Apple Lowers Revenue Guidance for Q1 2019 Citing 'Fewer iPhone Upgrades' Than Anticipated

[tito2020]

The beginning of the end.

I see lots of people going back to stock iPhone with home button what's going on ?

 

[john123]

Last I checked, sales are closely tied to earnings. As the man once said, "if you ain't selling, you ain't earning."

A can be proportional to B, across a timeline. That doesn't mean said proportion isn't 100%, totally insane.

You should probably check again. Here's a nice tutorial that (coincidentally) uses Apple as an example.

As for the "totally insane," if it wasn't insane 10 years ago, or 7 years ago, or 5 years ago, or 3 years ago, why is it insane now?

 

[itguy06]

Of course Samsung with their Note 9 and Galaxy 9 are outselling iphones like crazy. /s

Samsung outsells Apple by quite a bit. And with different models just like all the various iPhone models....

 

[BigHonkingDeal]

And so is $65B. Will that be enough this time next year? The direction is certainly not the one Apple was aiming for. They have to change strategy or TC will be replaced rather soon.

Maybe have another "Apple Watch Edition" that sold pretty well

 

[Hieveryone]

The iPhone is an increasingly mature platform. How much “better” is the XS vs the X?

The price increases didn’t help, though.

BUT WAIT FOR IT, WAIT FOR IT.....





It comes in gooooooold!!!

Lol

I honestly don’t know what Apple should do. I wish I knew.

I think it’s almost inevitable really. Like iPhones were a new thing until they’re no longer really a new thing.

Everybody’s already bought an iPhone and has one lol. How u gonna make everybody throw their iPhone away and get a new one every year?

I guess that’s the big question here.

But I honestly don’t know.

It’s like buying a car. Or washing machine. Or microwave. Or dish washer. People aren’t gonna necessarily upgrade every single year bc they usually run ok for a few years.

And then if prices go up WAY high people gonna be like my old one works good enough.

Back in the day, you sign a 2 year contract you get an iPhone 3G for $199 bucks subsidized.

Imagine if the iPhone XS was priced like that? Heck I’d get one just for fun even though I got the X.

 

[sinsin07]

This is what you stated

snip... I think subjectively, you can say it changed peoples’ lives more than anything has since maybe the car?

This is your response:

First of all, iPhone was the first phone/mobile computer like to implement everything so perfectly in marriage of hardware and software. No denying that.

Which is irrelevant to original claim, above in red.

Second, “Android” is not a single device, it’s generic software run on many devices.

And? The point is it reaches more people than iOS. The iPhone is nothing without an operating system.

Third, every modern day Android phone is based on the original iPhone.

Again, so what? This comment has nothing to do with your original claim in red above.

Fourth, Android as an OS is or at least was a direct copy of iOS.

Again this is irrelevant to your original claim.

The Internet is a great example, but it’s also not a “consumer product.”

Can't get to the iPhone without the invention of the computer.
And before that there was the plain old land line, of which there is still over a billion fixed landlines out there.

 

[I7guy]

Samsung outsells Apple by quite a bit. And with different models just like all the various iPhone models....

I know they do. But the Samsung mobile phone business has a lineup of much less expensive phones that don't really compete with their more expensive models. The profits from the mobile phone sector tell the story.

 

[Rob_2811]

Who's spinning?

You inspired me to go hunting. So the Tech Insights teardown numbers deviate from others, especially on the 8 Plus. Theirs was $367.50, while IHS had the 8 Plus at $295.44 and the 8 (not publicly available on Tech Insights) at $247.51.

So, that'd explain the discrepancies.

Read the thread.

Their GPM isnt particularly relevant across the board, nobody is complaining about the cost of a lightning cable.

The new phones, the products that actually move the needle the most, have got a margin of way north of 40% and they are more expensive than iPhones have ever been.

 

[gigapocket1]

This is one of the best things that could have happened. It forces apple to get their act together. iOS 13 will give us more/new features

 

[ZipZilla]

It's the notch, stupid.

There are 3 reasons the iPhone sales have slowed:

1.) Notch
2.) Notch
3.) Notch

Even Apple themselves acknowledge the notch as a liability, because they hide it in their advertising. Create a product people want and it will sell.

 

[cycomiko]

Pick up a 2007 iPhone and compare it alongside any new iPhone, and the reason for the price increase will be obvious.

So you are saying in 2007 the iphone was a pile of garbage rather than cutting edge?

 

[I7guy]

This is one of the best things that could have happened. It forces apple to get their act together. iOS 13 will give us more/new features

IOS 13 was already slated to provide more features. Apple seems to stay the course, though. With the September release being literally 8 months away most hardware features have already been established in conjunction with ios 13 features.

 

[iPadCary]

Pray. Again.

 

[Grolubao]

Exactly this; price is too high for general folk. Even for many who could afford it, the price is just beyond what the feel comfortable spending on a phone. It's just not worth it.

Pretty much my case. I can definitely purchase one, but I just couldn’t do it. Ended up buying a used iPhone X

 

[ryanwarsaw]

First of all, iPhone was the first phone/mobile computer like it to implement everything so perfectly in marriage of hardware and software. No denying that.

Second, “Android” is not a single device, it’s generic software run on many devices.

Third, every modern day Android phone is based on the original iPhone.

Fourth, Android as an OS is or at least was a direct copy of iOS.

The Internet is a great example, but it’s also not a “consumer product.”

Just answer me one simple thing. Do you buy at $146? Go on record.

 

[aylk]

My iphone7 plus is going for three years instead of upgrading after 2 because price.

Also, it’s a damn nice phone.

I feel exactly the same about my iPhone 6s.

 

[KPOM]

So many of you don’t get the Chinese iPhone dynamic. I do, I live there. The fall in sales in China is the doing of the Chinese government. Firstly they use their massive influence in Huawei (which wouldn’t exist without the govts say so) to develop their phone market. They then have recently started a “people’s” movement to boycott Apple because of Trumps trade war. This is all over social media here and it’s got to a point where you are seen as not patriotic to not own a Chinese phone.

They know that Apple is so big, damaging it is a huge tool to damage the US economy and they are exercising it now.

Without this influence on the market, the iPhone would be the phone of choice of people who can afford it. It still has a quiet prestige way above Huawei. Foreign stuff is still seen very much as prestige but many feel they have to toe the line.

And of course, we’re trying to reduce Huawei’s influence outside China and are actively avoiding using their technology in our 5G networks. It remains to be seen how the trade war turns out. Reportedly China is offering significant concessions they wouldn’t have dreamed of just a few months ago.

 

[latweek]

So it's OK for the previous President to shut it down for 16 days in 2013 or Clinton to shut it down in 1995-1996 for 27 days? https://en.wikipedia.org/wiki/Government_shutdowns_in_the_United_States

And most of the Dems who don't want the wall were for tough immigration measures when their guy was in office. Look up the quotes from their own mouths.

Nice dodge. When did those presidents start a trade war with the world again?

Thought not.

 

[^^BIGMac]

$84 billion and gross margin of 38 percent

Obscene.

Yet the stock falls. ::shrug::

 

[falainber]

All of this bashing...because Apple only is predicted to make $84B in one quarter.

Serves Tim right for mismanaging Apple. He might actually have to work now, instead of living off the fat of the land (that was given to him) of his largely inflated bonuses.

Of course Samsung with their Note 9 and Galaxy 9 are outselling iphones like crazy. /s

Apple is not going to make $84B. This number is for revenues. They sell $84B worth of pruducts. Good but not that good. For example, Walmart has $500B revenues per year.

 

[dgdosen]

Samsung outsells Apple by quite a bit. And with different models just like all the various iPhone models....

Samsung also reacted to the market - Customers not paying an arm and a leg for a phone - They adjusted prices. Apple? Not so much.

 

[vipergts2207]

Apple's pricing their phones like they're not the commodity that they are. Sorry, but it's not 2011 anymore. People are holding onto their phones longer because the year-to-year innovation has slowed significantly.

But yeah, the next few days is going to be a bloodletting for all the critics here who have no doubt been frothing at the mouth for precisely this sort of event.

You mean the thing tons of people had been saying for awhile now, but that people with blinders on kept denying, with "they're just rumors from supply chain sources and market analysts; they're never reliable" or the "stock manipulation" excuse? Lot's of people around here eating crow right now.

 

[golftime]

I’d be calling for Cook’s resignation if on apples board. As it is, glad I sold Apple at a high. Apple definitely needs a change at top.

The price hikes while I don’t have any problems with was handled poorly. Marketing continues to be awful. Software and services are lacking. New hardware or expanded existing categories are lacking. Apple is full of excuses.

When apple has to resort to sounding like used car salesmen at its events you know something is wrong. I know I trust very little they have to say.

Tim Cook is definitely trying to divert attention from himself by pointing the finger at China. The smoking gun was the announcement a few months ago where Apple announced they were no longer breaking down their sales numbers by product line. Apple knew that iPhone sales were way off and were trying to bury the problem, but Wall Street saw through it and their stock has been in a free fall since.

There is no doubt the market has matured over the past couple of years, but that alone doesn't explain the numbers. Bad design decisions, a drop in quality, and ridiculous pricing has all hurt Apple, all under Tim Cook's reign. Some of the Wall Street types have already begun to call for Cook's head and I would not at all be surprised to see it gain momentum, and it is more than justified.

 

[I7guy]

Apple is not going to make $84B. This number is for revenues. They sell $84B worth of pruducts. Good but not that good. For example, Walmart has $500B revenues per year.

Correct, revenues. But Apples net income is more than Walmarts.

 

[MacDanF]

Am I the only one who think Tim might raises prices even more next time to compensate ?

It’s surely easier than to increase sales in a stagnant market and the customers who hold off on a purchase will not do it forever