It’s the other way around; services are higher margin—more than double that of hardware. For Q2FY19, Services had a gross margin of 63.8%, while Products was only 31.2%. Overall (combined) gm was 37.6%.
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Apple Reimbursed Samsung $683 Million After Missing OLED Display Targets
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Wouldn't it have made economic sense to drop the price and sell more units than pay Samsung?
But maybe they cannot drop the price low enough to off-set this?
How many iPhones are sold annually?
But maybe they cannot drop the price low enough to off-set this?
How many iPhones are sold annually?
There are a lot of posts with reasons for Apple's poor sales. Some people claiming that the iPhone is too expensive, while others claiming that it isn't a pricing issue, but that there isn't a need to upgrade to a new iPhone when the consumer's current iPhone does everything they need to do.
I bet the truth is probably somewhere in the middle.
Maybe iPhone sales would increase if the prices were lower, and people that wouldn't normally upgrade due to being happy with their current iPhone, might consider it due to the lower prices.
Also...
Maybe iPhone sales would increase if Apple would introduce some new innovative features that are actually useful, and people that wouldn't normally upgrade due to the price, might do so to have these new useful features.
I think Apple was once really good at finding a balance of the two things above, but with dropping the SE and increasing the price of their flagship model iPhone, while leaving the utility of it mostly unchanged over the past 3-4 years, people are losing reasons and incentives to upgrade.
I bet the truth is probably somewhere in the middle.
Maybe iPhone sales would increase if the prices were lower, and people that wouldn't normally upgrade due to being happy with their current iPhone, might consider it due to the lower prices.
Also...
Maybe iPhone sales would increase if Apple would introduce some new innovative features that are actually useful, and people that wouldn't normally upgrade due to the price, might do so to have these new useful features.
I think Apple was once really good at finding a balance of the two things above, but with dropping the SE and increasing the price of their flagship model iPhone, while leaving the utility of it mostly unchanged over the past 3-4 years, people are losing reasons and incentives to upgrade.
I get it how Apple wants to look forward and pushed a new design language with the iPhone 6-8, and iPhone X series.
But sometimes, when the form factor is right, it's just right. The 4s and 5 were just that. All it lacked was the all-screen feature. With the iPad Pros square edges, one can only hope, there's a return to that old form factor. At the very least an option.
When they were still reporting units, about 215 million annually. Probably somewhat fewer than 200 million now.
So overall, the penalty only amounts to a few dollars per iPhone sold.
That's close to the amount Samsung was ordered to pay Apple for the rounded-corner patent. As they say, what goes around comes around.
Wow, so many apple haters on these forums. No idea how they get their pleasure from continually wishing Apple the worst.
I would be very surprised if they will drop prices of the new 2019 iPhones!
More realistically best case scenario will be same prices of 2018 models with improved features.
I hope I'm wrong, by the way, as this time I will say goodbye to my 7Plus and upgrade to the new Max no matter what the price is.
More realistically best case scenario will be same prices of 2018 models with improved features.
I hope I'm wrong, by the way, as this time I will say goodbye to my 7Plus and upgrade to the new Max no matter what the price is.
This is actually more shocking. Wondering how Apple’s quarter compares, looking at the issues the companies could have in common.
This thread is mostly ‘lower prices’ not a lot of apple hating imo. Either way, why get your panties in a bunch that some people find fault with Apple?
On another note, I looked up Truro, and dang that looks like a cool little town. I live in Atlanta and theres plenty of very nice spots, but the historic buildings in those little UK towns just blow my mind. Wish I were there and out of this oppressive july heat
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They WON some USD
This is remnant of the classic prank.... https://www.ebaumsworld.com/videos/...on-ktvu-tvs-asiana-fake-pilot-names/83423778/
If it is presumed that FaceID is portion of the high cost, imagine trying to put that in a physically smaller device, there would be little to no room for the clock and battery icons. I believe this is the reason why Apple is considering under display TouchID.
Unless FaceID can shrink further or the 4” device grows a bit this is going to be a challenge.
The reason for the drop in sales is mostly due to the lengthening purchase cycle. Starting with the 6s, iPhones are now fast enough (and good enough); there’s no real need to upgrade, for many customers. The two year cycle is long dead, and is trending towards three to four years.
Those who attribute lower unit sales to higher prices misunderstand the cause and effect; it’s the less frequent upgrading that led to decreased unit sales. This caused Apple to introduce the premium flagship tier. Given that people are holding on to their phones longer, the only way for Apple to maintain profitability was to make a better/higher featured (i.e. more expensive) phone.
re: the SE, between the low price and the compressed profit margin, it never contributed much to profits. Some people want an SE-sized phone, even if it were more expensive, but not enough. The rumored 2020 5.4” iPhone 11S will be about the same size as the 4.7” iPhones 6/7/8.
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Tariffs are hurting many sectors, I held off making purchases until it is lifted. Companies are gonna be hurting till there is some relief.
Depending on usage, one would only have to change the battery after 2-3 years and the cost depending on device and where it is done seems like a bargain compared to purchasing a new device unless there is some compelling tech or feature to warrant an upgrade.
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Who is Samsung going to reimburse, their make the OLED displayed used in their own products and sells to others. Same company different divisions, no contract required.
I am not sure if you are confusing what the article is reporting.
iPhone XIR should be $699, iPhone XI should be $899, and iPhone XI Max should be $999. That’s still a lot, but if you’re missing targets you have to lower prices.
Not in this situation, IMO. There are a lot of older iPhones out there that will need to be upgraded this year. Those that must upgrade this year can't wait and will have to buy whatever is available. Apple knows it has a captive audience and they simply have to wait it out... this is the year they'll see the sales figures start to rise again.
Some people might say that this is the effect:
I think that drop in sales can be equated to lengthening purchase cycles, but not the effect of it. It is the results of the things that are mention many times in this post.
This is one:
I agree!
This is in part in what my post was pointing out. But, I don't think this is the only reason, but a bunch of reasons, and this is one of them.
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I would also add to your statement that it isn't just the iPhones are fast enough, but that there has not been any new features that provide useful utility to the new iPhones.
Getting a faster iPhone was not the only reason for one to upgrade in the past.
This is a horrible idea, as an app developer I would never support such a move and most app developers will agree with me, it is a complete pain in the ass to try and support such a small screen size these days. id like to see the 4s and 5s screen sizes being completely dropped by Apple.
Must hurt a lot of people on here. Like those who declare that they will never ever, ever buy anything Samsung. For a $683,000,000 payment, that means you could say that for each unit sold, as well as paying for their phone (with of course Samsung components), they were also giving a gift of ~$10 cash to Samsung.
The court case was a minor skirmish. All it succeeded in doing is showing the world Samsung steals IP.
Apple obliterated Samsung in the smartphone war. I think Apple is pretty happy about their position in the market, being #1 and all, and doesn’t worry about the occasional mosquito buzzing around.