Apple Shipped an Estimated 36.4 Million iPhones Worldwide in Q1 2019, a 30% Year-Over-Year Decline

[Benjamin Frost]

It seems that it can't be a coincidence that they decided to stop reporting units sold last quarter. They must have seen this coming. And maybe wanted it to be this way (sell more fewer but more expensive devices).

I think they could easily increase the number sold if the released a new iPhone SE. But I wonder if they've calculated that an iPhone SE would actually decrease overall revenue, cannibalizing sales of their expensive iPhone XS and XR phones.

With the iPad they've aggressively gone after all parts of the market (from the entry level 329 model low-end which often sells at 249 to the iPad Pro 12.9 starting at 999).

I have to assume it makes financial sense for them not to target a lower end market with the iPhone SE? That they would see no reason for these new, big expensive phones.

But I think consumers would really like the option.

I am certain that Apple have deliberately discontinued the iPhone SE for the reasons you say: it would cannabilise the much more expensive iPhones and lead to a drop in revenue. But that is the ethos of Tim Cook's Apple: Make Money, Don't Worry about Quality. I preferred Steve Jobs's approach: Make the Best Possible and the Money Will Follow.

Unless Apple bring out a follow-up to the size of the SE, my next phone will be Android.

 

[I7guy]

Here is the thing that I get from consumers perspective such as myself and my friends. Apple used to be this amazing brand the led the way. Samsung followed, even copied, but then around iPhone 7, things started to change. I saw the people's interest slowly move away from Apple. Yes, many still went in hordes to buy the latest models, but the talks about how great Apple is started to disappear. This was the beginning of Apple becoming just as every other tech brand.

Nowadays, I do not hear people praising Apple or iPhones. Nowadays it's about the price and how boring iPhones have become. People have definitely noticed the ridiculous price increases since 2016 (only 3 years), and are now more open to other options. Yes, iPhones are still excellent devices, however, not everyone sees it reasonable to pay the crazy prices and either go with other Android options or buy an older model of iPhone. And this consumer perception is totally Apple's fault.

And please, do not start telling me the tech inside the X is too expensive and all the jazz. Average consumers do not care.

I think your right. I hear very little about people talking about phones nowadays. They’re commodities. However iPhone does seem to rule.

 

[FFR]

I think things changes when the iPhone 7 appears, not because of the iPhone but then (i feel) all the competition was at least as good as the iPhone 7 (means, they have at least one phone in their portfolio that was...) and for most people most smartphones offer basically the functionality they need:

• A good screen for browsing / chat / E-Mail / Messaging
• A reasonably good camera
• Sufficient battery life
• App support

There was no USP to iPhone anymore. Even the design of other brands was good and simply a matter of taste. I know many friends that do not even care about the OS and the privacy advantages that (supposedly) come with iOS devices. This is just something most people don't care about.

Samsung is just ONE competitor. In 2018/2019 Huawei seems to be to most serious competition. They have learned from Apple. And their "lite" models offer everything most users need and they are dirt cheap when compared to the "budget" XR.

Then why does the xr outsell Huawei P30 or mate 20?


If you think the iPhone doesn’t have a USP or that competitors have caught up with the components in the iPhone, you have been sorely misinformed.

Premium android smartphones are not selling, just the cheap ones.

Apple does not sell any iPhones below $750, unless you want a 2 or 3 year old iPhone. Most of their sales are of the high end models, just look at apples asp compared to any competitor, it’s not even close.

It’s not really a question of competition anymore.

 

[Wiesenlooser]

I knew the sales drop had to be huge considering Apple's equally huge announcement of buying back $75B in shares today. Apple is following in IBM's footsteps - using financial engineering to mask an underlying deterioration in its core business. Time will tell how well their growing services business will be able to pick up the slack.

YES! This is a much bigger warning sign than sowing sales. IT essentialy proves that they dont know what to do with their money.

 

[Benhamdoun]

Apple has got to stop giving shareholders huge dividends and invest the money in better specs. My wife's Huawei P30 Pro's 50x zoom and low light photography result expose my XS as old tech. In the USA Huawei are frozen out by Apple's pressure on government and retailers but there's a reason Huawei have grown 50% in a year despite have no access to the richest market and it's obvious: increasingly many people in Asia and Europe want the best phone and are less bothered about the badge than previously.

 

[zonemster]

What a crack of BS, all the data moved by 3-4% while Apple tanked 8%, and it grew for 4Q while beginning of 2019 for some reason everyone just dumped their iPhones, BS FUD

 

[russell_314]

The perception of Apple being the best and the leader had started to change around the release of iPhone 7- a device that looked like a rehashed 6-series to many.

XR is not an affordable phone to many. €855 for a "budget" phone does not pass with many, especially that this was the price of their flagship just in 2016. The stuff you get with Samsung S10 for that price blows XR out of water.

You can find many excuses for their situation, but the reality is here. The phones are overpriced for many. It does not mean the people cannot afford it; many can, they just choose not to buy.

I personally used to upgrade every single year from 3G until 6s. I do not do that anymore as it makes no sense to shell out this much money for what they offer.

"The perception of Apple being the best and the leader...." Maybe you mean your perception or rather how you feel about the perception? If this was the actual perception of everyone not just yourself then why didn't sales drop?

 

[FFR]

Apple has got to stop giving shareholders huge dividends and invest the money in better specs. My wife's Huawei P30 Pro's 50x zoom and low light photography result expose my XS as old tech. In the USA Huawei are frozen out by Apple's pressure on government and retailers but there's a reason Huawei have grown 50% in a year despite have no access to the richest market and it's obvious: increasingly many people in Asia and Europe want the best phone and are less bothered about the badge than previously.

Specs are more than a zoom lens and hold the phone steady for 5 secs to take a over processed picture at night .

Huawei doesn’t actually sell that many p30 or p30 pro units, don’t really know what your point is.

 

[antonrg]

"The perception of Apple being the best and the leader...." Maybe you mean your perception or rather how you feel about the perception? If this was the actual perception of everyone not just yourself then why didn't sales drop?

If you read my original post, I clearly stated it is something I noticed from myself and my friends... I never spoke for everyone.

 

[russell_314]

Then why does the xr outsell Huawei P30 or mate 20?


If you think the iPhone doesn’t have a USP or that competitors have caught up with the components in the iPhone, you have been sorely misinformed.

Premium android smartphones are not selling, just the cheap ones.

Apple does not sell any iPhones below $750, unless you want a 2 or 3 year old iPhone. Most of their sales are of the high end models, just look at apples asp compared to any competitor, it’s not even close.

It’s not really a question of competition anymore.

This explains much of the hate for the iPhone. It's people with $199 Android phones angry that they can't afford the latest iPhone. Perhaps if Apple would make a cheaper product line like Samsung or Huawei they wouldn't be so hated
[doublepost=1556711455][/doublepost]

If you read my original post, I clearly stated it is something I noticed from myself and my friends... I never spoke for everyone.

So it's just you and your friends that dislike or have a problem with the iPhone... That explains a lot

 

[Biu_miu]

I don’t doubt there’s a group of people who want a smaller phone, I actually think that is where the industry will head in the future, but it’s not going to lead to iPhone growth. Neither will a folding phone. They need to look elsewhere for growth, which is exactly what they have done.

Yes. I never heard someone complaining, that they want or need bigger phone. Don’t over hype every day users need for enormous screen. I only have heard people asking, if SE 2 is out and will there ever be some good small phone option for iOS. Literally, multiple times a week ( I work in a related field).
Be honest, if Apl updated SE or introduced SE sized phone with X body- it would be a hit. But they will not do that, because, if this phone was like ~600 $, they would sell absolutely 0 super premium XS or even cheaper XR.

 

[Benjamin Frost]

Actually no it's not a fraction of that. Apple can differentiate between active devices.

"“Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter"
Source https://www.apple.com/newsroom/2019/01/apple-reports-first-quarter-results/

Active devices is pretty meaningless. Many people have multiple devices. Unique users is a more accurate way to define Apple users. If Apple regularly published iCloud accounts each quarter, for instance, that would give a good idea of how many people use Apple. But they don't.

 

[russell_314]

Yes. I never heard someone complaining, that they want or need bigger phone. Don’t over hype every day users need for enormous screen. I only have heard people asking, if SE 2 is out and will there ever be some good small phone option for iOS. Literally, multiple times a week ( I work in a related field).
Be honest, if Apl updated SE or introduced SE sized phone with X body- it would be a hit. But they will not do that, because, if this phone was like ~600 $, they would sell absolutely 0 super premium XS or even cheaper XR.

I think the need for a smaller phone will soon be replaced by some type of wearable device that can be worn when carrying a larger phone isn't practical. That's just my opinion of course.
[doublepost=1556711732][/doublepost]

Active devices is pretty meaningless. Many people have multiple devices. Unique users is a more accurate way to define Apple users. If Apple regularly published iCloud accounts each quarter, for instance, that would give a good idea of how many people use Apple. But they don't.

I think you should call Tim Cook and demand that information ASAP. I mean if active devices are meaningless he will have no choice but to comply!

 

[FFR]

Active devices is pretty meaningless. Many people have multiple devices. Unique users is a more accurate way to define Apple users. If Apple regularly published iCloud accounts each quarter, for instance, that would give a good idea of how many people use Apple. But they don't.

Except you don’t need an Apple ID account to use an iPhone.

It’s not a requirement.

 

[chatin]

30% is that "falling off a cliff" number I was predicting since the X came out. The design is everything Jobs would never do. "No product yet", he would say. Services can't save Apple if there is no product to run them on.

 

[antonrg]

This explains much of the hate for the iPhone. It's people with $199 Android phones angry that they can't afford the latest iPhone. Perhaps if Apple would make a cheaper product line like Samsung or Huawei they wouldn't be so hated
[doublepost=1556711455][/doublepost]
So it's just you and your friends that dislike or have a problem with the iPhone... That explains a lot

This forum is to share opinions and views and provide insight on what is going on in the world outside of the US too. I have expressed my opinion, I never claimed it was the case with everyone everywhere. However, the article seems to suggest there has been a decline in sales, so whether you like it or not, it's what's happening. Instead of shooting down every point I make, perhaps you could appreciate the fact that something is happening elsewhere, just for the sake of new information.

I literally have nothing else to tell you. Bonne journée.

 

[FFR]

This explains much of the hate for the iPhone. It's people with $199 Android phones angry that they can't afford the latest iPhone. Perhaps if Apple would make a cheaper product line like Samsung or Huawei they wouldn't be so hated
[doublepost=1556711455][/doublepost]
So it's just you and your friends that dislike or have a problem with the iPhone... That explains a lot

Thats the crux of it.
Their understanding of components are limited to ram and megapixel count.

The are very angry and hostile when it comes to apples price points.

 

[salukimike]

Apple bought back $75B in stock today. That definitely factored into the stock price today.

That's not how it works. They ANNOUNCED that they were adding to their buy back program. They couldn't just go buy back $75b in one day. The SEC doesn't allow it, and they would be foolish. They outsource it to a bank (Goldman has a big buyback desk) and they choose when to buy, but they will almost always wait for the market to soften before buying.

 

[ipponrg]

Tim Cook stated on the investor call that there were 1.4 billion Apple devices in active use, the highest ever. This also includes iPads, Macs, Apple Watches and other devices, but the number of iPhones is likely very close to 1 billion.

I wonder how many devices the average household owns. I consider myself not invested in the Apple ecosystem, and I regularly turn on my iPad, iPhone, MacBook 2016, and MacBook 2018 for work. That’s 4 for me, and I’m casual.

 

[RickInHouston]

Apple Shipped an Estimated 36.4 Million iPhones Worldwide in Q1 2019, a 30% Year-Over-Year Decline

Almost any other company in the world would be ecstatic if they shipped 36.4 million of anything in a single three month period.

That's called cherry-picking.

 

[dilbert99]

If someone says the iPhone is too expensive independently for them, then it is. But no one (Or Apple) looks at independent sales, it’s looked at as a whole, which means that more ‘expensive’ iPhone models are still selling, but likely not to Apple‘s expectations. That would be the clear difference I think in your post.

I was replying to someone saying that iPhones weren't too expensive in response to someone who said they were.
Its a subjective term like you say and I was pointing that out.

But I think the data is in. Never before has there been so many people in forums complaining about iPhone prices.
Apple sales of iPhones have plateaued/fell a bit.
Exchange rates are high which is a double whammy.
If exchange rates were not high I would suspect Apple would be making even more profit.
[doublepost=1556714166][/doublepost]

Only the market can dictate whether the iPhone is considered expensive or not

You can say it’s to expensive for you.

The meaning of expensive does not relate to volume.

Big houses are expensive to keep.
iPhones being the number 1 profit maker and being the highest priced phones are by definition expensive.
Business class is expensive.

 

[Steve63]

Then why does the xr outsell Huawei P30 or mate 20?


If you think the iPhone doesn’t have a USP or that competitors have caught up with the components in the iPhone, you have been sorely misinformed.

Premium android smartphones are not selling, just the cheap ones.

Apple does not sell any iPhones below $750, unless you want a 2 or 3 year old iPhone. Most of their sales are of the high end models, just look at apples asp compared to any competitor, it’s not even close.

It’s not really a question of competition anymore.

Ok, i get your point.
USP: What i wanted to say is that for many people, iPhone does not have a special value when compared to most Android devices. It might be that iPhone has better components (being it cameras, modems, screen, you name it) but many people just don't care because what cheaper phones offer is enough for them.

When people have the choice between "premium" Android phones and iPhone, most will choose iPhone.
So you're right when talking about the premium segment.

Apple looses market share because the "mid price" segment is growing and people do not see the additional value of iPhone for them.

At least, this is what i observe...

 

[the-bigwig]

Well, everybody thinks a third place is a loss for apple. Well, not. That whole graph is not an important thing for Apple and therefore they doesn't care to change that and will never do it. Just like t-shirts sold in 2019. I suppose the top places will be occupied by cheap brands like H&M, Zara and lookalikes. The Pradas or Guccis tees on the other hand will be placed right on the bottom. But that's the point.

And that's why I'm mad. They will not change their pricing policy ever at all.

 

[Macbook14in]

Apple is going down the BlackBerry's path

 

[FFR]

I was replying to someone saying that iPhones weren't too expensive in response to someone who said they were.
Its a subjective term like you say and I was pointing that out.

But I think the data is in. Never before has there been so many people in forums complaining about iPhone prices.
Apple sales of iPhones have plateaued/fell a bit.
Exchange rates are high which is a double whammy.
If exchange rates were not high I would suspect Apple would be making even more profit.
[doublepost=1556714166][/doublepost]
The meaning of expensive does not relate to volume.

Big houses are expensive to keep.
iPhones being the number 1 profit maker and being the highest priced phones are by definition expensive.
Business class is expensive.

It’s only expensive if not enough people are willing to pay for it, hence market dictates.

If you fly economy, business class is indeed expensive....if you fly first class, business class is a bargain, economy is practically free in comparison.


Premium smartphones like premium goods and service are priced accordingly, and so is the iPhone.

Just because you find it expensive or out of budget does not mean a market does not exist for the said iPhone.

You didn’t seem to have a problem with the galaxy fold being 2000 dollars, or the fact that it don’t have a headphone jack, seems hypocritical.