999 with the X and XS, many people finally decided that the price was too high to justify yearly upgrades. Add in the fact the the 7 and 8 are still “good enough” and there really isn’t any major cost/value reason to buy the new $1000+ phones.
- There is still a significant amount of consumers who are not fans of the X/Xr/XS design and prefer to stick with Touch ID based devices.
- The Xr which is supposed to be the new “cheaper” phone is priced higher than the traditional $649 cost of entry premium phone (while not offering anything of signifigance over the iPhone 7 models).
- The smartphone market overall appears to have matured and the addition of new essential features has hit a plateau. At the core, all you’re getting now is spec increases and the XS/Xr offered no new novelty feature that previous S model iPhones had (Siri, Touch ID, or even 3D Touch). So what’s the incentive for paying an extra $300 for spec increases when the 7/8 are still fast enough?
Apple was fortunate with the X itself last year that the US market had changed with Tmobile and other carriers now doing the “$0 down no APR” monthly payments in tandem with massive “yearly iPhone upgrade promos” but however it looks like even at $0 upfront Apple is reaching the maximum price that consumers are willing to pay for phones. Of course they have enough money to be fine for years, maybe even a decade or more, but they should tread carefully with the pricing strategy going forward. If a recession hits the US in the next year or two it could get particularly bad as people will definitely cutback on $1000+ phones and instead hold onto their old iPhones. In the last recession the market was different; the iPhone 4 was a major new and iconic design, there was practically no competitor who could offer an alternative anywhere near the iPhone experience, and many people still did not have smartphones at all so there was major room for growth.
However, it looks like they did somewhat acknowledge lower than expected sales in other developed markets as well.
From a US perspective on why I (and many others did not upgrade):
- Since raising the cost of entry from the traditional $649 to $999 with the X and XS, many people finally decided that the price was too high to justify yearly upgrades. Add in the fact the the 7 and 8 are still “good enough” and there really isn’t any major cost/value reason to buy the new $1000+ phones.
- There is still a significant amount of consumers who are not fans of the X/Xr/XS design and prefer to stick with Touch ID based devices.
- The Xr which is supposed to be the new “cheaper” phone is priced higher than the traditional $649 cost of entry premium phone (while not offering anything of signifigance over the iPhone 7 models).
- The smartphone market overall appears to have matured and the addition of new essential features has hit a plateau. At the core, all you’re getting now is spec increases and the XS/Xr offered no new novelty feature that previous S model iPhones had (Siri, Touch ID, or even 3D Touch). So what’s the incentive for paying an extra $300 for spec increases when the 7/8 are still fast enough?
Apple was fortunate with the X itself last year that the US market had changed with Tmobile and other carriers now doing the “$0 down no APR” monthly payments in tandem with massive “yearly iPhone upgrade promos” but however it looks like even at $0 upfront Apple is reaching the maximum price that consumers are willing to pay for phones. Of course they have enough money to be fine for years, maybe even a decade or more, but they should tread carefully with the pricing strategy going forward. If a recession hits the US in the next year or two it could get particularly bad as people will definitely cutback on $1000+ phones and instead hold onto their old iPhones. In the last recession the market was different; the iPhone 4 was a major new and iconic design, there was practically no competitor who could offer an alternative anywhere near the iPhone experience, and many people still did not have smartphones at all so there was major room for growth.
You hit the nail on the head could not have said it any better.
I never understood the watch. They had me with iPhone, iPod Touch, and iPad. But a watch? Never understood that one when my phone is either in my hand or a second away from me picking it up.
Give me a break. Pricing is FLUID. You alter and change it. It's not DOOM, it's called the frickin' free market. My god. I remember days when Apple had negative revenue and certain people said, 'they are done, chop it up, sell it off'. They have 240 billion cash on hand and are still profitable. How exactly is this an end? Silly. Take an economics course.
Serious question. Where does this pricing end? Quick poll. Anyone pre-ordering the new $1499 iPhone BS, or premium $1799 BS2? I mean, what is the number we all say "hell no" to, and speak with our wallets not just our mouths?
I bought some stock instead of getting two new iPhone X Max. I am now down around the amount of two new X Max. I guess things all work out in the end. lol
At least the loss is tax deductible.
My new cutoff is $1,499. For something I’m on dozens of times a day and will have for three years the cost per day is nominal.
I think many have already spoken with their wallets over the current offerings.
All-in costs? This is a computer we are talking about, not the Fountain of Youth... As much as I love Apple computers, or did, the all-in costs are not remotely in-line with tech from most other companies. Period. Not even close.
Yeah I remember Cook talking about the price per day. Maybe Apple could offer iPhone financing for 60 cents a day or whatever his lowish estimate was.
Deserved.
That's what happens when you make a crappy phone. Where's that headphone jack?
That's what happens when you make a crappy phone. Where's that headphone jack?
I've had two iterations of the Apple Watch. Before that, I had a great collection of beautiful watches. I've since moved back to them. A watch these days is a piece of jewelry. As you said, most of the rest is nearby. I see my son's Huawei watch (that we bought him) and it makes me jealous.
I know you are joking, but the funny part is, he most likely is very aware of this. It's not rocket science that the ever-growing apple tax is hurting a once great company at the moment.
Unfortunately, they don't seem to have an option, as the growing tax is clearly there to make up for lack of sales. Which is down to lack of real innovation as of late, they are being outdone by even, shudders, microsoft these days.
So, to keep the stockholders happy, they need to turn up the prices to make up for the lack of organic growth due to market "saturation".
I jumped ship last month, a 5K retina imac, two macbook pros and an macbook air all say left the property, to gether with a couple of iPhone X's. And, what should worry mr. Cook abit about that, is I could easily afford them, it was a move made out of principle. I don't want to fund their lack of new product development.