Nikkei: Apple Told Suppliers to Cancel Plans for Additional iPhone XR Production Lines

[itsmilo]

Even tho I gave in and therefore am part of the problem, I wish for Apple to have a real flop on their hand sooner than later with the way their pricing is going. I am not even just talking about their devices itself. Even the prices of their accessories have gone through the roof. Who do they think they are trying to sell me an iPad sleeve for over 130€. Louis Vuitton?

 

[run1976]

That may be so in your case. But I do see a lot of you guys using iPhone 6 models and wanting to upgrade. I have been to a few apple stores and they are packed with people. I don't see the point of going to an Apple store - I just go there to see if it is busy, and it always is. I always buy online actually. But when the store is buzzing with people, you just know that Apple business is brisk! Selling like hotcakes as they say Worth upgrading just to get the latest cameras!

That is quite an ignorant post. I am on a X and have been upbuying more regularly in the past. It is just too expensive to justify constantly throwing more money at Apple. And anecdotal evidence tells you little about Apples success. Especially when you do not visit Apple stores outside the US.

 

[Joniz]

That may be so in your case. But I do see a lot of you guys using iPhone 6 models and wanting to upgrade. I have been to a few apple stores and they are packed with people. I don't see the point of going to an Apple store - I just go there to see if it is busy, and it always is. I always buy online actually. But when the store is buzzing with people, you just know that Apple business is brisk! Selling like hotcakes as they say Worth upgrading just to get the latest cameras!

People in stores does not necessarily mean sales, of phones or hotcakes. I’ve been to an Apple store many, many times, but bought something only one time. I think most people go in to look at and get their hands on the new items, to see how it feels. I also believe many of those same people will then leave the store saying, “It’s nice, but not really worth the price,” if they’re looking to buy a phone at all. Many will just be looking.

 

[R10k]

Loving the marketing armchair experts here.

I like the XR a lot. I don’t think it looks or feels cheap. Personally I would go for the dual lens after my iPhone 7 Plus, but I think the XR is a good phone for the money.

And for those whining about prices - just stop. Apple stuff has always had a premium pricetag. That’s the way they roll. If you can’t afford a XR, the 7 or 8 are great phones.

 

[Bazooka-joe]

We talk about concerns over pricing but if memory serves me right, the pricing for the original 8gb iphone back in 2007 was 599 dollars and it required a two year contract. So for a more powerful phone with many times more features is 749 dollars outright 11 years later such a big increase? Perhaps I am taking rubbish but 20% increase in price over 11 years for more functionality doesn't seem that great.

 

[BuddyTronic]

That is quite an ignorant post. I am on a X and have been upbuying more regularly in the past. It is just too expensive to justify constantly throwing more money at Apple. And anecdotal evidence tells you little about Apples success. Especially when you do not visit Apple stores outside the US.

I don't mean to come across as "ignorant" - but after seeing Nikkei be wrong for the third time here, I gotta once again point out how silly it is to listen to Nikkei.

I think Apple stores are universally busy - am I wrong? It's just a guess. But I bet on it.

What tells me most about the health of Apple's business is the several years of record breaking revenue, quarter by quarter. Another thing that tells me Apple is healthy is the cash they hold. Another thing is double digit growth of revenues in nearly every part of the business. Services up XX%. "Other" up XX% year over year over year.

It adds up to make Apple an unstoppable "recession proof" juggernaut.

 

[R10k]

I also believe many of those same people will then leave the store saying, “It’s nice, but not really worth the price,” if they’re looking to buy a phone at all. Many will just be looking.

Of course you know this how, exactly? Can’t wait to see your stats to back up your opinion, mr expert person.

 

[turbineseaplane]

Make an SE replacement please!

 

[BuddyTronic]

People in stores does not necessarily mean sales, of phones or hotcakes. I’ve been to an Apple store many, many times, but bought something only one time. I think most people go in to look at and get their hands on the new items, to see how it feels. I also believe many of those same people will then leave the store saying, “It’s nice, but not really worth the price,” if they’re looking to buy a phone at all. Many will just be looking.

That is quite possible. I am one of those guys. I rarely buy at the Apple store. But hang in there for 10 minutes and see how many transactions - it's a lot actually.

Check out what the "analysts" are disappointed at: Apple guidance for the Christmas Q1 quarter is $89B - $93B.... Apple guidance is for ANOTHER record quarter. But the "analysts" (who drive Hondas, not Lambo's I am pretty sure), are "disappointed" - (They are paid to be disappointed by they way, so they can keep their jobs I would bet).

So Apple guidance is for another record quarter coming up. To do that they have to sell something like 20 iPhones every second 24 hours a day for 90 days or so. (plus all the other revenue streams I guess - 40% is the other stuff) It's incredible. Don't lose sight of this. If you are talking Apple stock - this is the reason why they are ready to buy back about 80 more Billion dollars of their own stock - at a suddenly reduced price.

Someone should be trying to take Apple to the SEC for stock manipulation haha. Think about it. They love to have the stock at a lower price. Warren Buffet will hang for a while and buy back too - unless he wants to jump the gun and buy shares ahead of Apple's own blackout period today. Apple apparently can buy back shares tomorrow - but maybe they will not do so because of the "election". But none of these little things matters much in the long haul.

If the stores were vacant, THAT would be something to crow about. But they are not - business is brisk!

 

[Gudi]

Don't you feel Apple not reporting iPhone numbers is a slap in the face for developers? Surely they want to know the potential market size for their application.

Apple Now Has 1.3 Billion Active Devices Worldwide

Anything else you want to know?

 

[Glideslope]

I’m not shocked at all. Apples greed is out of control.

If one is heavy on AAPL pay close attention. Know where you got in, watch Warren Buffet carefully.

 

[Focusx0131]

I took a look at one of those in Best Buy yesterday as I’m looking to replace my 7Plus.

Meh. Maybe it was half the price I’d consider it.

Just felt and looked cheap.

For someone like my dad, he wouldn’t notice the resolution drop, but he would completely balk at the price.

That should be a $499 phone.

So what should the 7/8 and Plus series sell for? $200-300?

/s

 

[BuddyTronic]

If one is heavy on AAPL pay close attention. Know where you got in, watch Warren Buffet carefully.

Lol - I think many of us "got in" at a share price that is 2 splits away - 14 times less from a 2:1 and a 7:1 split. So when you paid $4.00 for a $200 share what does it really matter.

Warren Buffet will only be acquiring more shares, and he was late to the party. He should have been buying much earlier actually but claimed he did not understand "tech". He did understand Campbells Soup however, and big trains and stuff.

Know this - Apple has $80Billion left from it's April $100B buyback declaration. Tomorrow I believe their "blackout period" is finished, so they will then be allowed once again to buyback shares. I think they will! Do you?

 

[Remy149]

Hope this is a good indicator to Apple. Your phones are too expensive.
Just chill a bit with the prices will ya?

If this where an issue of the costs of phones then it wouldn’t be the cheaper app Jones they are cutting production down on. If anything this shows more costumers are opting for the more expensive devices

 

[npmacuser5]

It´s no real surprise though that initial sales of the XR are generally lower then the Xs. The Xr is positioned at another market of cheaper phones, aka people who buy them are not as tech savvy as the ones who buy the Xs. In essence the Xr is not a phone people buy at launch rather then strong sales throughout its lifecycle.

From this point forward we will no longer know the number of iPhones sold. Apple said they will not report the number of iPhones sold in future financial reports. Just like the Apple Watch.

 

[Remy149]

Well...if true, I hope Apple responds by releasing that smaller XR at a hundreds buck cheaper. Then we can get back to traditional iPhone pricing again.

So you want them to release smaller devices that most costumers don’t buy

 

[Mc0]

We can afford the phone but it’s just not worth it for me. The base model cost $999 in our country. It’s the same price as the iPhone XS in the US.

 

[BuddyTronic]

So what should the 7/8 and Plus series sell for? $200-300?

/s

Exactly - if you want that retail price maybe check out a HuWei.

Apple's cost (without taking into account research and development etc) is easy to calculate.

Take retail price and know that their margin is 38% and get a margin calculator and you can see what the lowest price of that piece of hardware can possibly be IF they decided to sell at no profit. If they sell lower, they definitely lose money.

So you get what you pay for and all the crying won't help to make the iPhone cheaper - it is very simple. People should get over it.

Additionally. These price complaints are really getting old. How much are people spending on their cell phone contracts? I know I pay close to $100 per month to have my cell phone running. Maybe some guys pay $50 per month? Anyways - that is at least $600 per year just for the service charges to have a phone number. So rationalize that it is a small price to pay to have the latest hardware when compare to the service cost.

If you bought a car worth $5000.00 and then realized you spend $4000.00 on gasoline per year, and $2000 for license and insurance, you might realize the same thing and pay to enjoy a better car at least. OR you might just try to improve your income to get out of that situation.

 

[Icaras]

So you want them to release smaller devices that most costumers don’t buy

Yes, you know, just like their doing now with the iPhone X/Xs?

 

[Remy149]

Make an iPhone XR mini and iPhone XS mini. Profit.

I don’t know why so many people on sites like this think most of the market actually wants smaller phones when Apple only started making larger devices because of market demand
[doublepost=1541433741][/doublepost]

Time for a small round-up:

STEVE JOBS ERA

iPhone > phenomenal success
iPhone 3G > phenomenal success
iPhone 4 > phenomenal success
iPhone 5 > phenomenal success

BOZO ERA

iPhone 6 > failed design, still semi-successful
iPhone 6s > failed design, for phablet niche market still semi-successful
iPhone SE > phenomenal success
iPhone 7 > failed design without innovation
iPhone 7s > failed design without innovation
iPhone SE refresh > phenomenal success
iPhone 8 > failed design without innovation
iPhone 8s > failed design without innovation
iPhone X > failed design, horrific costs, still semi-successful
iPhone X plus > failed design, horrific costs, for phablet niche market still semi-successful
iPhone Xs > failed design without innovation
iPhone Xs max > failed design without innovation

iPhone XR > failed design, wrong niche phablet market, horrific price




Apple did it all wrong. Tim Cook did it all wrong. Jony Ive did it all wrong.

Jobs early recipe for developing the iPhone was slight enlargement of the display with each version and improving overall design. Cook and Ive did improve nothing. they blatantly blew up the screen size in hope for more cash from the App store. There are people, who want giant phablets, there are even ones, who would love using an iPad pro to make calls.

But the vaaaaaast majority, especially men who don't carry men purses, want a SMALL phone in their front pockets. Easy as that. And screw Your App Store sales, Tim. I am not buying anything until You give me that small phone.


This would have never happened if Apple would not have changed from "Apple Computers Inc" to "Apple soldered computer parts Inc"...


Steve Jobs driving force was not greed but user experience and the sheer beauty of a product.


Steve would have never allowed this.

It’s very obvious which devices your biased to you really think the se was this huge success lol

 

[ValO]

Four of those iPhones models don't even exist!

Yes, and calling the se a great success is probably wrong, apple stopped/cancelled it. If it was a great success, apple would have made a successor.
But instead of the xr apple could have opted for a high end 5.2-5.3 inch x-model , with OLED, stainless steel and a single camera, 3gb ram, for around $799(the XSE?)and the regular xs for $949 and keep the xs max for $1099.

It would be easier for customers to keep track on all the models.

But about speculations about sale numbers going down: all analysts, etc will try to challenge apple and lure apple into giving sales numbers to prove these analysts are wrong.
See the game surrounding iPhone X sales numbers, apple usually doesn’ t break this down by model, but apple, by the negative publicity , felt forced to publically disclose that the iPhone X was the best selling iPhone .

The financial markets/analysts really want this numbers and will try to force Apple to say something about it.

 

[Techman82]

There's no point in this one or that one making excuses for poor iphone sales compared to previous years, it's the price people have to pay for a small evolution, no stand out or must have features of the current iPhones, the price of the new iPhones is definitely not worth it, is there really that much different experience from a 6/7/8, I do have a 8 plus but i can honestly say that i don't know anyone that would even consider giving €1250-1650 for a phone, i would feel a fool if i got a Xs and someone asked, what's that cost? It's simple, apple is ripping people off, apple has alot of mouths to feed, They've gotten too big, the love is fading and even the loyal customers are starting to feel and look silly defending apple's greed, the problem as well is alot of people have made money and careers out of apple, youtubers/techsites/accessories, and nearly all these are on apples side trying to convince you to buy but they won't buy themselves. Select youtubers will praise the new iPhone, no mention of the no dongle or fast charger, dare not go against apple, won't get invite next year, I don't even believe the sales of the x last year, anyone I've told what the x/xs/Xs max Costs, they just laughed, that's the truth.

 

[Icaras]

Make an iPhone XR mini and iPhone XS mini. Profit.

XR mini, yes.

As for the Xs, that IS the mini.

 

[Remy149]

Yes, you know, just like their doing now with the iPhone X/Xs?

The x and xs still are t small devices. The average consumer uses their phone as their primary or only computing device. If the market demanded smaller phones More manufacturers not just Apple would go out of there way to meet that demand.

 

[dspdoc]

Apple would do something stupid like halt production on what IMHO is the best iPhone they’ve released in ages. We have two of them and they are amazing. SMH