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.
Ming-Chi Kuo Says 'Worst Soon Over' in Regards to Slowing iPhone Sales
- Thread starter MacRumors
- Start date
- Sort by reaction score
Nope, he doesn’t know actually, he’s an analyst, he doesn’t predict sales and when he has done so before he’s often been wrong!
So I don’t believe for a second anything he claims about Apple’s sales is more valid then what I can claim.
That's okay. Apple can wait people like you out. Within a year or so, you'll need to replace the battery in that aging iPhone. Maybe YOU will be willing to pay the price to replace it, but most won't. They'll buy a new iPhone at the higher price. Maybe there'll be an update to iOS that will bog down your iPhone, causing you to upgrade it.
The ecosystem is an unrelenting master. People in it can resist a while, but not for long.
As long as people feel that they can't leave, Apple has no incentive to do anything different.
Well given apple no longer report sales these analyst is you can go by for what they have really sold.
That’s what I’m afraid of. The only good side to Apple is that we do our own repairs. As long as parts are available we are good for a few more years. Except for our 2013 iMac’s lcd (which is not really available other than used and/or super expensive) we’ve been lucky by being able to get parts from ebay, owc, or ifixit.
I've never been able to use the keyboard on any phone with two thumbs. I have no idea how peole do it. When I try I make infinite mistakes.
[doublepost=1548710357][/doublepost]
Yeah, I realize the Australian dollar in not the same as the American dollar. Not sure how you've interpreted otherwise. Our dollar has weakened against the American dollar, hence things are costing more. Currently $1 USD buys $1.39 AUD ... or $1 AUD buys $.61 USD.
Well the revenue is higher simply because prices are higher. But that is not sustainable.
I didn't said you claimed such a thing, I was just pointing out how ambiguous that claim from Apple was. Basically a weak excuse.
If Tim would have said that their market share is noticeably up in those countries it would have had a much much stronger impact.
Actually they obviously didn't. And the decline was not exclusive to China either.
Anyway there's no point in wasting my time with you.
I said their price strategy is not sustainable long term. How am I wrong about that? Because they increased their revenue in a few countries in a 3 month span? LoL does 1 quarter = long term? That's new.
Last edited:
The decline was over 100% a result of China, from Apple. Sure, some other countries might have struggled, but again, if not for China, NO guidance change. The countries doing well would have offset that loss, by definition of the "over 100%" language we got from Apple, who can't lie to investors.
The price increase happened in November of 2017 with the iPhone X, so more like 15 months. The higher prices aren't an issue anywhere except China and a few emerging markets. Again, they set records in many countries, including a huge one in the US.
Cook did say devices increased 100M to 1.4B. That is huge.
You don't have any idea if the pricing model is sustainable. IF it's not, they can reduce prices quickly. It's the easiest thing to do in business. It should tell you a lot that they haven't reduced prices in any market except some reports from China and Japan.
People like you struggle with the idea that China struggling 1 quarter means the entire pricing model is flawed. That's not how this works and that's not even what the data says.
Negative, it's one of the harder things to do in business. A small reduction in price can lead to a drastic reduction in profit.
I didn't say the results would be good. I said it can be done easily. Why do you think Apple HASN'T reduced prices in any market besides China and maybe Japan? They don't need to and they don't want to. Many markets set records, IE, pricing wasn't a problem.
They need to fix China and that will basically fix the problem. Tough to do, but other companies reported far worse news than Apple in China. You see Nvidia? Sheesh...
This isn't Nvidia Rumors and one of my issues with your post is with the word 'easy'. A 10% price decrease can lead to a 50% drop or more in profits depending on the margin. And yes, that is exactly why Apple is very hesitant to drop prices, because it's not anywhere near an 'easy' solution or fix.
My other issue is you keep saying prices are not an issue.
These records that Apple set are due to a leap in the average selling price (ASP). An increase of $50 ($645 to $695) is a 7.8% increase. That increase would allow Apple to drop 5% in unit sales and still set records in both revenue and profit. But, obviously, those are not trends (increasing ASP, while unit sales decrease) Apple would welcome.
Apple is making the right business decisions in not reducing prices and hiding unit sales. But, those are short term solutions. The real test comes next.
I said the execution was easy, not necessarily the decision or the results you’ll have to live with.
Apple has demonstrated a world class ability to execute, so I’m going with them on the decisions they make. Literally, they know better than any of us because they are smarter and have more data to support their decisions.
I brought up other companies like Nvidia because they blamed China and their results were drastically worse, like Caterpillar and others.
Data says the pricing strategy is working just fine in most markets. Not China. They are fixing it.
No one said they set unit sales records. I said revenue records. However they achieve that is up to them. Don’t forget, the non iPhone businesses are growing at 19%, so some unit sales stagnation or decline is a given.
Apple is (I believe) correctly milking the iPhone by using its pricing power and any reduction in price across the board isn’t happening because it doesn’t need to and/or they are not willing to give up the margins. These things aren’t linear. Dropping the price 10% or even 30% might result in lower revenues and only marginally higher units.
Business isn’t easy, but Apple executed basically every quarter for about 40 straight quarters. They had a “bad” quarter and will have $84B in revenue and $20B in profit to show for it.
you make ZERO sense. I hope you aren't a business owner.
You'd be broke as ****.
Simple math.
If the phone was affordable he would upgrade. Say it was $800, he'd upgrade every 2 years. Thats $1600 in 2 years.
If the phone is $1300 he'll upgrade in 3-4 years "IF" that. You tell me WHICH option makes Apple more money.
Man I dunno how you use your phone but I have Raise to Wake on and by the time I look at my phone it’s unlocked EVERY TIME. If my fingers are wet or sticky I can still unlock my phone. I get way less rejections with Face ID than I did on any generation of iPhone 5S,6S,7+ or my wife’s 8.
I’m not sure what your doing looking at the time but I have only had the phone lock out once and that was when a friend was looking at it.
I find it much more useable for things than having to change my grip on the phone to place my finger back on the Touch ID sensor for passwords etc.
It’s just a better system; it disappears. Touch ID is cumbersome in comparison.
The iPhone 7 is perfectly capable phone and the A10 is faster than most android phones. However. when you can get a Galaxy S9 that has a better camera, twice the storage, faster CPU, retains the headphone jack, and an OLED screen for $549 it's difficult to pay $449 for device that is older than 2 years old.
Maybe difficult for you, but the vast majority of Apple customers aren’t interested in a Samsung S9, or any other Android phone for that matter. 90% of Apple buyers stay with Apple. They could be giving them away and I’d still have zero interest.
If apple had zero support for the $800 phone that would be the price. But throw on warranty, software the $1300 phone will make Apple more money.