When apple was headed for 1T it was the same story; fire Tim Cook. Do you really deep down think the board is going to do that?
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Apple Lowers Revenue Guidance for Q1 2019 Citing 'Fewer iPhone Upgrades' Than Anticipated
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We will just have to disagree. The iPhone XR is Apple's everyday consumer offering. The XS is not for the average consumer. It is the high end phone in Apple's line-up. Prior to the X/XS, there was only one consumer offering in the iPhone line-up with two different sizes. This is precisely the reason Apple created the iPhone 8 and the iPhone XR after introducing the X/XS models.
After recently upgrading from a 6s+, I can assure you that the average consumer coming form the iPhone 6s+ 16GB ($750 new three years ago) will be delighted when upgrading to the iPhone XR 64GB ($750): Face ID, bigger screen, smaller footprint, better speakers, longer battery life, portrait mode camera, A12 Bionic Chip, Water Resistant, Additional storage (16GB was barely usable)....the list goes on. It is a much better phone for the same price.
Somehow, people seem to think they are entitled to a new flag ship phones that costs the same as the old flagship phone. This is ridiculous. By that logic, the iPhone XS+ should sell for $750 rather than $1100. Apple's margins are typically 35%, so they would be essentially selling the XS+ at cost. This is not how for profit companies operate.
This years iPhone lineup has been the most stupid in Apple history. Totally confusing naming schemes + bump in prices + lack of innovative new features. This is like Nintendo releasing Nintendo Wii U and not understanding how that name made people completely confused to what the hell the Wii U was when they already had a Wii. I honestly always confuse and forget which is the top end, Xs or Xr. And why didn't they just stick to the "Plus" being bigger screen? Now they have "Plus" and "Max"....
Currently lineup, only iPhone X not sold on their web:
iPhone Xs Max
iPhone Xs
iPhone Xr
iPhone X (many people have this already and don't see a need to upgrade)
iPhone 8 Plus
iPhone 8
iPhone 7 Plus
iPhone 7
The question is, what are they gonna do next year? What will they call the next one? The iPhone lineup was such a simple continuation until iPhone X messed everything up, and last years release just made it even worse.
Currently lineup, only iPhone X not sold on their web:
iPhone Xs Max
iPhone Xs
iPhone Xr
iPhone X (many people have this already and don't see a need to upgrade)
iPhone 8 Plus
iPhone 8
iPhone 7 Plus
iPhone 7
The question is, what are they gonna do next year? What will they call the next one? The iPhone lineup was such a simple continuation until iPhone X messed everything up, and last years release just made it even worse.
Apple maintains close to the same profit margin on each iPhone model (including the development costs on the latest model). Bringing the price down will mean that the specs of the flagship iPhone will come down.
Smartphones are already one of the most equitably priced consumer products available - - the price difference between the cheapest and the most expensive is only $1449. Compare that to cars.
Imagine if there actually was a $15,000 smartphone with specs 10x as good as the next best one. People would still be lined up to buy it.
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If we take “iPhone X” as the base name, then the next iPhone would logically be called “iPhone X2. And the one after that the iPhone X2s?
Just a thought.
The "iPhone Ten Two" and "iPhone Ten Two S" and presumably the "iPhone Ten S Max Two"
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It is, way above that. Tech Insights had the iPhone X at around 64%.
https://www.reuters.com/article/us-...gin-than-iphone-8-analysis-idUSKBN1D62RZ?il=0
Your right. You're guessing, and I am guessing too because Apple does not publish margin per individual device. Some folks will try to estimate it by looking at the bill of materials, but I suspect that doesn't give a complete picture, since there are so many other costs that go into a product besides the BOM. The production, supply chain, overhead and retailing/advertising costs are all proprietary. As is the information about what Apple actually pays for the components of the devices.
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Companies are open to adjusting profit margins depending on demand and what the market will bear. There is no industry rule that a company like Apple need to make a 70% profit on every product they sell. They’ve chosen that margin and to be fair it’s irrelevant to consumers how much profit they wish to make. They are still selling on a massive scale but have experienced a drop and price has to be part of the reasoning for that. They could adjust their margins to attract more consumers or they can continue.
They are very lucky their products are popular as most companies don’t have that luxury. I think the expectation has built up based on recent years where people expect Apple to break records every year. However this year is different as iPhones have peaked in terms of what they can do compared to their predecessors. We are simply buying based on aesthetics and slight performance enhancements with larger gaps in price.
Enough to be confident that the next iPhone won’t be the iPhone XI.
How much profit determines selling price. You don't think that is relevant to purchasers?
Comparing the parts cost to the profit margin - - really?
I would have thought that simple business concept had been explained enough times on these forums already.
The cost of simple parts manufacturing does not include the significant cost of product development and service.
- The industry leading Apple A-series processors are not a simple off the shelf purchase - Apple has spent billions developing them - - same goes for the AR sensor array.
- The industry leading customer service is not free - - any time I have had an issue with an Apple product, it has been fixed or replaced for free, via a quick and easy local visit to the Apple Store.
- iPhones are supported with new iOS systems and security updates for six full years - - imagine the cost of maintaining the system software development team needed to let us use our 2013 iPhone 5S here in 2019.
That would make Apple management look foolish. After stressing it was call the "TEN" not the "EX"
Think of it like algebra.
iPhone 3G. iPhone 3GS. iPhone 4. Etc.
Now replace iPhone with iPhone X.
You now get iPhone X 3GS. iPhone X 4. And so on.
The X label was meant to symbolise the end of 10 years of the first generation of iPhones (you can think of the iPhone to iPhone 8 as Apple iterating on the same design throughout) and the start of the next ten years of a new design paradigm (one without bezels and sporting Face ID).
In this regard, it represents an integral part of the iPhone’s branding and identity. You are not getting rid of the “Ten” part of the name so easily.
Thanks for the morning entertainment, yet again
No prob. It’s evening here, just had my dinner, and chilling after work.
Have a good day, and to a great weekend.
I bought a Samsung phone. The Chinese got the Huawei phone. Hopefully Apple has gotten the message through these numbers.
Apple was engaging in Throttlegate for over a year until the Geekbench fiasco blew and you even claimed at that time that Apple has no need to respond to it but they did, with an apology to boot. Show me a single public manufacturer on Android who had to face court cases and an official investigation on secret throttling, not isolated links from support forums which I can also post for the XS Max randomly shutting down.
That is exactly what he said. The Verge wrote an entire article on just that statement. Give it a read
https://www.theverge.com/2019/1/2/18165866/apple-iphone-sales-cheap-battery-replacement
"The easier it is to replace a battery, the less willing people are to buy a new iPhone"
"In 2018, many of the less pleasant quality of life issues for older iPhone models disappeared, and that may have meant people’s main reasons for upgrading to a new phone also vanished."
Planned Obsolescence was finally stopped after years of customer deceit. I am expecting Apple to reinitiate it in iOS 13 as smoother phones as Apple themselves admit above means lesser upgrades. iOS 13 will be a miss.
Those are estimates by iFixit and don't take any overheads into account. For all you know, they could have reduced their overheads and increased their profit margins through higher prices.
Radical thought - what if Apple doing what the people here said they had to actually caused profits to drop even more precipitously?
That what Apple did has already resulted in the best case scenario given the unique challenges it currently faces?
That’s down to Apple how much profit they wish to make but as a consumer I know how much I’m willing to pay based on the retail price. If the desired profit pushes the selling price up to uncomfortable levels, then we are free to walk away.