Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Gartner: iPhone Sales Suffered Worst Quarterly Decline for Three Years Over 2018 Holiday Period
- Thread starter MacRumors
- Start date
- Sort by reaction score
You're both right. it's not one thing that causes a 9million dollar decrease in volume but a few factors. Price is only one part of the decision making practice. For example, if the iPhone Xs was $999, but had some absolutely knockout feature that nobody else in the entire world had, and everyone wants? people might just have been lining up to pay. But when you do a small, iterative upgrade, without adding anything new, AND want to charge $999... people will balk and wonder just where's the value for those prices.
the iPhone X(s/r) are great phones. but $999 USD is a hard pill to swallow since they are ultimately now parity products in a mature market. which is not a market type that allows for constant ratcheting up of prices, since parity products will come in cheaper and offer 90% of the value for 50% of the price.
Canadian prices are insane considering we are so closely tied economically to the US. While I Get that the USD > CAD, Canadians don't make 35-45% more on average than their american counterparts. Yet our prices are 35% more expensive. Even with the dollar conversion, that includes an addtional $50/ iphone unit above the exchange in more profit.
Apple's US egocentricity with pricing is going to hurt them in international markets. Just because you can get away with selling an iPhone in US for $999, doesn't suddenly mean that the entire world is going to be ok paying $999 USD.
Entry Level Xs starts at $1,379.CAD (1558.27 w/tax)
Xs Max at 1519 CAD (1716.47 w/tax)
Xr at $1029 CAD. (1162.77 w/tax)
none of these prices also include applecare.
these are ludicrous prices for an iPhone.
The cost isn't an issue for me. I have always had no problem selling my current iPhone to someone in my office for a decent price.
My big issue is the lack of substantial new features. The camera is always my big thing, and this one just isn't a big enough jump to make it worth it (I have the X right now). Maybe this fall. The X2RS 1.0.
My big issue is the lack of substantial new features. The camera is always my big thing, and this one just isn't a big enough jump to make it worth it (I have the X right now). Maybe this fall. The X2RS 1.0.
Your analysis is poor. People don’t upgrade every year. It’s more like four years now, so your $4/day is $1/day. And the $749 XR is little changed from the $699/$799 8/8 Plus it replaced. It can last four years as well, so now your looking at 0.50/day. People pay 3-5 times that amount to their carrier for monthly service.
The four year upgrade cycle has little to do with “innovation” as people like to parrot. It has to do with the fact that my 6S is still perfectly sufficient. It doesn’t matter how much “innovation” is added, that’s not what drives upgrades. Phones breaking, being lost and finally aging out of serviceability drives much more of the upgrade volume than someone wanting “innovation”.
Apple’s long-lived, dependable and fast, capable phones work against them, despite the “planned obsolescence” that people claim. But Apple is actually ok with this, because they know you’ll buy an iPhone when the time comes. So they introduced the super-premium tier to compensate for slowing unit sales. If people want cheaper, a $450 iPhone 7 is still a great iPhone tgat takes excellent pictures, which is what matters to a lot of people.
Complain all you want about pricing, but if you think prices are going to drop in most countries, you’re wrong. Sure, they’ll cut $100 in China and adjust in some markets for currency hits, but a $1,000 phone isn’t going to become a $500 phone just because the mid-market is where the action is in China. $750/$1,000 isn’t likely to change much for most.
Last edited:
Yes, iPhone revenues actually grew YoY in CY 2018 by about 6%. That's about the same growth as there was in CY 2017. CY 2016 saw a significant decline in iPhone revenues.
Annual iPhone units have actually been dropping since CY 2015. Unit sales - and not just revenue - matter, of course, in part because they affect how many iPhones are in use. But what's happened is that installed base continues to grow - and that's what matters when it comes to units - because older iPhones stay around longer. They're either kept longer or sold or handed down.
So, even though the premium smartphone market is facing strong headwinds, Apple is still doing fairly well on both fronts - generating revenue and increasing installed base. In the aggregate, its pricing strategy is working - though, of course, there are areas where pricing is a problem.
They raised their price substantially on their biggest flagship product - which in turn, gets people to buy apple watches, airpods.. etc. Without an attractive price, the entire ecosystem is going to take a hit.
Hey Apple, Newsflash! No one really wants to pay $1000 for a phone, and some can't ever afford that!
This is where I have to question the current direction.
Apple's current plan is to trade market share for profits / revenue. Very high prices, but less volume. This is ok strategy if you're willing to shrink your installation base on the long term as higher prices DO affect the purchasing decisions. the principle of price elasticity isn't some made up myth that doesn't impact economics and purchasing factors.
So if Apple is willing to let their volumes slide in exchange for higher profit margins todays, what will the effect be 1 year from now? 5 years from now? etc. How will this impact the ecosystem as a whole. Less people potentially getting into it means less accessory sales. Less service sales. Less revenues from other things possibly.
So far, the results are showing exactly what I've expected so far given Apple's current leadership
Great analysis.
This report is silly because we know the Xmas quarter unit sales for iPhone last year and Gartner has the number lower, and completely wrong.
ItS AlL BeCaUSe THerEs No 4-InCH OpTiON!!!!!
[doublepost=1550758030][/doublepost]
[doublepost=1550758030][/doublepost]
2019 iPhone certainly isn't going to fix any of the innovation issues. But from what we've heard so far, it sounds like the 2020 iPhone is going to wipe the floor with every other flagship, in terms of innovation.
maybe if they made an SE2 for the millions of us who like a smaller phone, they made see a jump in sales again
Yes, there could be other factors, but the main factor may have been battery upgrades!
What will Apple do next to get people to upgrade?
But the upgrade cycle now with $1000+ phones is 4 years. It used to be annually, then every two. Now it's around 4. That's why sales have slipped dramatically.
From the original iPhone through the iPhone 6S, I had every one. I upgraded annually as did millions of other people. I didn't switch from my iPhone 6S until the X because of the $850+ price tag, not because I didn't want to.
Lack of innovation as a reason for loss of sales? Maybe, though personally I think the jump in features from one iPhone to the next has been pretty stable over the years.
People used to upgrade annually or every other year, even when their phones were still perfectly usable. They upgraded to have the latest and greatest. And they could afford to do so when phones were $500-$700. People simply aren't going to do so with $1200 phones.
And I don't think prices will drop. That's the rub. Apple is happy with the prices, even if they sell fewer. Shareholders/Wall Street won't like it. But Apple management is fine with it. That's their right, of course, but it isn't going to help Apple remain a trillion dollar company.
Perhaps we're arguing the same point but from different directions. High prices today are preventing users from upgrading as frequently, thus sales are down. And Apple couldn't care less. Apple has decided their phones are worth a certain amount, and that's what they'll charge, regardless of how many they sell. But like I said, Wall Street isn't going to be happy. Whether that matters is the unknown.
Last edited:
Mr. Cook. It's not really the price. Even if you'd halve the price of the XR or XS: I won't buy it. If you'd give me an XS for free now, I'd swap it for a second hand SE immediately.
It's not the price Mr. Cook. It's the device. Bring the SE2 and you'll be back in business. No doubt about that. It even doesn't need to have all the bells and whistles of the high end iPhones. It's just to be a basic tool for every day professional use.
Same holds for your MacBook Pro. The current one is just a joke for professionals. The touchbar, the no-traffic keyboard, the lack of ports and the laptop being thin are nothing more than gimmicks, not at all appealing to many a pro. If you'd give me a brand new Macbook Pro, I'd swap it for a 2015 version - it's the last Macbook Pro with the professional in mind.
I won't even start about the new Mac Mini or the way outdated Mac Pro.
It even looks like you've hired Gassée again with the seemingly high-margins - remember his mantra "55 or die" referring to the targeted 55% margin?
It seems to be time to change course, Mr. Cook. Quit being an expensive exclusive fashion brand, you're in technology. It's not too late yet but it sure sounds like time is ticking. Around me people start to turn away from the Apple family. Me included.
I don't know if I'd buy another Apple as I just don't have faith in the current direction of Apple. To me a laptop running Ubuntu, a high-end Android phone, a Microsoft Surface tablet, a Chromecast and a Google Home start to appeal more every day. For instance I already replaced my Apple mice for the most expensive Logitech ones. They're better, they do answer to my needs. Again, it's not really the price, mr. Cook, it's the device. IMHO you're just on the wrong track.
It's not the price Mr. Cook. It's the device. Bring the SE2 and you'll be back in business. No doubt about that. It even doesn't need to have all the bells and whistles of the high end iPhones. It's just to be a basic tool for every day professional use.
Same holds for your MacBook Pro. The current one is just a joke for professionals. The touchbar, the no-traffic keyboard, the lack of ports and the laptop being thin are nothing more than gimmicks, not at all appealing to many a pro. If you'd give me a brand new Macbook Pro, I'd swap it for a 2015 version - it's the last Macbook Pro with the professional in mind.
I won't even start about the new Mac Mini or the way outdated Mac Pro.
It even looks like you've hired Gassée again with the seemingly high-margins - remember his mantra "55 or die" referring to the targeted 55% margin?
It seems to be time to change course, Mr. Cook. Quit being an expensive exclusive fashion brand, you're in technology. It's not too late yet but it sure sounds like time is ticking. Around me people start to turn away from the Apple family. Me included.
I don't know if I'd buy another Apple as I just don't have faith in the current direction of Apple. To me a laptop running Ubuntu, a high-end Android phone, a Microsoft Surface tablet, a Chromecast and a Google Home start to appeal more every day. For instance I already replaced my Apple mice for the most expensive Logitech ones. They're better, they do answer to my needs. Again, it's not really the price, mr. Cook, it's the device. IMHO you're just on the wrong track.
Well, think of Nokia. Who went from 50 billion euros of net sales to 12 billion in a matter of years. (Source: https://www.statista.com/statistics/267819/nokias-net-sales-since-1999/) And this is is ALL sales, not only smartphones, but also feature phones, which Nokia sort of continued to be strong in (in developing markets).
If Apple prices itself out of the market, they could also face a rapid decline.
"Apple CEO Tim Cook recently said that the company is "rethinking" iPhone prices outside of the United States"
Soon to come, Americans camping outside Chineese Apple stores to grab all the iphones they can, so they can sell them below price at home.
Soon to come, Americans camping outside Chineese Apple stores to grab all the iphones they can, so they can sell them below price at home.
There is no technical progress anymore. Everything the average costumer does he can do with a 6s/SE.
But Apple still tries to sell phones for prices three times higher than what those cost-this does not work anymore.
The future is in below 300$ smartphones, even die hard fanboys don’t upgrade anymore.
I myself will say goodbye to Apple in some month and shift over to a xiaomi mi 9s. For 250$ i get everything i need with superior build quality.
The only thing i would buy from Apple is a tablet once my iPad dies. That’s the only thing were they are ahead of the market and not following.
But Apple still tries to sell phones for prices three times higher than what those cost-this does not work anymore.
The future is in below 300$ smartphones, even die hard fanboys don’t upgrade anymore.
I myself will say goodbye to Apple in some month and shift over to a xiaomi mi 9s. For 250$ i get everything i need with superior build quality.
The only thing i would buy from Apple is a tablet once my iPad dies. That’s the only thing were they are ahead of the market and not following.
Due to strong USD and prohibitive taxes, iPhones outside USA (possibly few markets in Europe as well) will continue to cost big fortune and to top it there are many options which are far more competitive in features, innovations and significantly lesser in cost. If this trend further continues and trend gets consolidates then it will eventually create big problems.
Having dominated the market for quite sometime, their distrudistri and retail networks probably absorbed lot of the Apple problems to push the numbers where they are now but obviously that may not be sustainable for every quarter unless there is serious interest in buying.
But with trade restrictions on Huawei and others, Apple will be safe in USA for long..
Having dominated the market for quite sometime, their distrudistri and retail networks probably absorbed lot of the Apple problems to push the numbers where they are now but obviously that may not be sustainable for every quarter unless there is serious interest in buying.
But with trade restrictions on Huawei and others, Apple will be safe in USA for long..
Isn't it only a decline in SHARE? .. cause you can be selling more and lose share at the same time
Idiotic to raise the entry price from $350 to $450. Tim Cook should be fired.
[doublepost=1550761117][/doublepost]
That phone is $450 and it runs Android. I personally think Android sucks.
[doublepost=1550761117][/doublepost]
That phone is $450 and it runs Android. I personally think Android sucks.
I understand that Apple is focussing more heavily on the growth of their service revenues for "life after iPhone", however they'll have to realize that focus runs contrary and may be undermined by selling only premium, high-priced phones. To expand service revenue, they'll need to focus on getting more new customers to buy into, enjoy, and become dependent on the Apple ecosystem. I could use a new/newish iPhone, but the prices are sadly off-putting. I'm really ready for a new MBP, but can't possibly go there due to the hardware issues and pricing.