That doesn't solve Apple's problem though. It wont help them get those abnormally huge profits they strive for. Lowering the prices on their latest phones is the better strategy but I don't think Apple will do it.
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Apple Reportedly Cuts iPhone XS and iPhone XR Production Orders Amid Lower-Than-Expected Demand
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Depends how badly they want to sell 60-100 million units each release. They will if it means they get more sales.
Many of us here have predicted this drop off and suggested the obvious. However Apple have gone in the opposite direction which leads me to believe they know something we don’t.
Apple always knows something we don't. Analysts do their best to dissect apples business and publish all kinds of metrics, but in the end they are guesses. And last year the analysts were a universe away from the truth with the reports of failure of the iphone X.
It’s jusr standard accounting 101 stuff. Which...yeah...is not what most forum posters know, and it sure as hell ain’t sexy.
It doesn’t matter how many units you sell. At the top level there are 3 numbers that matter above all for optics:
1) EPS growth
2) Gross profit margins, year over year
3) Revenue, year over year
Selling fewer devices at the same gross profit but at higher ASP is a perfectly valid business strategy. I think it’s really really important to mention too that if this is what is going on (which is very very likely) that one could NOT logically infer anything about the popularity of the iPhone XR or XS just from those numbers. Why? Because you have to control for a number of confounding factors, including exogenous ones.
It is a very, very safe bet that Apple revenue will be up year over year for the next quarter and gross profit margins are within 1% of last year.
Something has definitely gone wrong, otherwise they wouldn’t have tried to improved marketing. They have also changed the marketing tag lines of their X series. Previously it used to be a one liner. Now it’s very detailed, listing out he benefits of the product. They are also showing prices on their home page, never done before.
If apple reduces the prices of next years phones then they know they made a mistake and want more unit sales if they don’t then you know they are doing just fine and are all about the profit they are making off these high sales.
Shocking! Apple’s iPhone sales might actually be stronger than expected.
"We’ve been down this road before. Over the past few years, there have been a number instances where rumors regarding sluggish iPhone sales have turned out to be completely off the mark, if not completely baseless. In light of that, a new report from Bloomberg relays that Apple’s top two manufacturing partners — Foxconn and TMSC — both reported strong revenues for November. Specifically, both companies saw revenue surge by about 5.6% last month."
