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

[ROGmaster]

You’ll be back. Give it a few months ‘lag-time’ so to speak. You’ll start to feel the Android tax. It’s not in the form of money, but in the form of lag and blood pressure lol.

It looks like you've never seen a Mi A2, let alone use one.
What lag are you talking about?
In my experience Android One phones get updated every month to the newest security patch and also receive "performance/optimization" improvements. So the Mi A2 actually gets better in time not slower and with lag.
Also very important, the Mi A2 is a 200$ phone.
So based on these facts I doubt he will be back.

 

[Roadstar]

The problem is that even the cheapest iPhone is going to be out of the budget for the majority of people in India.

I feel Apple is better off trying to market them a cellular Apple Watch than a budget iPhone.

But you still need an iPhone to set up and do anything meaningful with an Apple Watch, cellular or not.

 

[Michael Goff]

You know, my iPhone used to be great until I learned they didn’t sell enough. I should be jumping ship to Android. My phone basically caught fire from Apple’s financial miss.

 

[LovingTeddy]

You’ll be back. Give it a few months ‘lag-time’ so to speak. You’ll start to feel the Android tax. It’s not in the form of money, but in the form of lag and blood pressure lol.
[doublepost=1546548904][/doublepost]

They might introduce a bundle into it. Buy an iPhone get a year of our new TV streaming service. Or they might start financing your phone themselves instead of your carrier.

I have used Android phone range from 200 dollars Xiaomi Mi A2 to 800+ Huawei P20 Plus, I have never really experience lag time. However, I do notice iPhone 6 lags whole lot. I do not think you have used any Android at all. So please use it and post.

I will settle with Amazon, Netflix. I don’t need something only can be viewed on Apple devices. Cross platfrom is my top consideration. Never fun locked in one platform.
[doublepost=1546556637][/doublepost]

You know, my iPhone used to be great until I learned they didn’t sell enough. I should be jumping ship to Android. My phone basically caught fire from Apple’s financial miss.

By all means, who cares. I get you like your iPhone, I will settle with my Android.
[doublepost=1546556772][/doublepost]

It looks like you've never seen a Mi A2, let alone use one.
What lag are you talking about?
In my experience Android One phones get updated every month to the newest security patch and also receive "performance/optimization" improvements. So the Mi A2 actually gets better in time not slower and with lag.
Also very important, the Mi A2 is a 200$ phone.
So based on these facts I doubt he will be back.

He does not know and he does need to knows. He can only live in his small world and believe Apple is the best. Which is fine, he can use whatever he want.

It is always fun to watch someone so blindly believes something that is completely false. It is like cult or something.

 

[Tinmania]

Old tech gets cheaper. New tech is always more expensive.

Is that why I can buy a 4K TV today, with new tech, for less than half the price that a 1080P set would have cost in 2009?



Mike

 

[Mainsail]

This price thing is a bit of a mystery to me. Let's take a typical consumer with an iPhone and a MacBook Air. Let's figure on keeping the iPhone for 3 years and the MacBook Air for 6 years

• Three years ago, the iPhone 6s plus 5.5 in screen with 16GB storage sold for $750. The iPhone Xr 6.1 in screen with 64 GB sells for $750.
• Six years ago, the base 13 in 2012 MBA sold for $1200. The 2018 MBA sells for $1200.

Has Apple's offerings really increased that much for the typical consumer? Please no snarky responses.....just honestly trying to understand this from the everyday users' perspective.

I have sent two kids to college with MacBook Airs at about the $1,200 price point. These machine have been great values. Our youngest will be going to college next year, and he wants a new MBA to replace his 7 year old machine that we bought for his middle school laptop program. I really don't see the new offering being a worse value than the old offering.......provided it is reliable......which we need to evaluate over the next few months (the keyboard thing makes me nervous).

 

[I7guy]

Is that why I can buy a 4K TV today, with new tech, for less than half the price that a 1080P set would have cost in 2009?



Mike

No, that’s why an oled tv of the same size as an lcd tv is more expensive. Why newly released intel processors cost more than older processors etc. and why 4K TVs when they were introduced were more expensive than HD TVs. And why plasma TVs were expensive when introduced.

 

[Michael Goff]

I have used Android phone range from 200 dollars Xiaomi Mi A2 to 800+ Huawei P20 Plus, I have never really experience lag time. However, I do notice iPhone 6 lags whole lot. I do not think you have used any Android at all. So please use it and post.

I will settle with Amazon, Netflix. I don’t need something only can be viewed on Apple devices. Cross platfrom is my top consideration. Never fun locked in one platform.
[doublepost=1546556637][/doublepost]

By all means, who cares. I get you like your iPhone, I will settle with my Android.
[doublepost=1546556772][/doublepost]

He does not know and he does need to knows. He can only live in his small world and believe Apple is the best. Which is fine, he can use whatever he want.

It is always fun to watch someone so blindly believes something that is completely false. It is like cult or something.

You’re not settling. You’re getting what you like best.

 

[Shiro_Simba]

Throttling? As opposed to your android phone just “dying”. The “throttling”(aka power management) at least gives you a choice.

Having not owned an android , I fail to the point you are trying to make . I’ve owned more products than yourself .... by a large margin.

Why one earth would you associate me with android ? I’ve owned every iPhone since 2007, and never an android smartphone.

Mate , just stop your labelling of people on this forum!!!

 

[LovingTeddy]

This price thing is a bit of a mystery to me. Let's take a typical consumer with an iPhone and a MacBook Air. Let's figure on keeping the iPhone for 3 years and the MacBook Air for 6 years

• Three years ago, the iPhone 6s plus 5.5 in screen with 16GB storage sold for $750. The iPhone Xr 6.1 in screen with 64 GB sells for $750.
• Six years ago, the base 13 in 2012 MBA sold for $1200. The 2018 MBA sells for $1200.

Has Apple's offerings really increased that much for the typical consumer? Please no snarky responses.....just honestly trying to understand this from the everyday users' perspective.

I have sent two kids to college with MacBook Airs at about the $1,200 price point. These machine have been great values. Our youngest will be going to college next year, and he wants a new MBA to replace his 7 year old machine that we bought for his middle school laptop program. I really don't see the new offering being a worse value than the old offering.......provided it is reliable......which we need to evaluate over the next few months (the keyboard thing makes me nervous).

Why are you comparing top of line product (iPhone 6S Plus) with decisive mid range product (iPhone XR)? These two things does not compare. If you want compare with iPhone 6S Plus, you compare with base model iPhone XS Max. Do you not see the huge price difference?

 

[Laki021]

Simply because top of the line today offers way more than 5 years ago. It's just that such super premium models did not exist some years ago.

I don't see a reason to cap prices of top of the line products if there are (even if it is a small number of them) people who are willing to pay more for something extra (no matter how insignificant that extra is). Let them spend their money.

The thing is, people have to realise that they don't have to buy the best and the most expensive model, something in the middle is still a super hight tech device. The most expensive models are there simply for people who are not price sensitive at all and thats all.

 

[Mainsail]

Why are you comparing top of line product (iPhone 6S Plus) with decisive mid range product (iPhone XR)? These two things does not compare. If you want compare with iPhone 6S Plus, you compare with base model iPhone XS Max. Do you not see the huge price difference?

Well, if I was a typical consumer, I just don't think I would be in the market for an XS. I would be looking at the XR. So, I am looking at the comparable options 3 years ago....from a typical consumer's perspective. If I wanted a big iPhone 3 years ago, a typical consumer would have bought the 6s plus.

The problem is that the XS is really not comparable to the prior offerings, since it has OLED display, multiple cameras, stainless steel construction, etc... I really don't see it as an everyday consumer product. The 6s plus was a consumer product for folks that wanted a bigger display.

It is kind of like you can't really compare the iPad Pro with the iPad Air 2 (which was the flag ship before the pro). It is more reasonable to compare the 2018 base iPad......which is more of an everyday consumer product.

However, I do see your point that the introduction of these various product tiers (consumer and "pro") confuses matters.

If you were buying the XR as a typical consumer, what would be a better comparison from 3 years ago? The reason this is important is that prior purchase prices set expectations with many consumers. Especially, those folks that don't endlessly scan tech sites and fixate on specs.

 

[I7guy]

Having not owned an android , I fail to the point you are trying to make . I’ve owned more products than yourself .... by a large margin.

Why one earth would you associate me with android ? I’ve owned every iPhone since 2007, and never an android smartphone.

Mate , just stop your labelling of people on this forum!!!

Please stop with the false narratives. There is a lot of labeling going on, but it’s not coming from here.

https://bgr.com/2018/01/01/galaxy-note-8-battery-drain-issue/

 

[sofila]

Throttling? As opposed to your android phone just “dying”. The “throttling”(aka power management) at least gives you a choice.

Now. You forgot to put "now" at the end.

 

[dgdosen]

Well, if I was a typical consumer, I just don't think I would be in the market for an XS. I would be looking at the XR. So, I am looking at the comparable options 3 years ago....from a typical consumer's perspective. If I wanted a big iPhone 3 years ago, a typical consumer would have bought the 6s plus.

The problem is that the XS is really not comparable to the prior offerings, since it has OLED display, multiple cameras, stainless steel construction, etc... I really don't see it as an everyday consumer product. The 6s plus was a consumer product for folks that wanted a bigger display.

It is kind of like you can't really compare the iPad Pro with the iPad Air 2 (which was the flag ship before the pro). It is more reasonable to compare the 2018 base iPad......which is more of an everyday consumer product.

However, I do see your point that the introduction of these various product tiers (consumer and "pro") confuses matters.

If you were buying the XR as a typical consumer, what would be a better comparison from 3 years ago? The reason this is important is that prior purchase prices set expectations with many consumers. Especially, those folks that don't endlessly scan tech sites and fixate on specs.

This answer seems like you're trying to defend Apple from a debater's point of view - "Resolved, Apple's pricing makes perfect sense" - It's just as easy to support the contrarian view:

- Apple is wrong to charge so much more for the high-end phone today than it did 3 years ago
- Apple is wrong to push the average selling prices for each phone $200 higher than it was a couple of years ago
- Apple is wrong to charge so much for a phone with an OLED screen than one can get one from Samsung or Google.
- Apple is wrong to push the average selling prices for their iPad Pro from a Year ago up by $200
- Apple is wrong to push up the repairs costs for a phone over 300% in five years.

I could go on.

The point is, there are two sides to an argument. With any two sides to a debate, one side usually resonates a bit better with people. We know which side of the argument resonated with Apple's executive/marketing team.

 

[citysnaps]

You haven't corrected anything. You've just been lying through your teeth about what you said.

Again, no. I've corrected your incorrect assertion of what I said. You seem to not want to accept that despite my trying hard to help you understand, and that's fine.

What that tells me, though, is you're much more interested in trying to find a gotcha moment rather than trying to really understand my point.

If you were really trying to understand my point, you would accept my clarification, and hopefully learn something new. But no, you're not interested in that, and just want to attack. If English isn't your first language, I apologize - I'll try harder next time.

 

[Mainsail]

This answer seems like you're trying to defend Apple from a debater's point of view - "Resolved, Apple's pricing makes perfect sense" - It's just as easy to support the contrarian view:

- Apple is wrong to charge so much more for the high-end phone today than it did 3 years ago
- Apple is wrong to push the average selling prices for each phone $200 higher than it was a couple of years ago
- Apple is wrong to charge so much for a phone with an OLED screen than one can get one from Samsung or Google.
- Apple is wrong to push the average selling prices for their iPad Pro from a Year ago up by $200
- Apple is wrong to push up the repairs costs for a phone over 300% in five years.

I could go on.

The point is, there are two sides to an argument. With any two sides to a debate, one side usually resonates a bit better with people. We know which side of the argument resonated with Apple's executive/marketing team.

Ok. It sounds like you won't be buying any Apple products in the near future. That's fine. But, I am asking a very simple question: "How does Apple's new pricing negatively impact a typical consumer?" I don't see this as a debaters resolution. It's just a comparison of the common products that typical Apple consumers buy.

For me, as a typical consumer, I don't really see how I am getting screwed if I buy a 2018 MBA for $1200 and an iPhone XR for $750. If I replaced a 6 year old MBA and a 3 year old big screen iPhone, the comparable products cost exactly the same in the past.

I think comparing the iPhone 6s plus with 16GB storage (three years ago) to the iPhone XS+ is ridiculous. One was a consumer product and the other is an ultra high end product. The iPhone XR is a much more comparable product.

I think the typical consumers are not the ones feeling butt hurt over these prices. I think the people really upset are those individuals that want to upgrade every year to the latest top end devices. The guy who used to pay $499 for an entry iPad three years ago is delighted to be paying $329 for the 2018 iPad. The guy that wanted the top end iPad three years ago paid $699 (wifi only), now he pays over $1500 for the top end iPad Pro. This has no impact on Joe Consumer. It really rattles the guy that wants the best.

 

[LovingTeddy]

Ok. It sounds like you won't be buying any Apple products in the near future. That's fine. But, I am asking a very simple question: "How does Apple's new pricing negatively impact a typical consumer?" I don't see this as a debaters resolution. It's just a comparison of the common products that typical Apple consumers buy.

For me, as a typical consumer, I don't really see how I am getting screwed if I buy a 2018 MBA for $1200 and an iPhone XR for $750. If I replaced a 6 year old MBA and a 3 year old big screen iPhone, the comparable products cost exactly the same in the past.

I think comparing the iPhone 6s plus with 16GB storage (three years ago) to the iPhone XS+ is ridiculous. One was a consumer product and the other is an ultra high end product. The iPhone XR is a much more comparable product.

I think the typical consumers are not the ones feeling butt hurt over these prices. I think the people really upset are those individuals that want to upgrade every year to the latest top end devices. The guy who used to pay $499 for an entry iPad three years ago is delighted to be paying $329 for the 2018 iPad. The guy that wanted the top end iPad three years ago paid $699 (wifi only), now he pays over $1500 for the top end iPad Pro. This has no impact on Joe Consumer. It really rattles the guy that wants the best.

iPhone XS is consumer devices. It is not like it is ultra high end only for rich people type of product. Thus, it should be treated like top of the line offering, which iPhone 6S Plus was.

I have no problem with Apple charging top dollars for a product, however, Apple need to convey why such expensive product makes sense and what is unique.

Look at iPhone XS, iPhone XS does not really stand out as a unique that worth the top dollars for. OLED, dual camera, wireless charging, edge to edge display etc. These aren’t unique and frankly competitors offers similar products for much less.

I think the problem going forward is the ability that Apple creat something unique, something that makes 1000+ phone worth the money. People simply aren’t find iPhone XS or XR are compelling enough for them to shell out.

One of the thing that typical consumers like my wife or my parents, they are not really tech savvy, they will look at what Android offers and what iPhone XR offers. For all they know, they see phones like OnePlus offers 6+128GB bass configuration with super high resolution display and XR’s 780P display and merely 64GB storage, they will think iPhone XR is not worth the money. My wife ended up with Android phone which is decent enough for less than 500 dollars. I ended up with 256GB iPhone 8 Plus (Refurbished).

 

[zhaoxin]

What are you arguing? iPhone price has gone up dramatically over past years, even in US. It is just not China.

iPhone 6S starts at 649 and iPhone XS Max starts 999. This is 54% price increase. RMB has been waken and it will be waken even more. With government lower bank reserve requirement, more RMB will pure into the market. I think Apple is correct for charging this price.

That not to say Apple is anywhere near price competitive in China nor Apple is offering things that must to have for most Chinese consumers. With local competitors getting better and offering more unique products, there is even less reason for people buying iPhone.

I just pointed out how ridiculous the price of iPhone now. It is ridiculous in China as well as in the U.S. However, though the price upping rate is the same, the people feels are different.

1. People in China earn less.
2. The smart phone market in China is more competitive. Despite of Samsung and Apple, all companies of the world top 8 smart phone are in China. There are many Android phones with Qualcomm 845 sold at the price as low as half of the price of iPhone Xr.

 

[Fthree]

I’d like to get a 12.9 iPad Pro but i think I’ll wait till they come down about $400

 

[john123]

Yeah, you are probably right, but it seems like Apple needs to have a portfolio of entry level devices to prime the pump for future folks to enter the ecosystem:

• new iPhone SE2: $499
• Base iPad: $329....which is one of the things they have done
• entry level Laptop: $999....might be able to drop the 12 rMB by $200 to $1099 be reducing storage from 256GB to 128GB
• new base iMac: $999

Yeah, I think there's a lot to be said for that, especially with the increasing share of earnings growth services takes. I think those proposals of yours are all reasonable places to be, too—except the iPhone. That price point would cannibalize sales of higher end models so badly because the differences just aren't that noticeable. And the flip side—selling a crappy cheap product—would undermine their brand equity.

They've kind of painted themselves into a corner on this one. My guess is that they probably have something like that in the works (SE3, whatever you want to call it) but are trying to get a better fix on domestic and global demand and elasticity.

Everyone also seems to be forgetting who hosed Apple the most, at least here in the US: the cell carriers. The subsidized model was wonderful for everyone—except the carriers.

 

[Fthree]

Yeah 84 billion is a lot but you have to remember that iphone purchasing is slowing IMO because apple is making too good of products that last for years (victim of their own success). Next 4th quarter will be 74 then 64 as less and less people will be willing to get rid of the overpriced phones they recently bought before the next few quarters. It’s dominos

 

[run1976]

This price thing is a bit of a mystery to me. Let's take a typical consumer with an iPhone and a MacBook Air. Let's figure on keeping the iPhone for 3 years and the MacBook Air for 6 years

• Three years ago, the iPhone 6s plus 5.5 in screen with 16GB storage sold for $750. The iPhone Xr 6.1 in screen with 64 GB sells for $750.
• Six years ago, the base 13 in 2012 MBA sold for $1200. The 2018 MBA sells for $1200.

Has Apple's offerings really increased that much for the typical consumer? Please no snarky responses.....just honestly trying to understand this from the everyday users' perspective.

I have sent two kids to college with MacBook Airs at about the $1,200 price point. These machine have been great values. Our youngest will be going to college next year, and he wants a new MBA to replace his 7 year old machine that we bought for his middle school laptop program. I really don't see the new offering being a worse value than the old offering.......provided it is reliable......which we need to evaluate over the next few months (the keyboard thing makes me nervous).

Many people who used to buy a plus sized phone want the max now which is way more expansive than the Xr. On the Macbook Air you are correct though Apple is trying to sell more services and more devices (Apple Watch, Homepod) to its users which means it gets more costly to be immersed in the Apple eco system. 15 yrs ago many families had one or two computing devices and a couple of simple cell phones. Fast forward to today and realize how much more tech we own. Hence, each device must rather get cheaper over time than to get more pricey. If not people will feel that they pay more for Apple devices. Which they do - in total not necessarily per device.

 

[michaelant]

The revenue decline was driven by China, while developed countries are actually expected to post higher revenue.

Meanwhile, many products remain supply constrained. Meaning that demand outstrips supply.

This shows that pricing isn’t really a key factor. By and large, consumers are still willing to buy Apple products at Apple prices.

Do people even read articles before commenting anymore?

I came back to this story to see if anyone got any upvotes for saying something perceptive, rather than just griping about higher prices. Nope.

 

[Bawstun]

“In only three months, Apple has lost $452 billion in market capitalization, including tens of billions on Thursday as the tech giant's stock sank further.

Apple shares have fallen by 39.1 percent since Oct. 3, when the stock hit a 52-week high of $233.47 a share. With its market cap down to about $674 billion, those losses are larger than individual value of 496 members of the S&P 500 — including Facebook and J.P. Morgan.“

——————-

This is only the beginning. Please, fire Tim Cook! Rise up and save Apple before it is too late.