Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Expected given the price and lack of innovation

I can provide a solution for this, Apple: CUT the prices.
The only time prices should be this high is when there's a big leap from the previous generation.

Apple would rather bleed marketshare just so they can protect that 38% profit margin. It's a fairly mature market now, there aren't as many revolutionary features in today's phones. Hard to believe that people don't want to shell out $1500 for a phone.

Looks like the guy in charge of innovation at Apple has taken a 6 year sabbatical.

Of course prices are gonna drop in all markets, they are not sustainable. No CEO in his right mind would keep prices as they are right now.

People are catching on that this phone is severely overpriced and not the premium status device the diehards like to believe. Too many premium devices in the market now.

If this is about Apple and its prices how do you all explain Samsung, LG and all the other big the companies that make big money in China revising their guidance, notifying their investors sales will be less than forecasted and so on? Some of them even more than Apple, despite the lower prices! I am curious.
 
  • Like
Reactions: NetMage
You can go to the Apple web site that has a trade in program and trade in your iPhone X for $450 and buy a iPhone Xs. Why would anyone in their right mind do this?
 
50,000??? Because iPhone sales are expected to be 10,000,000 less than projected?
If I do the math I realize why they build these in China.
 
Apple is innovating. All the custom silicon (Ax/Tx), things like the screen, cameras, and FaceId. All of those items make the iPhones more expensive to manufacture. Apple's company margins have remained the same while raising prices. If the increase in service revenue is also factored in, along with its naturally high margin, then the iPhone margins have been shrinking with every generation.

Maybe Apple got too far out in front with innovation causing the phone price to go up too much too quickly. Simply complaining about prices is not understanding the whole situation.

Fair observation. So, perhaps the issue is that (1) customers don't see the added value in the innovation, and/or (2) customers don't see the value in certain features.

Case in point: FaceID

I don't have a FaceID phone but have played with one enough to know that it is indeed very cool. However, the price point required versus TouchID is not acceptable.
 
  • Like
Reactions: Peperino
Apple needs to dump the XR and move the XS to $799 64 GB. Admit the mistake and move on. I hope they really don’t plan on releasing another LCD iPhone in 2019.

What Apple needs to do is to have a phone option for those of us who don't give a crap what it's made from because it sits in a case all it's life. I would love to have the guts of an XR in a case made of plastic, for $200 less. I'd slap it in a case and be happy as a pig in you know what. A lot of the iPhone cost is in the expensive casing.

What's the point of a glass back if its gonna sit in a case? What's the point of stainless steel sides if it's gonna sit in a case and none of it is seen?

Make the expensive glass/glossy devices for those who want them, and also love dropping and breaking them.
 
Apple is innovating. All the custom silicon (Ax/Tx), things like the screen, cameras, and FaceId. All of those items make the iPhones more expensive to manufacture. Apple's company margins have remained the same while raising prices. If the increase in service revenue is also factored in, along with its naturally high margin, then the iPhone margins have been shrinking with every generation.

Maybe Apple got too far out in front with innovation causing the phone price to go up too much too quickly. Simply complaining about prices is not understanding the whole situation.

Apple is NOT innovating. It is just barely upgrading.
Technology prices actually go down with time. Look at LED TVs. Even in the past every new Apple product used to be at the same price of the old one. Now, Phones have gone up 100% in the period of 3 years.
Considering that the upgrades were not that innovative, the price gauging is quite obscene. Especially considering that it is as expensive as a Macbook Pro.
And you can see that users that use to upgrade every 1-2 years are voting with their wallets and are not upgrading anymore. It has nothing to do with market saturation. It has to do with the ridiculous pricing.

The problem is Apple greed.
 
I kept yelling apple is doomed for the past two year and some "smartasses" thought i was crazy and made fun out of me. HA! Next time listen to me.
 
  • Like
Reactions: iSilas
All major companies are getting ready to report bad financials and outlooks. We’re hyper focused on Apple when ignoring the canary in the coal mine of impending international recession.
 
If this is about Apple and its prices how do you all explain Samsung, LG and all the other big the companies that make big money in China revising their guidance, notifying their investors sales will be less than forecasted and so on? Some of them even more than Apple, despite the lower prices! I am curious.

My understanding is that no other company had brand fidelity as much as Apple, and no other brand in the smartphone field had so much status symbol value. That's why it's worrying for Apple.
 
iPhone XR should’ve been $699, the XS should’ve been $899, and the XS Max should’ve been $999. Demand would’ve been much higher and I bet you the profits would’ve been higher too.
 
  • Like
Reactions: diandi
I can provide a solution for this, Apple: CUT the prices.
The only time prices should be this high is when there's a big leap from the previous generation.

Apple thinks having a CPU with 5 billion (or whatever) instruction executions per second actually means anything to a normal user. The CPU must have upgraded by maybe 500% since my iPhone 4S/6, but realistically, did I need that much processing power to do the same thing I've always done? E-mails, browser, chat clients, maybe a few social media apps.

These "huge" processing power upgrades are redundant - things that would actually benefit the average user are things like much more superior battery life, perhaps larger iCloud storage, technology which finds a work around to the notch and advances so we no longer have a camera bump.

Perhaps more focus on a competent Siri and iOS updates that make it more feature rich like Android is what they need to focus on. I really won't care if iPhone 11 has a 35% more powerful CPU.
 
A lot of the advice in here is very short-sighted. We can’t forget that this is happening to the smartphone market as a whole, not just Apple. It’s a result of smartphones maturing as a market. Samsung faced significantly lower sales than expectedly on their Galaxy S9s.

Also, this:


People also seem to not be realizing iRutherford’s point. Marketing 101: Discounts might work in the short-term, but they ruin your brand image, can ruin customer loyalty, and make things worse for the business in the long-run. And again, imagine the outrage from huge Apple loyalists who bought the devices already for full price.

Let me also mention that the Galaxy Note 9 was released at $1000 and went up to $1250. The Google Pixel 3 starts at $800 and the Pixel XL starts at $900. Apple isn’t the only one that has high smartphone prices.

It’d be stupid and would hurt Apple in the long run to lower prices now. The entire smartphone market is facing decreased demand, not just Apple.

You are correct, but I'll counter with a question.

What is the year-over-year objective? Is it to maintain profit margins, or to keep selling new product? The reality is that both objectives (and many others) come into play here.

My personal take on this is that the entire SmartPhone market is overpriced compared to the perceived customer value. Doesn't matter how great the phones are if a customer can't see the value for the price. I think we're going to see an entire industry shakeup of some kind that will result in a price reset (versus a discount) to something the market will tolerate. Basic economics 101 covers price elasticity, and this one is just about broke.
 
COMPLETELY WRONG

Please watch this 2 minute explanation from Steve Jobs


Wow. Thank you for sharing. That's even more poignant, and tragic, than the sedentary screen addicts in WALL-E.

Of course, the difference today is that there are thousands of talented engineers at Apple that do have a clue how to make great computers but, sadly, that is not longer a priority for Tim, Eddie, Jony, and Phil.

It's also crushing that 50,000 blue collar workers lost their jobs earlier than expected because of Cook's hubris.

My only hope is that the board steps in, and takes action.
 
Apple thinks having a CPU with 5 billion (or whatever) instruction executions per second actually means anything to a normal user. The CPU must have upgraded by maybe 500% since my iPhone 4S/6, but realistically, did I need that much processing power to do the same thing I've always done? E-mails, browser, chat clients, maybe a few social media apps.

These "huge" processing power upgrades are redundant - things that would actually benefit the average user are things like much more superior battery life, perhaps larger iCloud storage, technology which finds a work around to the notch and advances so we no longer have a camera bump.

Perhaps more focus on a competent Siri and iOS updates that make it more feature rich like Android is what they need to focus on. I really won't care if iPhone 11 has a 35% more powerful CPU.

Perhaps not, but you WILL care if the new Siri, Camera and other wiz-bang features don't work quickly. I see this as a chicken-and-egg concern. Fast processing enables new features... not the other way around.
 
Perhaps not, but you WILL care if the new Siri, Camera and other wiz-bang features don't work quickly. I see this as a chicken-and-egg concern. Fast processing enables new features... not the other way around.

But Siri sucking isn't due to the CPU. Other providers have managed to do a better job with a far inferior CPU. Siri has underlying issues from original implementation which Apple are too scared to start from scratch from, even under the advice of leadership who have taken over the project.

It is an issue of will, not means.

Also, the use of "AI" had actually made the camera in some cases objectively worse. These new "AI" notifications I get also are simplistic and of low value, I don't like them calling it "AI" to be honest, iOS 12 has a pretty crappy implementation. My 3 year old Samsung was far better at providing insight, like knowing what team I support so it would randomly remind me that the team was playing tonight etc.
 
The Jobs -> Cook transition/era (innovation stopping, the Apple "magic" disappearing, more variants of products with pricing and other financial engineering taking the place of innovative engineering) seems spookily the same as the Jobs -> Scully transition/era (with one being a "marketing genius" the other a "supply chain genius")... wonder what Tim's Knowledge Navigator video and Newton equivalents will be... thought the video now will be produced as a mega-budget Hollywood blockbuster (and thinking his "Newton" will be AR?)
 
But Siri sucking isn't due to the CPU. Other providers have managed to do a better job with a far inferior CPU.
...because they offload it to their servers to collect ever more information on you. It's a different approach to an assistant.

I don't really use Siri for much other than making calls, but I really do respect Apple's approach to doing as much processing on-device vs. the Amazon and Google model.
 
  • Like
Reactions: NetMage
...because they offload it to their servers to collect ever more information on you. It's a different approach to an assistant.

I don't really use Siri for much other than making calls, but I really do respect Apple's approach to doing as much processing on-device vs. the Amazon and Google model.

That is one limitation, but they had methods to bypass that to some degree without going all Google mode to improve machine learning. But as stated previously, the architecture of Siri, nobody likes, not the engineers and not the leadership.

Siri is just not a priority right now for Apple and that is why it is stagnating, not because they don't offload info to servers etc.


This gave an alright overview imo.

To give you an example, just ask Siri and Google Assistant some random question which it needs to reseearch the internet for (so nothing to do with user data) - you'll get a much better experience with GA. Also, try asking follow up questions, you can't on Siri. You can manipulate GA to do a lot more. None of this is to do with data, just implementation. Apple could do what GA does without compromising user data at all in this regards 100%.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.