Apple Will Not Release First Weekend Sales Numbers for iPhone 7 Due to Demand Outweighing Supply

[sracer]

The people who suspect this is to create hype have no idea how hard it is to match the demand of 20 million people trying to buy a phone at once when you just started manufacturing them 30 days before.

I have a very good idea of the challenges involved. I have even explained it on a few occasions. But when Apple themselves state that they are INCREASING production in the iPhone 7 (due to the Samsung Note 7 issue) that is a clear admission by Apple themselves that they (or their contractors) do not operating their factories at full capacity.

 

[TechGeek76]

I wasn't implying, I was asking... What does selling or not selling say about how much the stock price dropped, or what that implies about the markets view of Apple's future performance?

I don't know what you keep going on about....the OP said he lost 2grand due to the stock falling and everyone is assuming he SOLD it. He didn't. He was making a general comment on how much he has lost. The rest of your post doesn't even relate to his OP.

 

[Analog Kid]

I don't know what you keep going on about....the OP said he lost 2grand due to the stock falling and everyone is assuming he SOLD it. He didn't. He was making a general comment on how much he has lost. The rest of your post doesn't even relate to his OP.

Uh, you replied to me and I was just trying to understand your point. Maybe that's "going on" by some definition.

I have no way of knowing whether the OP sold or not, but I wasn't assuming he did if that helps. I don't know why you're focusing on this narrow point, but maybe that clears up my thinking.

If you want to keep on this, please take a step back and explain to me what you're after because I think there's a fundamental misunderstanding somewhere.

 

[paulold]

I have been upgrading my iPhone every year. Each year, it has been getting harder to justify spending the money for a new phone as they are running out of must-have new features. For example, I have a 6S and upgrading would cost me $1,143 this year if I got the phone, Apple Care and a case. My 6S is still fine. This means spending over a thousand for new features: the improved camera, the water resistance, the faster processor/more RAM, the stereo speakers and an additional $159 if I want the wireless headphones. Are these upgrades alone worth the expense? (FYI, I usually give away my old phone - I've never sold them or traded them in - though I did hold onto my 6 this time around as a backup should something happen to my 6S, since I paid over $1000 for it.

My point is, while there will be plenty of folks who have been waiting to upgrade, I would think the number of people who upgrade each year is probably on the decline. And I know lots of people who are happy with the older iPhone models and don't need the latest thing. So overall, I would think they have saturated their market with iPhones, causing a gradual decline in sales.

I am a little confused about the supply/demand logic of not releasing the numbers. Preorders don't stop when they run out of supply. They keep taking orders; the shipping date simply gets pushed out. So you could report on the number of preorders. I suppose you shouldn't count reservations since that's not really a commitment, but a preorder is, right?

 

[TechGeek76]

Uh, you replied to me and I was just trying to understand your point. Maybe that's "going on" by some definition.

I have no way of knowing whether the OP sold or not, but I wasn't assuming he did if that helps. I don't know why you're focusing on this narrow point, but maybe that clears up my thinking.

If you want to keep on this, please take a step back and explain to me what you're after because I think there's a fundamental misunderstanding somewhere.

I don't want to keep on it, I am after nothing and you are assuming I am. I said nothing more than people are assuming he sold his stock, he didn't. Nothing further to discuss.

 

[maxsix]

It's entirely possible that iPhone 7 sales may be soft. Here on the forum it's about features and such. In the public domain the lack of buzz and little excitement over just another iPhone 6 are very real.

Now that people are waking up to the fact a new iPhone isn't just $199, upgrades have slowed a bit even prior to this release. It'll be interesting to see how iPhone 7 does in the first few months.

 

[jrbdmb]

Exactly. Smart. I'm glad they've stopped releasing sales figures outside of earnings calls. No one else does it. All it does is create a big fat unnecessary target that they're probably not going to surpass anymore now that this iPhone update is underwhelming and angers a large percentage of users.

Fixed that for ya.

 

[BootsWalking]

I think it has more to do with the backlash and noise regarding the removal of the headphone jack. In my opinion the new phones are great, although essentially the same design. I think removing the headphone jack isn't that big of an issue to me personally, but it's more that the lightning port is proprietary. If they went with USB C I think the noise would have been less.

I think the short-to-intermediate term outlook for Apple is a bit dour based on recent events. First, the increase of base storage from 16GB to 32GB is going to hurt Apple's ASP significantly as many will no longer have to purchase the second-tier storage capacity model to get a usable device. That's 15-20% off the ASP for millions of phones, with no evidence that the margin can be recovered through material cost reduction (spot NAND prices haven't moved much). Second, the fact that Apple reduced the price of the SE by $49 today tells me that Apple is facing pricing pressure from the ongoing price declines in Android phones - the SE has supposedly been selling extremely well so the fact that it got a price reduction is surprising. Perhaps that reduction was necessary to keep the price bands separate from the 6s but still, lower ASP to Apple. And lastly, IMO the removal of the headphone jack on the 7/7+ was a strategic mistake irrespective of the objective arguments for/against the jack - the 7/7+ already has an uphill battle to convince people to upgrade and so removing the jack gives consumers one more reason to hold off for another year.

Now all this can change this time next year if the 8/8+ is the innovation beast that rumors are making it out to be.
[doublepost=1473367835][/doublepost]

The only numbers that really matter are quarterly and annual. What happens in that first weekend was never really important.

I generally agree but with humans being the social creatures that they are, lower-than-expected initial sales (as reported in the media) can have a deflating effect on future demand. It's the opposite of the positive feedback loop that Apple products typically enjoy, where reports about great unit sales and shortages triggers social-proof behavior in consumers to buy the product and keep the positive sales momentum going.

 

[9081094]

Like it or not they'll have to release some numbers at the next earnings call in October.

I hope it will be disastrous. Only money wakes them up.

 

[jrbdmb]

Why is there an issue with removing the headphone jack? The headphone jack has been around for decades. It's time for new tech.

It's time for "new tech" only if it is a significant improvement over the "old tech." In this case there is nothing better about Lightning headphone over analog headphones, except that Beats gets to sell a bunch of Lightning headphones to the sheeple.

Of course there also Bluetooth headphones, which work great for some, but I prefer not having to charge yet another electronic device, plus my Senn earbuds sound better than 99.9% of the Bluetooth stuff out there.
[doublepost=1473368625][/doublepost]

Yes indeed.

iPhone 7 is OK for those who need a phone. Or the obsessive "must have the latest" types.

But the rest of us have a golden opportunity to save money and pass on this model. With next year promising some excitement and something new, that'll be the one to consider.

Agreed. Some buy the newest iPhone every year as a hobby of sorts, and if your time the sale of your old iPhone correctly you can minimize the damage to your wallet. But as you said for everyone else this is an easy model to pass over, both for what it removed and for what the iPhone 8 promises.

 

[sracer]

It's entirely possible that iPhone 7 sales may be soft. Here on the forum it's about features and such. In the public domain the lack of buzz and little excitement over just another iPhone 6 are very real.

Now that people are waking up to the fact a new iPhone isn't just $199, upgrades have slowed a bit even prior to this release. It'll be interesting to see how iPhone 7 does in the first few months.

Excellent point. For years people have been talking about "free" iPhones when referring to those phones that had their cost buried in their on-contract monthly bill. One of the many reasons for the iPhone SE's popularity is it's price, as low as $299/$399 for 16GB/64GB no-contract.

 

[jrbdmb]

Like it or not they'll have to release some numbers at the next earnings call in October.

Apple has never released sales figures for its Watch. No reason to think they *have* to release sales numbers for the iPhone 7 next quarter if they feel it will be a negative for Apple.

 

[-RJ-]

Doubtful I will be contributing to first weekend sales numbers, concidering Apple pricing in Norway..
The iPhone 7 starts at $904 here..

 

[Mildredop]

Overnight polling showed little interest in the new iPhone release SO the Apple PR gang hot on the streets flinging the BS - imagine the poor press after low pre-sale numbers. Marketing at it's finest.

Actually? Where are these polling figures?

 

[koruki]

I will be buying one but please don't confuse my sale with me liking what they did with the phone. I'm purely buying it for the 256gb storage and for my wife. She takes a lot of photos of the kids and this storage problem is never ending. I won't be buying one as I listen to music all day at work/out to lunch etc. She doesn't listen to music and doesn't need the speed boost, purely for storage.

 

[kdarling]

They could disclose the number of orders instead of units shipped if they were really looking to be transparent about how demand were going. But I imagine this is more about obfuscating the numbers in case demand is lower than expected. The same as how they still refuse to release sales numbers for Apple Watch.

Apple used to report two values:

-The number of pre-orders, which was always the highest number quoted, since pre-ordered phones didn't have to even exist yet.

-The number of first weekend sales, which required units to at least be shipped and on the way somewhere. That number was lower than pre-orders, but rose every year for a long while partly because Apple added more countries to the first weekend list each time.

The people who suspect this is to create hype have no idea how hard it is to match the demand of 20 million people trying to buy a phone at once when you just started manufacturing them 30 days before.

In 2014, Foxconn was making 640,000 iPhone 6 units a day. At that rate, thirty-one days' head start could've given almost 20 million, ready for sale.

Granted, such a number only happens after assembly crews get up to speed. OTOH, isn't rapid speed of assembly change implementation supposed to be the reason to use Chinese factories?

 

[Tech198]

Makes sense....

I read as "demand outweighing supply" means to me "a shortage is expected"

 

[EiriasEmrys]

Not hard to still sell when you've got a legion of apologists who will buy anything with a shiny apple logo for the sake of it.

I bet samsung wishes they had a legion of apologists as good as ours XD
[doublepost=1473373091][/doublepost]

LOL, nothing you post is factual, you've been called out on this by other members here as well. Mods should really just delete your comments.

Can you post something that isn't an assumption, opinion or the apologetic stance that defends Apple at any cost?

Why are you on here? This is an Apple fan site. You wouldn't go to Comiccon and complain that all the nerds love their anime and comics too much to assess them critically? He has a point that you just ignored. The stickiness of the Apple ecosystem is real and valuable to [us]. Having the newest iPhone for me isn't about the logo, its about being excited to have new tech that fits in the ecosystem of tech that i use. You use apologist in every post, please use it again when you quote me. I'll happily apologize for the tech that i love.

 

[ckhris1613]

They say this every time

 

[44267547]

Believe it or not, I am still a supporter, too. Of course, I'm madder than a hornet about the removal of the headphone jack. I think it's a real shame to retain the comparatively low resolution of the smaller model. I'm very negative on a lot of things Apple right now. Witness my new grumpy signature.

But I do think it is a solid upgrade despite those points, especially for folks who don't give a hoot about the missing headphone jack. I think it's got some good spec bumps and will handle everything iOS 10 and Mario and Pokemon Go throw at it. I originally championed the adoption of USB-C but recent readings about safety concerns over poor implementations of the new standard have got me wondering if Apple doesn't have a point holding back on that for now.

If the cameras on both models live up to the keynote promises, it's going to be a nice point and shoot camera phone, too. Piano black and matte black and silver look slick with the newly moved antenna lines. Rose gold and gold unfortunately still look a little too contrasted. Oh well. The camera bumps are still ugly but I've seen way worse on the competition. At least they're up in a corner, out of the way. The phones themselves don't make me too mad...missing 3.5 jack notwithstanding, which as I said does make me mad. It's other aspects of Apple's doings that have me making my and and faces so often these days.

I don't know if I will get the 7 or not. I'm not preordering this time around, but I'll read all the reviews and play with the store models. I'll give it a fair chance to replace my 6SPlus, which is a fabulous phone but I want an even better camera.

I was at first interested in the Jet Black, but I'm not interested in 128 GB or 256GB for memory. So my focus is on Matte Black. I just need to decide between the 4.7 or 5.5. In think the 5.5 iPhone would be an adjustment for me, but it's worth the extra features and dual camera. It appears the home button has some mixed reviews, but I guess it's another adjustment, similar to the deleted 3.5 Jack.

I actually think this is a nice upgrade. I'm also looking into the Airpods, but their not as sleek as I thought they would be. Time will tell.

The 6s is a great iPhone and even better they discounted It, with 32 GB.

I don't blame you for being upset at the Jack being deleted, but when this was reported back in March, I saw this coming. At least Apple has the decency to supply an adapter, and even if you lose one, their relatively cheap for a replacement.

 

[Nabby51]

well i have iphone 5 and have to upgrade because I get 100 euro credit from provider. Pity that Se did not get space upgrade otherwise it would be much easier for me. they give me iphone se for 19 euros, and iphone 7 128GB for 150.
but I missed when is the Cooperation in Pages, Numbers will be available? That is the coolest feature for me.

Don't do it! Apple is terrible at cloud anything. I have read many horror stories about iCloud drive in general, I would trust any other provider before I trust them.

 

[RedOrchestra]

Actually? Where are these polling figures?

Geez, where have you been - corporations and political candidates are constantly polling and running focus groups AND they never share that date publicly - they just react to the results, as Apple has in this instance. Statistics 101, son - if you get a chance take it as an elective, you'll be better off for it.

 

[MathersMahmood]

I don't care as long as I'm able to get my phone on release day.

 

[maxsix]

Actually? Where are these polling figures?

Google is your friend...

 

[Ulisescm]

I really want the new piano black in 32gb but it seems is not gonna be available at launch