Jobs was indeed a great, visionary CEO.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple Lowers Revenue Guidance for Q1 2019 Citing 'Fewer iPhone Upgrades' Than Anticipated
- Thread starter MacRumors
- Start date
- Sort by reaction score
Jobs was indeed a great, visionary CEO.
I said Apple will have lower than expected iPhone revenue, from actual Data ( again not rumours ) sources. A *few* refuse to believe it and flat out attack me as utter rubbish and non sense. And I am a IDIOTS and ALWAYS wrong...( I am reading the thread and they are now scrambling for excuses to save face )
I wish I had posted earlier on my predicted numbers. 5% lower revenue was the best guidance I had calculated and it was exactly right. The only difference is I thought Non-iPhone Revenue had 25% growth and iPhone had deeper cuts.
Yeah. So much I need to open a bottle of Champagne now.
I wish I had posted earlier on my predicted numbers. 5% lower revenue was the best guidance I had calculated and it was exactly right. The only difference is I thought Non-iPhone Revenue had 25% growth and iPhone had deeper cuts.
Yeah. So much I need to open a bottle of Champagne now.
This is one striking parallel to Nokia before their downfall.
There was a continue trend of fewer subsidies, and as with all trend lines there will be a breaking point that make a measurable impact. As contract prices continue to fall or flat ( while having an increasing operation cost from Salary to Infrastructure upgrade ), along with stagnant wages in most part of the world, there will be a point where consumer thought buying a phone with contract no longer makes sense. For example you want to keep using your iPhone for longer than 24 months so instead of buying another with a little carrier subsidies you went with simple contract terms which as far as I know, ( UK, EU, China, Japan etc ) all offer better values.
But like you said it is highly unlikely that carrier subsides are to blame.
For example, the issue might be that with the price of iPhone 8 (599$, which is by the way from late 2017) costs more than Oneplus 6T (549$). So if the there is no issue of switching from iOS to Android, you get a lot more bang for your buck.
Yeah I’m a current sub. He still talks about Facebook a bit which I skim over. I’d say in a given week, I find about 2 of his 4 articles informative for me.
That is a bit misleading....it is not like Apple still has those shares when they buy them. They get retired.
As others have said, it's also due to Apple trying to take its average selling price of each new model of phone as high as it thinks that the market can bear, to compensate for a slowing smartphone market overall. And that approach has backfired.
And I suspect not providing a clear upgrade path for 4.7 and 4 inch phone users and trying to upsell them to the Plus sized new equivalent (i.e. the XR) has backfired too.
Plus people keeping their phones for longer etc. I know that with a new battery my 7 feels as good as new. However, if I had a Face ID equivalent of the 4.7 iPhone to upgrade to, I know that I most likely would've caved in.
And I suspect not providing a clear upgrade path for 4.7 and 4 inch phone users and trying to upsell them to the Plus sized new equivalent (i.e. the XR) has backfired too.
Plus people keeping their phones for longer etc. I know that with a new battery my 7 feels as good as new. However, if I had a Face ID equivalent of the 4.7 iPhone to upgrade to, I know that I most likely would've caved in.
Timmy is in complete damage control mode and it's hysterical to watch. Nero himself couldn't have been more obtuse.
[doublepost=1546497450][/doublepost]
[doublepost=1546497450][/doublepost]
Lol. It's cute you're blaming this on trade tariffs and not on Apple's asininely high prices.
It’s all good news to me anyways. Hopefully apple continues to sink. It’ll breed some innovation perhaps. Or at least some needed change. That’s one exec team that deserves what’s happening.
You need to keep mind that RMB has been waken for quite sometime right now. Chinese government has been flooded RMB to the market and value of RMB has been lower significantly over few years ago.
Seriously ... if the prices remain the same this year, I’m probably getting a Pixel 4 or Sammy phone. If they don’t support NVIDIA via eGPUs this year or if AMD doesn’t release something at least on par with the 1080, I’m probably trading my maxed out 15” MBP for a maxed out Razer Blade ... with a lot of coin to spare. I’m crossing my fingers that I don’t have to go those routes, but Apple is really putting in the extra effort to push people away these last couple of years. I commend Apple for their fight for privacy, but they’re really messing up in a lot of others areas. :/
Quote from the letter:
The fear investors may have, depending on which development markets are being referenced, is that the emerging markets, being the most sensitive to price, are leading indicators of a bad 2019 for Apple. Nothing appears to be getting better.
- The U.S. government is experiencing it's 3rd shutdown in one year.
- The U.S. election season is starting, meaning less room for politicians to maneuver and compromise.
- The U.S. and China could be heading toward even more tariffs.
- A hard Brexit is possible
- India is still playing hard ball with Apple
- Huawei is definitely on the move to gain market share in China, India, and on the African continent
- Foreign exchange rates are still hurting sales outside of the United States
People read the article. Apple overestimated the purchasing power of its customers (regarding the iPhone). Those constrains that you were talking was something else not the iPhone. Read the article carefully.
Not be direct or maybe I will be — are you a international soothsayer ? How would you or anyone know all the ins and outs of every single carriers offers globally? Do you even know just how many they are?
I mean forest through the trees people.
It’s mindboggling to think that a corporation whether it’s Tim Cook or anyone else just somehow sits there and just makes stuff up...
I mean really folks. C’mon. really !
And earth to MANY OF YOU — if he is including AMERICAN CARRIERS - yes to many many iPhone owners that have not upgraded in years - YES years - they would
NOT be inclined to do so without the old subsidy paradigm - I mean what is so “shocking and untrue” about that?
There’s no doubt the lack of subsidies for
cell phone carriers is now having a material impact on ANYONES decision to upgrade or not. Not every consumer upgrades their electronics yearly, every other year or even every three years.
The lack of getting a $1k phone for $250 as a carrier subsidy IS having a serious impact on upgrades — period.
That is due to tensions between the US and China and is affecting the entire tech industry.
If you have facts on the subsidy change from 2017 to 2018 being significant enough to affect iPhone XS/XR sales, that'd be helpful that's why I asked. I'd like to know if someone was affected with a specific example. Your conjecture and rambling isn't helpful, lets see facts.
Nice try. Your assertion I'm blaming the situation on trade tariffs is simply a lie. I am saying that when trade tariffs kick in starting March things will get a lot worse. Pay attention to the word starting.
You may want to educate yourself and understand how consumer spending in China has massively declined starting in October of last year and progressively getting worse, which has greatly and adversely impacted iPhone sales in China. It takes just a bit of reading, assuming you really want to understand the underlying forces at play.
Hey genius, how about YOU read the entire article before posting something completely false :
While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be
Not really surprising... this is good though as that share price is only going to go South even more now, certainly isn’t going North anytime soon, and as shares are what pays the board the most money, it’s what they deserve for the way they’ve run the company.
Wrong.
It’s a contributing factor, yes. But Apples stock took a hit after the market reacted negatively to Apples announcement they would no longer disclose unit sales for iPhone.
Many took this as a sign Apple expected unit sales to decline year on year, and it seems now they were right. What’s worse now though, is it appears the decline is now even more than Apple predicted which will hurt the stock price again (as seen by the 7.5% decline in out of hours).
It’s not the end of the World for Apple and with the right releases at the right price points and they could recover pretty quickly. It all depends now how they respond this year - which the jury is still out on. In recent years, Apple’s confidence in its products as turned to blind arrogance so hopefully this will be a little wake up call for them.
It’s interesting to see Tim claiming that products like the AW4 and iPad Pro are in short supply and thus not reaching the sales number they wanted. Here in Canada, the new iPad pros have been in stock since day one and not a single configuration has sold out in any stores nearby
[doublepost=1546500648][/doublepost]How long before people start talking about replacing Tim Cook?
[doublepost=1546500648][/doublepost]How long before people start talking about replacing Tim Cook?
