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Kuo: Apple Watch Series 4 Pre-Orders Above Expectations, iPhone XS Seeing Lackluster Demand

I'm in the iPhone upgrade program, and I would have to pay an early renewal (remainder of the 12 months loan) in order to upgrade on launch day. It's so marginal, it's not worth the extra money. I'm halfway considering just waiting for next year.
 
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longhorn2004 said:
So the Xs is not selling as hoped. Watch Best Buy and others offer $200-250 gift cards toward buying a Xs this Christmas. If so then I am in.
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This is what my husband is waiting on. He’s finally upgrading his 6 and is patiently waiting for a gift card deal on the Xs before he buys.
 
PickUrPoison said:
Well it’s a $350 phone, and your 30-35% figure references gross margin, which only includes cost of components, assembly and certain expenses directly related to manufacturing. Notably it does not include selling expenses, general operating expenses and R&D costs. Or taxes.

After all those expenses are taken into account, Apple nets about 22% of selling price (most recent quarter). That’s an average, and there’s compression at the low end. So expensive products in the iPhone lineup like the XS will contribute more than the average, maybe 30%. But for a low priced product like the SE it might be 10-15%, or even lower.

Looking at the income statement shows what happens to revenue as it progressed to the bottom line.

(Keep in mind I’m not an accountant; there are some in the forum so pls correct my understanding as needed!)

View attachment 782535
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Thanks. But it was a $399 and $499 phone at launch, so that would be in the 40-75 range. And the original point wasn't so much about SE specifically, but rather an updated smaller option which with todays pricing might be $600-$650. Even low-ish total margin on that could be $100.
 
manu chao said:
Because the majority of the top-of-the-line iPhone buyers are yearly upgraders. Sure.

Do we need this discussion every second year? Yearly upgraders probably represent only about 10% of iPhone sales. Meaning only 10% of potential Xs buyers will actually be turned off by the only modest updates compared to the iPhone X. The iPhone Xs is as appealing to iPhone 6s and 7 owners today as the iPhone X was to iPhone 6 and 6s owners last year. The major difference this year is the existence of the iPhone Xr which will suck in a lot of iPhone 6s and 7 owners, plus to lesser degree the Xs Max that will appeal to the iPhone 6s & 7 Plus owners (the X last year appealed to both non-plus and Plus owners).
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Source?
 
The Game 161 said:
It’s an iPhone not an android
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Android gets you a free tv

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Makes sense, I mean the Xs is more expensive and smaller than then the Xr. Apple oversold the Xr to make it not seem inferior and instead made it sound very comparable to the OLED versions. Apple also should've followed the small-medium-large formula over the confusing medium-small-large.
 
naturalstar said:
This is what my husband is waiting on. He’s finally upgrading his 6 and is patiently waiting for a gift card deal on the Xs before he buys.
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Smart man, I got a $200 GC from Best Buy on I bought my Iphone 6 plus. I sat out the Iphone X cycle and Apple has designed the Xr for people like me knowing this year will be a super cycle for older Iphone customers. With that said, if Apple needs to move some Xs s ( from the looks of it, even with lower production, inventory may be piling up) this Christmas I am in.
 
AgentAnonymous said:
I am glad I waited. The new models are absolute monsters. We're talking double the GPU performance. Also the X is too small for my tastes, so the 6.5 inch size screen size and significantly longer battery life will be glorious.

The XS is the phone the X should've been.
[doublepost=1537166245][/doublepost]
It's one of the most significant upgrades in iPhone history. With the 7nm we're seeing 30% higher CPU performance and double (!!) the GPU performance. Add to that noticeably better battery life, noticeably better camera, faster FaceID, dual sim, better water proofing, new modem technology, and 6.5 inch version of the new design.

By the way, it's not that the XS isn't in demand but rather that people are opting for the XS Max.
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This is false. The increase is 10-15% for CPU, half of what you stated. The GPU is not double, only 50% better, again, half of what you stated. The better battery life is half an hour better, that is not "noticeably better." The new camera tricks has been available in an app since the X. Face ID is faster but doesn't work horizontal. Dual Sim is going to cater to what, 5%?, of people. Seems like a non update to me. XS MAX is what I am getting because the XS sucks for that price compared to my current X.
 
cmaier said:
Or the facts show that Apple consistently releases products that detract from sales of its other products. The XR will detract from the XS. The new iPad detracts from the iPad Pro sales. The iPhone cannibalizes the iPod, their cash cow at the time.

And maybe logic dictates that in an industry with numerous competitors, you should make new products that customers want even if that means you will sell fewer of your existing products, because otherwise your competitors will.
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exactly. if something is going to 'cannabalize' your sales it's better that it's your own product. making $300 less because someone bought an iPad 2018 rather than a 10.5 iPad Pro might suck but $329 is better than making $0 because someone bought say a Galaxy
 
jtinch said:
Going from a 7+ to the Xs, looking forward to one handed use again (without the phone nearly slipping out of my hands). As for notch removal, you may be waiting quite some time. I hope I'm wrong though.
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You’re going to be quite pleased with your upgrade
 
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Seems like the XR is the phone that will sell the most. I'm getting the XS as I want the best as my daily driver and I don't want to pocket the Max. Also I like being able to reach all parts of the phone's screen with one hand. Even with my larger than normal hands (see my user name), I can't do that on the Max.
But folks like the big phones. Hope Apple makes a smaller phone like the SE again though. Even if it is something that only 5% of folks want, that is still a large enough market to go after. Maybe not yearly, but putting something small out every three years would probably be a good idea.
 
longhorn2004 said:
So the Xs is not selling as hoped. Watch Best Buy and others offer $200-250 gift cards toward buying a Xs this Christmas. If so then I am in.
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Ha! Fat freaking chance. As a fan of BB (I like that they are still doing the brick and mortar thing) you ALWAYS have to take their specials with a grain of salt and a keen eye. Everytime I have chased one down in the past it was revealed that there are all sorts of conditions, extra lines of service, and so on that almost completely evaporates those specials. Apple isn't providing the phones to BB at any big discount, BB is selling Apple to get people into their stores. No way is BB going to take a haircut, let alone to the tune of $200, to move Apple's products. Rarely is their a 'free lunch' in current Apple products.
 
manu chao said:
I know the feeling (I've kept my first Nikon SLR). However, money-wise it would be smart to sell every product as soon as possible and then re-buy a copy once its used price bottoms out. But I guess this doesn't work out quite as well emotionally.
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If I know for sure I want to keep an original, I’m not going to sell and re-buy later, even if it does net me a few bucks. Don’t need the money that bad!
 
naturalstar said:
This is what my husband is waiting on. He’s finally upgrading his 6 and is patiently waiting for a gift card deal on the Xs before he buys.
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By the time there is a "deal", you'll be looking at the calendar and thinking, "But a new phone is about to be announced"
 
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My watch should arrive between october 15 and 22 , usually thoses dates are acurates , or is there a chance to get it earlier?
 
The original iPhone cost $499/599. UAnnual upgrades are no longer include "must-have" features, and at +/- $1000 consumers are simply holding on to their phones longer -- and enjoying at least a full year of lower cellular costs.
 
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