Apple Reportedly Reassigned Some Marketing Staff to Work on Bolstering Sales of iPhone XS and iPhone XR

[LovingTeddy]

Apple told us the iPhone X was the best selling model in the lineup since release, so it was the best selling.

All investors know unit sales have been flattish for 3 years. The 2015 year was an outlier bc of large screen iPhones. The rising ASP has frankly been incredible and shows the strength of the iPhone, selling MORE units y/y at far higher prices. Pricing power.

They are frankly right that unit sales are no longer relevant and investors should be focused on the business rather than an arbitrary unit sales metric that tends to overshadow incredible results.

iPhone sales are not growing... And it has been flat for few years now. It is question now that how far can Apple push price too.

If you think an iPhone XS Max selling for 1500CAD is something affordable, then frankly, you are out of reach. Apple cannot keep increase iPhone price forever, it will soon be unattainable.

Even if you sign up 2 year contract, the down payment is over 500 Canadian Dollars... Plus over 100 dollar per month for plan. This is getting very unaffordable for most people.

Quite frankly, if anything, Apple decide to not disclose sales number shows that they have no confidence on their new products.

 

[groadyho]

After playing with nephew's amd niece's XR it's a decent phone at a high price. Also a downgrade from my s9+. Imvho most don't care about phones as much anymore, they all do the same thing basically at the same speed. For most the leap from hundreds to thousands in cost is big.

 

[Rogifan]

Apparently an Apple employee reached out to Apple Insider claiming there is no fire drill and this is just normal course of business. Hmm...I don’t think putting a $449 price offer on the front page of their website is normal course of business.

 

[kristoffer4]

Maybe the large size of the iphone XR has something to do with it? I wanted a new phone, but didn't want to pay 999 dollars for it and the XR is too big for me. Hence I got an iphone X from last year...
My girlfriend had difficulties understanding why the cheaper model is the bigger phone and I agree.

 

[Kabeyun]

I don’t see how that clip is relevant. There are others in that interview that are but that one doesn’t seem to be. In fact, the truth may be opposite, if all those are correct who are bemoaning the effect of high prices. That is, it’s the sales & marketing people (via pricing) who are hurting growth of an otherwise good product. Regardless of who’s leading the company, product development people still have a primary voice at Apple.

 

[ugahairydawgs]

Apparently an Apple employee reached out to Apple Insider claiming there is no fire drill and this is just normal course of business. Hmm...I don’t think putting a $449 price offer on the front page of their website is normal course of business.

Of course they are going to say that. Gurman probably doesn't have the full picture and there is probably some semblances of normal product cycle stuff going on here, but I would imagine the basis of the article (the in-the-building reaction to lower than expected sales of the XR and XS) is spot on.

 

[Rogifan]

I’m still on my X because it’s not worth paying another $1300+ for XS.

If they would keep the prices around $800 I’d upgrade every year like I have been doing.

Is there a reason people need to upgrade their phones every year? I think it’s absolutely ridiculous that new phones get trashed because they’re not leaps and bounds better than the phone released a year earlier. Why does anyone think the XS is for X owners? Sure some people will upgrade every year because they can but that’s the exception not the norm.

 

[azentropy]

IMO Apple really screwed up their lineup this year. Everything from the high pricing, the confusing naming, the lack of updated smaller options and even the delayed release of the XR. Marketing isn’t going to fix any of those.

 

[jonnyb098]

The iPhone XR is way over priced for what it is, the XS and XS Max are also high prices to pay, I bet most people who brought the iPhone X are still using it instead of upgrading (those that brought out right and not used the upgrade programme). I still have my iPhone X, there is no way I will buy a £1000 iPhone every year, every couple of years probably but not every year.

Apple seem to be making so many missteps just lately, the XR is a misstep, the higher price of the new iPad Pro's is another misstep. I've been an Apple fan for years and I'm starting to see cracks, I really hope they get their act together and soon!

Im a little confused on how the XR is overpriced for what it is. Its literally 90 percent of the XS Max for $350 less. It also has the best battery life out of any iPhone including the Max. That $350 gets you a zoom lens and a higher res OLED screen. Most wont see that as worth $350 since Apple has the best LCDs in the business and no one cared for 10 years except nerds (which apple doesn't cater to any more or else they'd never be the most valuable company on the planet). Now ,lets use the 8 plus as the example since the plus size phones are so popular now. The screen is larger than the 8 Plus, gets better battery than the 8 plus, faster than the 8 plus, still does portrait mode like the 8 plus and does smart HDR portrait selfies which the 8 Plus CANNOT do. The only 2 advantages the 8 plus has is that it has a zoom lens and a little higher res screen. Other than that the XR is an improvement in every single way for only $50 more today.

So....again....how exactly is the XR overpriced for what it is??

 

[Rogifan]

Of course they are going to say that. Gurman probably doesn't have the full picture and there is probably some semblances of normal product cycle stuff going on here, but I would imagine the basis of the article (the in-the-building reaction to lower than expected sales of the XR and XS) is spot on.

Right, there’s probably nuance that he doesn’t have. But I doubt Apple would be putting $449 XR on the front page of apple.com if XR sales were as good or better than expected.

 

[Saturnine]

I think smartphone sales are generally weak across all manufacturers, which leads me to believe it really boils down to an issue of market saturation, pure and simple. There is no need for constant phone upgrades.

Pretty much this! Along with the fact that the upgrades that are coming out are no longer as compelling as they once were. As technology matures, the small improvements between models become less and less important - particularly when they’re balanced against the increasing cost of iPhones in particular.

Improved VR experience? Faster? Slightly better camera? There’s not enough there for me to warrant the cost of upgrading.

Just a few years ago - front facing camera (iPhone 4), 4G (iPhone 5), Touch ID (iPhone 5S) - those were killer features that were worth the cost of upgrading.

 

[BigBoy2018]

Absolutely not it. I upgrade every year despite it. This year the price is just out of hand.

EVERY year?!? But why? Is there a hole in your heart you’re trying to fill through conspicuous consumption?

 

[dlopan]

This is easy. Lower the prices. No one in Asia will buy these phones. Also just for me, I hate all glass phones. It's stupid.
Don't get going on the computers. Unrepairable junk.

 

[groadyho]

Right, there’s probably nuance that he doesn’t have. But I doubt Apple would be putting $449 XR on the front page of apple.com if XR sales were as good or better than expected.

With a trade in. If that was a cash price i'd buy 2 right now. But i feel it is a downgrade to trade in my S9+ and pay $449.

 

[Romeo_Nightfall]

Apple Watch is more innovative than AirPods, so I find that to be a strange example.

Apple Watch is a work in progress with no or wrong health vision

AirPods are a complete product with clear vision

 

[Saturnine]

Im a little confused on how the XR is overpriced for what it is. Its literally 90 percent of the XS Max for $350 less. It also has the best battery life out of any iPhone including the Max. The screen is larger than the 8 Plus, gets better battery than the 8 plus, faster than the 8 plus, still does portrait mode like the 8 plus and does smart HDR portrait selfies which the 8 Plus CANNOT do. The only 2 advantages the 8 plus has is that it has a zoom lens and a little higher res screen. Other than that the XR is an improvement in every single way for only $50 more today.

So....again....how exactly is the XR overpriced for what it is??

It’s probably not - but it’s also not a phone which I imagine many X owners are going to move to.

I remember that Apple were *reportedly* surprised by the high demand for the X last year, as they’d expected more of a split between the 8 and the X. If that’s true, it would appear that people prefer to own the flagship models even when there’s a very capable and much cheaper second-tier model such as the XR. The problem is that, for some, the XS is just prohibitively expensive - particularly in the non-US market were import taxes and sales taxes such as VAT (20%) are added.

 

[Romeo_Nightfall]

Pretty arrogant statement considering the article specifically mentions last years fiasco with the X, predicting doom and gloom. This news "story" could pan out to be nothing.
[doublepost=1543939418][/doublepost]
How do you know a "vast" number of loyal customers were alienated. How is a loyal customer defined? How do you know potential new customers are alienated? How do you know including charging pads and airpods would result in skyrocketing sales?

Just asking because this is all conjecture and what-ifs.

We discuss here, and have opinions, your how do You know questions are not helpful in any way

 

[Kabeyun]

Maybe the large size of the iphone XR has something to do with it? I wanted a new phone, but didn't want to pay 999 dollars for it and the XR is too big for me. Hence I got an iphone X from last year...
My girlfriend had difficulties understanding why the cheaper model was smaller and I agreed.

This is the part where I also wish for Apple to resurrect the now-surely-dead smaller form factor. I just found my old iPhone 4, and it feels utterly perfect.

 

[smorrissey]

Apparently an Apple employee reached out to Apple Insider claiming there is no fire drill and this is just normal course of business. Hmm...I don’t think putting a $449 price offer on the front page of their website is normal course of business.

Only in the States BTW...

 

[Glideslope]

More proof... Apple should've just lowered the entry prices and this could've been avoided.

It's amazing how many are still in denial about what a flop the new phones are. People are sending a message with their power to purchase, or not to purchase. Apple needs to get off the Greed Wagon and release a simplified iPhone that runs iOS well for a $599 starting point. Boot the Face ID crap and go to Touch ID under glass.

 

[dguisinger]

It’s probably not - but it’s also not a phone which I imagine many X owners are going to move to.

I remember that Apple were *reportedly* surprised by the high demand for the X last year, as they’d expected more of a split between the 8 and the X. If that’s true, it would appear that people prefer to own the flagship models even when there’s a very capable and much cheaper second-tier model such as the XR. The problem is that, for some, the XS is just prohibitively expensive - particularly in the non-US market were import taxes and sales taxes such as VAT (20%) are added.

People keep acting like VAT is unique outside the united states. In the US, we have sales tax. It varies from state to state (and county to county). But you can easily pay 7-10%. The sticker shock in Europe is ahead of time and in the advertised price. In the US, you get the shock of seeing how much you are really paying right as you are clicking order or swiping your card at a register.

 

[Saturnine]

I think the word “overpriced” might be being overused. Apple obviously spends a huge amount on R&D and the components/assembly of the devices. There are also the marketing and logistics costs, plus a healthy profit margin.

The problem is that, if £999 (or the US equivalent) is the lowest price Apple are able to sell the XS for, it’s simply more than many consumers are willing or able to pay. There are many, many other handsets out there that will do 95% of what an iPhone can do for a fraction of the cost. Sure, they may not have the best screens, the best build quality or some of the other cutting edge tech, but in terms of utility they will do almost as much.

I can certainly imagine some consumers spending £700-£800 on an iPhone with hesitancy, but there has to be a tipping point where those same consumers say, “Sod it, I’ll just get that cheap Android instead. It’s almost as good.” And I wonder if we’re now at that tipping point.

 

[Rogifan]

It was catching up to the minimal bezel trend, not to mention the OLED trend.

Aside from maybe Samsung, what other company sells OLED phones in the quantities Apple does? It’s easy to be first with cutting edge tech when you’re not selling tens of millions of phones a quarter.

 

[I7guy]

Well it caught up to the Galaxy S2, by providing an AMOLED screen for the first time. Welcome to 2011. It wasn't until this year that Apple finally allowed duel SIM cards into their phones, HTC Desire did that in 2012. HTC also introduced Qi wireless charging in 2012. I mean come on man just google it this information is not hard to find. I mean thats three areas (pretty big areas I must say) where Apple was 6+ years out of date. Which is funny as Steve jobs boasted the first iPhone was 5 years ahead of other phones (which it was at the time).

Between the 4S and the iPhone X, all those phones were the same, with zero innovation. A larger screen, thumb print scanner, and a skin pack for iOS is not innovation. There should be more to show after 6 years. It is the definition of "resting on your laurels".

Going strictly with your logic.
- OLED isn't innovation because it's been around since 1985.
- SD reader certainly isn't innovation
- IR Blaster isn't innovation
- FM radio isn't innovation
- NFC isnt innovation

So by your own definition android has had no innovation, ever.

 

[msama]

Welp... looks like they found the ceiling. They probably could have found it in a more discrete way, but how they handle this information will be interesting.