Apple Reportedly Asks Suppliers to Make Fewer Components for AirPods, MacBooks, and Apple Watch Due to Weak Demand

[loby]

Apple hasn’t been particularly innovative recently, but I don’t have too much of a problem with that as I value performance, reliability and usefulness over clever new features.

Apple’s main problem is their pricing. They have always been “premium” but in recent years their pricing has increased disproportionately, and most products are now starting to seem just plain expensive. In a global recession, that’s not a good look. They need better entry-level products especially during tough times, offering better value for money.

The only way Apple can do that business wise is start to make “cheap” components that break in a few years that make people upgrade like PCs. Apple should not go down that road. People think “Apple, just lower your prices.” Not a reality.

People want “cheap price, good quality.” That is always the demand of consumers. Apple is not a charity and will give good quality products (generally speaking) at their corporate set margins. It doesn't matter if their margins are high in the consumer’s eyes. That is their business operations. If they reduce prices, the will always cut “something” and it will NOT be their profits and always consumers will pay for it one way or another.

The world is going into global recession and Apple is part of the world. Don’t “cheapen” the products and quality to make your margins. Just take the hit like everyone else and continue at the top as you will (maybe reduce pricing a little to save face). It is just what it is and everyone will take a hit in profits, so you will still be on top anyway. Just ride it out and don’t give offerings that force upgrades.

 

[t0rqx]

This shouldn't be surprising. Folks are concerned about their economic future in '23, inflation is eating what they have, and Apple's devices are very durable over many years, negating the need to constantly upgrade.

Now, if Apple could learn from the LED light bulb manufacturers to implement planned obsolescence...

You must be a new Apple customer. Planned obsolesce has been implemented for years in iOS and the one that exposed that was batterygate. Recent one is called Stagemanager. Not to mention leaving out minor improvements only 1 year old iPhones can run even if a 2 year old iPhone run the same hardware.

They recently even released a new firmware for Airpods Pro Max worsen the ANC and planning to bring the old original ANC level to the new Airpods Pro Max 2 and claiming 200% better ANC levels during presentation.

 

[dampfnudel]

I guess we’re getting new colors by April? Maybe AirPods Pro in space black and a purple Apple Watch because I’m sure that will drum up sales?

 

[derekamoss]

Right. That satellite feature is NOT innovating. Nor is the crash detection. Nor the A16 being the fastest smartphone CPU/GPU in the world. Nor the completely revamped and improved camera system. Nor the always on Lock Screen, or the better battery life. Nor the fact that the phone retains 50%+ of its value after two years

Some people are just being taken advantage of. The nerve of this company

It would be innovating if they were the first to actually implement it...

 

[TimHalfCooked]

Now THIS is how you make money.

 

[I7guy]

They should either innovate or reduce prices to increase sales.

It is difficult to convince people to buy an iPhone 14 Pro for 1329 euros to just have the « dynamic island ». And now they rumor that the evolution for the iPhone 15 Pro is USB C.

If Apple doesn’t find new ways to innovate, they will have a painful years ahead

But I would buy an iphone 14 for better camera, better screen, faster processor, better battery life, better GPS, etc...and I did get a PM.

 

[I7guy]

It would be innovating if they were the first to actually implement it...

That's invention. Bringing satellite emergency to the masses is the very definition of innovation.

 

[svish]

Consumers may be holding on to their devices longer.

 

[Thrutheroofnunderground]

Right. That satellite feature is NOT innovating. Nor is the crash detection. Nor the A16 being the fastest smartphone CPU/GPU in the world. Nor the completely revamped and improved camera system. Nor the always on Lock Screen, or the better battery life. Nor the fact that the phone retains 50%+ of its value after two years

Some people are just being taken advantage of. The nerve of this company

The always on Lock Screen is like 6 years old in the Android, and Apple is years behind in useable zoom (not the crappy 30x stuff), but 5x-10x. The crash detection has been around a while now and nothing really was “revamped and improved” on the 14 compared to the 13. I have a 12 Pro Max and they may get me to upgrade to the 15 if they actually introduce better zoom. Otherwise I’ll just be putting a new battery in it - which apple increased the cost of by 20%

 

[Steve121178]

I noticed AirPods seemed a lot easier to find in stock this holiday season. That either means Apple had more supply on hand, or demand has decreased on consumer electronics. Or maybe it's just market saturation of AirPods.

Apple seems to think people will be keen to upgrade every time they release an update. The fact is most people will keep their AirPods/hardware until they no longer work or they lose them. Consumer electronics are not disposable after 1-2 years use, no matter how hard Apple's marketing tries to convince the masses otherwise.

Just like smartphones, the wearable & audio market is completed saturated so it's very hard to try to convince people to buy a new product that essentially does very little new to something they already own.

 

[Xand&Roby]

Apple seems to think people will be keen to upgrade every time they release an update. The fact is most people will keep their AirPods/hardware until they no longer work or they lose them. Consumer electronics are not disposable after 1-2 years use, no matter how hard Apple's marketing tries to convince the masses otherwise.

Just like smartphones, the wearable & audio market is completed saturated so it's very hard to try to convince people to buy a new product that essentially does very little new to something they already own.

Apple does not only do marketing, it releases updates specifically to induce the purchase of new hardware, in fact the software already full of bugs is deliberately oriented to slow down the latest devices presented on the market, it is no coincidence that heavy updates of the new versions of the operating system are made in the spring, and punctually slow down, data in hand, the devices, to induce the purchase of hardware that will be presented shortly.
That's why Apple is losing historic customers, and it doesn't care, because it thinks can win and tie new customers forever, but it doesn't work that way, consumption dynamics are much more variable and a drop in salaries is enough to zero sales of Apple products, in the world, not in the fateful American kingdom where Apple gives iPhones, according to American customers.

 

[philcourage]

They could try stop jacking up prices every chance they get. Then they might see some product moving.

 

[cygy2k]

People that think this is because they don't have 8K or 4:4:4 support or Mac Pros with M4s and such are so ill informed. Everything you mention is in the <1% of Apple's target audience and revenue stream. They know their audience.

Just because you want a Mini iPhone, a 12" or 17" laptop, etc doesn't mean their primary revenue generating customers do.

If you watch the industry, partners, etc there is a reason Apple typically has a huge percentage of the revenue pie industry wide, they know what the masses want - not necessarily what YOU want.

This is about market saturation and economy, simple as that. Their many years of continuing record revenue proves that people have been content with Apple's pace and product offering for a long time and that didn't suddenly just hit a wall. It hit the nature of the market just like everybody else in similar positions.

They'll be just fine even though you can't get an RTX 4090 TI in your next subportable notebook.

 

[_Spinn_]

Ouch. Looks like inflation has finally eaten away enough of people’s disposable income. I’m hoping the next few years aren’t going to be as bad as many are predicting.

 

[GraXXoR]

What’s Apple going to do with all the iPhone 14 Plus models?

Their top execs will grind them up and snort them.