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Apple Reimbursed Samsung $683 Million After Missing OLED Display Targets
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They would have sold fewer Xs models if xr had an OLED display at the same price point it is now.
Well nothing to see other than the fact Apple bought 10's of million fewer screens (therefore selling 10's of million fewer iPhones than their worst case analysis). Pretty interesting thing to see actually.
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Well then that should tell you (and Timmy) how little value the flagship features in the Xs have for customers. And as this payment indicates, not a lot of people thought the OLED justified the Xs price tag either, so maybe putting it in the Xr wouldn't have hurt the Xs any more while helping sell more Xr's.
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This is probably a rare case of where the product is less than the sum of it's parts - By the sounds of things, the pricier components and R&D effort for a lot of the new tech in the phone sounds like it probably goes a long way towards explaining the price increase (though undoubtedly there's also well padded margins in there too). The issue arises because for all that, the phone probably isn't honestly worth what they're charging for it anyway. Many people obviously are buying (though this is rare incidence of an iPhone undershooting sales estimates significantly) but you're not really getting value from these models. Particularly in the face of much more competent older models in the 7 and 8, and of course the XR. Not quite a luxury, but the X/S are definitely indulgence purchases.
Yeah, which also means that these things must be over-priced, otherwise there wouldn't be that much profit.
Asian Android manufacturers also build and sell a lot of smartphones for 40 USD and less, but those phones are not sold in first world countries -- they are exclusively sold in developing and third world countries. Which is a huge market - one where people cannot afford PCs, Macs or elitist phones, but where people still need a device that can connect them to the Internet (which usually comes through satellite links to the local ISPs). Apple plays absolutely no role in that market.
683 billion $ is nearly all of Apple, $683 million is a lot for any company no matter the size, it’s just a lot of money. It just very much depends on how this wealth was transferred...
Don’t worry, next year the XR will get an OLED screen, so the rumours say, let’s just hope they don’t increase the price to along with it!
Still with the XR it is flagship money for its lower end device.
[doublepost=1562498149][/doublepost]This is obviously a big indication of just how far off it’s sales targets Apple has been!
But it’s also a clear indication of what it has a war with third party repairs, because Apple ONLY wants to be able to repair your iPhone, when in actual fact if ONLY Apple repair it, then they will most likely push for you to upgrade or pay a substantial amount for a replacement phone, and they won’t actually repair it, they’ll just take your old phone and have their contractor repair it, then refurb it and it’ll be sold at a high price to the next person who wants their own personal iPhone repaired.
It’s all in the name of maximising profits. But I’m not sure how much that profit is worth if they are legally bound to pay Samsung over 600 million dollars?
Hmm it does seem Apple are in a bit of a mess at the moment.
The biggest issues regarding high iPhone prices, and therefore lack of sales, seem to be a) FaceID generally being a fairly expensive component, especially when compared with TouchID b) Samsung's high OLED asking price and then professionally calibrating each OLED screen in the factory which a lot of other phone manufacturers seem to skimp on c) Apple refusing to budge significantly on profit margins.
The OLED models have the highest profit margins.
For example, retail price of the 256 GB iPhone XS Max is $1249, but the cost to make it is about $453. That makes the profit margin 176% at retail.
http://www.techinsights.com/about-techinsights/overview/blog/apple-iphone-xs-teardown/
In contrast, the iPhone XR 64 GB costs $370 to build, with a sale price of $749, meaning the profit margin is 102% at retail.
https://technology.ihs.com/596781/i...-370-in-materials-ihs-markit-teardown-reveals
Sure, real profit margins are lower, but it does illustrate just how out-of-whack the OLED model pricing is, even compared to Apple's own LCD models.
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Yes. $2000 AUD for an underwhelming iPhone XS Max (256GB). Beyond absurd is too polite to describe our frustration.
There’s a reason those phones are $40 and not sold on the first world - they provide for a truly awful experience. And software upgrade path. There’s also no margins in them.
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That’s market capitalisation, very different from money in the bank...
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It’s not a big deal - that payment would likely be a repayment of discounts Apple got upfront based on sales forecasts that they failed to meet. Pretty standard business practices - it’s a lot of money but only a small percentage of overall revenue for the quarter...
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You’re quoting estimated cost of materials, not full costs of manufacturing, administration, R&D and so on, that takes the margins way down compared to your figures.
It is only natural for human to feel great when witnessing someone’s failure or demise. We can’t blame them too much on this one.
I would have agreed with you, if only that research & development costs haven't been factored in, which I'd imagine again would be quite a lot to get FaceID to where it is now.
The XR and XS Max both have Face ID, so that wouldn’t account for the difference.
On top of what you said about not including other costs, these are estimates and if we’re going to play this game about decomposing apple’s financials let’s be exact. /s
When people say 'Trillion dollar company' what they are talking about is the value of all their shares being (currently $917BN), they don't have anywhere near that much in cash assets. They had in Q1 2019 $245BN in cash, but against that a debt of around $90BN - further, much of their cash is offshore and would incur tax to actually repatriate it for use.
"Haters everywhere". Ever see a Microsoft or Windows news/rumor bit on here? Suddenly all the Apple lovers become MS haters. How do THEY get pleasure from continually wishing MS the worst?
Very ignorant move if you ask me...why in the world would you pay that amount of a fine? Why not just order the screens and sell to repair shops if nothing else. Seems silly to just let the money 'burn' for no good reason.
