iPhone Chipmaker Dialog Reports Low Sales Projection for Fourth Quarter

Discussion in 'iOS Blog Discussion' started by MacRumors, Jan 14, 2019.

  1. MacRumors macrumors bot

    MacRumors

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    Apple supplier Dialog Semiconductor reported on Monday that its projected sales for the fourth quarter of 2018 would be at the low end of its original target (via CNET).

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    The German chipmaker, whose partnership with Apple makes up around 75 percent of its revenue, said its preliminary revenue for Q4 2018 was approximately $431 million. That figure only just falls into the guidance range of $430 million to $470 million the company reported in October.

    The news comes just two weeks after Apple lowered its own revenue guidance by up to $9 billion for the first quarter of its 2019 fiscal year.

    Apple CEO Tim Cook offered up a number of explanations for the decline, including the timing of the iPhone XS, XS Max, and XR launch compared to the timing of the iPhone X launch last year, a slowing Chinese economy, and the company's $29 battery replacement program, all of which led to fewer iPhone upgrades than expected.

    Last October, Apple agreed to a business arrangement with Dialog to license its iPhone power management technology and transfer technical assets, in a deal worth $600 million. Dialog's shares rose as much as 34 percent on the news, their highest since 2002.

    As part of the agreement, Apple acquired some of the Anglo-German chipmaker's assets and 300 of its R&D staff, or around 16 percent of Dialog's workforce. The deal represents a huge investment for Apple, which will take over Dialog facilities in Italy, Germany, and the U.K., expanding its chip research and development significantly across Europe. Subject to regulatory approval, the deal is expected to close in the first half of 2019.

    The agreement followed a report earlier the same month claiming Apple would design its own power management chips as early as 2018, which came as a serious blow for Dialog, the exclusive designer of the current main power management chip for iPhone, iPad, and Apple Watch models.

    Dialog's shares initially dropped on news of today's revenue projection, but then climbed in German trading, according to the Financial Times. The company was recently up 2.5 percent, cutting its 12-month loss to roughly 10 percent, said the paper.

    Article Link: iPhone Chipmaker Dialog Reports Low Sales Projection for Fourth Quarter
     
  2. realeric macrumors 65816

    realeric

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    #2
    The only person who doesn’t know why is Mr Cook. Apple needs new CEO.
     
  3. SR 7 macrumors 6502

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    #3
    I need a new iPhone.
    I’m not buying one bc I’m not down to spend $1300 on an iPhone.

    That’s why sales are low. People like me that upgraded EVERY year aren’t willing to do that anymore.

    I upgrade once every 3 years now and if it’s not working well I still don’t upgrade.

    Cook is blinded by greed.
     
  4. Sasparilla macrumors 65816

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    #4
    Have to disagree. Peak smartphone sales were in 2016. Although delayed (Apple kept increasing their sales after that), that peak might have something to do with it. The smartphone market is saturated and people are hanging onto them longer - just as occured in the PC market years ago.

    The CEO doesn't have anything to do with that.

    The Xr ($749) is $50 cheaper than the 8 Plus was last year. Why the $1300?
     
  5. maflynn Moderator

    maflynn

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    #5
    I think Cook's hubris and misjudging the iPhone's price elasticity (people are less and less willing to spend > 1,000 for a phone every year), is catching up to him. They were all in on the iDevices to the detriment of the Mac line that they're scrambling now to roll out new machines, yet marketshare is decreasing in that sector for them as well.
     
  6. T'hain Esh Kelch macrumors 601

    T'hain Esh Kelch

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    #6
    Indeed, and so far all indications say that there's no loss in income in most of Apples markets - Except China, which is a quite unique market at the moment, due to political unrest and local nationalism.

    They already know that. They even spend time explaining that in their latest keynote.

    People buy phones less often, so the solution is to increase the price of the phones, ending in the same economical outcome.
     
  7. Amacfa macrumors 68000

    Amacfa

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    #7
    And you are blinded by rage. I’m pretty sure they sell iPhones brand new for $750 and $500 price points.

    Oh wait you want the newest, best iPhone at rock bottom prices lol
    --- Post Merged, Jan 14, 2019 ---
    Because he would rather lie to help prove his point
     
  8. Spock macrumors 68000

    Spock

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    I don’t think Tim needs to go, I think they just need a new sales strategy. I think that they should revamp the entire product line every year and immediately discontinue previous models. I think Apple should stick with 4 models of iPhone. iPhone SE2, iPhone XR, iPhone XS and iPhone XS Max. Price that SE2 at $599. After a year, sell the previous models to mobile carriers at a discount and update all 4 phones at once.
     
  9. Relentless Power, Jan 14, 2019
    Last edited: Jan 14, 2019

    Relentless Power macrumors Penryn

    Relentless Power

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    #9
    The XS price points for the iPhones are certainly becoming unattainable for some, but what about the rest of smart phones that are verging easily on a $1000 benchmark as well? If you look at the smart phone market as a whole, it’s not just the iPhone struggling, it’s also Samsung included. This last year was a wake up call for Apple, realizing that not also China is struggling in their commerce with expensive phones, but the rest of the smart phone market is saturated where they don’t see the need to upgrade to a $1000 smart phone when their current smart phone works as intended. That’s why Apple is going to have to revamp their pricing structure. But, does Tim Cook ‘need to go’? Absolutely not, he still has driven Apple with plenty of success, but Apple needs to make some changes accordingly to meet the consumer market.
     
  10. maflynn Moderator

    maflynn

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    I think that move is purely short term, yse they're making profits, but at the expense of future sales. They can't keep raising the price to make up for less units sold, and that's my point. They misjudged the price elasticity, more so in other countries. They're wanting to sell phones in india but near the same price point, yet few people are buying them, because many people just don't have that much discretionary income to justify that high price.
     
  11. pika2000 macrumors 601

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    #11
    1. iPhone XR starts at $749. iPhone XS starts at $999. Not sure who forced you to buy $1300 iPhone.

    2. If you upgraded every year, you would recoup the cost by selling or trading in your previous phone. Or simply sign up for the iPhone upgrade program.

    3. Upgrading every 2 to 3 years is what normal people are doing anyway. Apple has been updating their iPhone lineup to match the typical 2 years upgrade cycle. With Apple itself promoting how they still support the iPhone 5S with iOS 12, that cycle only gets longer.

    You know who are the greedy ones? Google and Samsung, for selling phones as expensive as iPhones, yet only support them for 2 to 3 years at best.
     
  12. dominiongamma macrumors 68000

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    Along with Apple defenders because they keep buying over priced products
     
  13. TMRJIJ macrumors 68040

    TMRJIJ

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    #13
    It was bound to happen. The smartphone market has been more and more saturated. Raising the prices isn’t going to fix their revenue problems. They need something that’s truly going to convince people to drop their perfectly capable iPhone 7* for newer.
    It’s not just Apple that needs to do this either.
     
  14. Count Blah macrumors 68040

    Count Blah

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    #14
    Because the poster doesn’t want something that barely above 720p resolution? Just a guess
     
  15. Oldfash33 macrumors regular

    Oldfash33

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    Just swapped my 7+ through Apple using AppleCare. Could have easily upgraded but more then happy with the 7+
     
  16. Scottsoapbox macrumors 6502a

    Scottsoapbox

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    #16
    A) The CEO takes credit when things are good that are beyond their control so it's fair that the reverse is true.

    B) Cook makes millions and millions of dollars so he should be held to a vey high standard. Including looking for additional revenue sources beyond the iPhone.

    If the CEO doesn't matter, let's pay some random MBA $100K to keep the seat warm and pass the savings onto the shareholders.
     
  17. LovingTeddy macrumors 68000

    LovingTeddy

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    #17
    What are you talking about. Pixel 3 starts 999 in Canada and offer far better spec than XR. Yet XR starts 1029 in Canada where XS starts 1379 in Canada. Whole 380 dollars more than Pixel 3.

    Pixel 3 XL starts 1129 and XS Max starts 1519, 390 dollars less than XS.

    So, no. Google does not charge as much as Apple.

    About Samsung. You can pick up S9 for significant less now. And Samsung offers better speced phone for much less than XR.

    The thing is Apple could only go so far on price increase until a point where people no longer buy their phone anymore.

    iPhone price is outrages in Canada right now. XR starts at 1029 and XS starts 1379 and Max starts 1519 before tax. You really wondering why lesser people upgrade?
     
  18. pika2000 macrumors 601

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    #18
    Pixel 3: $999 CAD for 3 years of updates -> 91cents per day
    iPhone XR: $1029 CAD for 5 years of updates -> 56cents per day

    No matter how you look at it, iPhones offer better bang for the buck if you look at dollar value.
    For Android, I'd rather get a Pocofone for $300 USD, better bang for the buck than Google/Samsung. Why pay much more $$$ for the same SD845?
     
  19. LovingTeddy macrumors 68000

    LovingTeddy

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    #19
    Why are you comparing Pixel 3 with XR? It is not directly comparable. Pixel 3 should be directly compared with XS.

    Pixel 3 is the smaller offer of Google’s flagship phone. XS is the smaller offer of Apple’s flagship phone.

    XR in my opinion is more like phone for people wants most XS features but won’t shell out for more. Apple is filling out the price gap between this XR and XS.

    And your way of calculating is wrong. My old Nexus 5X is still working, I am perfect fine with the daily driviers. You are assuming that once the updates stops, phone suddenly stops working. Which is way off.

    And you are correct. Most midrange Android phone offers better value. I also will not pick up Pixel 3. I would rather go with OnePlus 6T instead.
     
  20. pika2000 macrumors 601

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    #20
    1. Fine
    Pixel 3: $999 CAD for 3 years of updates -> 91cents per day
    iPhone XS: $1379 CAD for 5 years of updates -> 76cents per day.
    Happy?

    2. Only because when you are starting to put numbers into the value of an item, there has to be a benchmark. You cannot just use mere spec to compare Android device and iPhone as both are not even in the same ecosystem. By using supported life of the device by each company, at least the value can be calculated on an equal basis. Both are flagships, fair game.

    3. Then we have nothing more to argue, other than your choice of OnePlus 6T, that imo it is still an overpriced phone. Why pay that much when the Pocofone F1 has the same flagship chipset, runs the same apps, has a headphone jack, and can be had for less? :p
     

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19 January 14, 2019