Same was said about following up iPhone 5S, 5, 4S, etc. sales, yet they still increase YoY with every launch.
Pegatron Reportedly Boosting iPhone 6 Production, Adding iPhone 6 Plus to Meet Strong Demand
- Thread starter MacRumors
- Start date
- Sort by reaction score
Same was said about following up iPhone 5S, 5, 4S, etc. sales, yet they still increase YoY with every launch.
HobeSoundDarryl
macrumors G5
That's a good start. How about all variants of "99% don't want..." and "one handed use"?
And I'm still looking for people buying or wearing pants with over-sized pockets and/or man purses
ToroidalZeus
macrumors 68020
This is different.
Tim Cook cost Apple BILLIONS of dollars by releasing the iPhone 6 and 6 Plus at the same time--instead of delaying the 6 Plus until next year--which also massively inflated sales this year.
Now that people got the big screens, the KEY selling point is gone.
Furthermore with carriers phasing out subsidies for financing installment plans, individuals will be much more hesitant to upgrade in the future when they start thinking about their monthly service price increase.
Look at the iPad sales, it's been declining for the last 3(?) quarters now.
Look at Samsung, they inflated their sales by releasing large screen devices and now they have the issue of sustaining year over year growth.
That is why they save the release of theWatch for next year then
The Internet people want sarcasm spelled out. /s
Apple Watch = Apple Failure; don't expect iPhone or iPad or even iPod-esq sales from that device.
Last edited:
Glideslope
macrumors G3
Yup, mine still has around 2 weeks till dispatch. Why they didn't organise this boost in production with Pegatron earlier is weird
Because ramping up takes time. IMO, Apple was seriously caught off guard by the demand for the 6+. I doubt they expected it to kill the Galaxy 5. However, the numbers do not lie. The number of iPhones sold globally over the next 2 Quarters will be a number many will not be prepared for.
cocky jeremy
macrumors 604
iPad sales are irrelevant when it comes to smartphone trends. The tablet market by nature is looking to have matured and becoming more of an item that consumers upgrade every 2-3 years instead of every year. Add to the fact that it's far less essential than a phone and I don't think Apple can do much to increase those sales at all. For example the iPad 2 came out in 2011 and many iPad users are still using one of those because they feel like it's good enough for their uses. While the iPhone 4S came out in 2011 and very few iPhone owners are still using the 4S.
I disagree about removing subsidies, that's actually helping Apple right now. It's one of the big reasons why they're selling so many 6/6+. We're seeing the effects of "$0 down" play out right now. Instead of waiting every two years like before, the hungry consumers who always want the latest device just trade their old ones in for "$0 down" on the new one next year. NEXT, JUMP, etc. have served to help Apple sell more iPhones than ever. It will probably be even more next year as AT&T converts more of their users over to NEXT and Sprint allegedly drops subsidies altogether.
I think you're overestimating how many Americans care about their monthly bills going up by $20 from upgrading their phones. American consumers are heavily addicted to buying things that they don't have to pay for right now and pay over time instead. The financing model is genius. Just watch how the carriers are selling more phones than ever as a result. "$0 right now" is all most people see, not "$25/month for 24 months". Then I noticed that with the 6/6+ launch all 4 carriers were grossly overpaying for old iPhones in order to get people to upgrade. Paying $200 for iPhone 4's and such which was more than double what those devices were worth. If we get similar promotions next year, Apple has nothing to worry about.
For example: If I'm paying $80/mo for my bill plus $25 for my phone, new iPhone comes out and I can either keep paying the $25 for my old phone for another year until it's paid off or trade old iPhone in and pay nothing today and just continue to pay $80/mo plus $25, most will choose to get the new phone.
Samsung is a different animal than Apple. They have no ecosystem in place, no control over their software (they're at the mercy of Google), and let's be honest here, other than creating the phablet market, they haven't brought any significant differentiating feature to the market. They have nothing to hold onto their users. Samsung users can easily go to HTC, Sony, LG, or Xiaomi for a similar or even superior experience. There's nothing unique to separate Samsung from those other companies. They got by in the past by using aggressive marketing to make them the default alternative to Apple's small screens and now that advantage has been taken away by Apple, they're on the fast track to becoming just another vendor in the sea of Android OEMs. Apple has shielded themselves from what's happening to Samsung with iOS and their ecosystem.
ToroidalZeus
macrumors 68020
And why is that? What is the difference between the iPhone and iPad market.
2 key points IMO.
First. Apple has given iPhone owners more substantial upgrades as compared to iPad owners. Now that the cat is out of the bag on screen screen, NFC is incorporated, the phone is so slim it's own camera can't fit inside the case, there just aren't that many upgrades Apple can give. So you'll see the iPhone market starting to resumable the iPad market over time.
Second. Cost. iPhone has been a [base] 200 dollar gadget for the last 6 years. But without subsidies the iPhone is a more expansive product then the iPad.
I agree with that point, except I would add that it's helping Apple right now when people are just saying "screw it, I'll upgrade, idc about an extra 30 dollars a month" but after a year or two of that along with less sustainable upgrades that opinion will change.
Furthermore for a family, it's not a 30 dollar consideration but a 100+ difference when upgrade 4+ phones.
And with Tim Cook at the helm Apple is resembling Samsung more and more each year.
TallManNY
macrumors 601
Got to quibble with a few of these statements. The Tablet market is not nearly mature. It just hasn't penetrated into price point or use factor where the majority of folks want one. But that will come. Yes, the tablets are lasting a long time. That doesn't mean the market is mature. It will be mature once everyone has at least one tablet at home and office folks will have one at work. That is where we are going to end up. Those tablets will probably last four years before getting replaced.
As for the 4s, since it is still a $300 phone used I think all of them that are operational are out there still being used. Maybe not by the original user or even the second user, but by someone. (Though I've still got a 5 that I need to get around to selling, so maybe I'm wrong.)
As for the American buyer, I think they sometimes get unfairly maligned. The smartphone is such a useful item that I really can't think of much after food, water, housing and electricity that you should spend your money on instead of a smartphone. It isn't a luxury. It is a super useful tool. And something fun. Everyone who is at least working class should carry a good smartphone. it seems to me to be a good use of resources. At least that is the way I find it.
Like Boars Head Ham says, "Compromise elsewhere." I'd rather eat out one less time per month and have a iPhone 6 than a 4s. It is worth it to me and seems like it should be worth it to anyone. It is money well spent in my opinion.
patent10021
macrumors 68040
I somehow don't think it's consumer demand. Well, technically yes it is but if there is only 1 iPhone and only 2 people want an iPhone that is demand. I think this is all done on purpose. Watch, all the sudden there will be stock everywhere for X-Mas.
Jeff Meredith
macrumors member
Get a 6 until 6+ is available. Apple Pay is a killer app.
My strategy was to get an iPhone 6 for myself until the 6+ become more available. I then plan on giving my 6 to one of my kids. Both the 6 and 6+ will be highly coveted because of the NFC/Apple Pay/Passbook and the better camera.
Too true. I think the killer app for iPhone 6/6+ is Apple Pay. Overtook all previous NFC transactions combined in three weeks. Already 1% of WholeFoods transactions.Because ramping up takes time. IMO, Apple was seriously caught off guard by the demand for the 6+. I doubt they expected it to kill the Galaxy 5. However, the numbers do not lie. The number of iPhones sold globally over the next 2 Quarters will be a number many will not be prepared for.
My strategy was to get an iPhone 6 for myself until the 6+ become more available. I then plan on giving my 6 to one of my kids. Both the 6 and 6+ will be highly coveted because of the NFC/Apple Pay/Passbook and the better camera.
I think it's mature in the sense that future growth from the segment is limited, at least compared to smartphones. Short of lowering the price, I don't see much that Apple can really do to accelerate growth. The iPad Air 2 is an amazing piece of technology, yet all it really offers is a slight performance boost over the original iPad Air. Plus we all know Apple will never compromise on the price of iPad in order to increase sales.
I agree with you about smartphones. That's why I think the 6S next year will again sell more than the previous iPhone. Smartphones have become essential tools whereas tablets have not. We use them all day everyday for the most part. The financing for phones isn't really a knock against the American consumer since from what I've seen the carriers allow it with 0% APR. That makes it pretty fair in my opinion. $25/mo at 0% APR is a steal. I personally told myself I'd keep my 5S and skip the 6 but when I saw the deals the carriers offered, I bought a used iPhone 4 on Craigslist for $50, traded it to my carrier for $200 and got my iPhone 6. It just made sense.
Apple's strategy of keeping the same form factor for 2 years is really ingenious and no other manufacturer is able to get away with it. I'm willing to bet they will be far more efficient in manufacturing the 6S next year and will be able to more easily meet demand, in turn allowing them to sell even more than they sold this year.
bpeeps
Suspended
I understand what the OP was attempting and if this were a post about early iPhone leaks, their comment would be more appropriate.
teknikal90
macrumors 68040
the fact that I, a long time apple fan, am considering getting a nexus device is a telling sign that apple no longer dazzles.
when i got my macbook pro, i can tell that its miles ahead of the competition.
same as when i got the ipod
and the first iphone
and the ipad
now?
which product line is apple actually the bleeding edge at?
Its apple watch which is still 6 months away from launch is already leapfrogged....
they need new blood
when i got my macbook pro, i can tell that its miles ahead of the competition.
same as when i got the ipod
and the first iphone
and the ipad
now?
which product line is apple actually the bleeding edge at?
Its apple watch which is still 6 months away from launch is already leapfrogged....
they need new blood
rGiskard
macrumors 68000
LOL, this has got to be snark. Big screens are the big selling point, but now that Apple released a big screen iPhone, that selling point is gone?
So you would have Apple let Android dominate the largest smartphone growth space for another year, so umm, why exactly? So Apple could surrender even more of the smartphone market to Android?
rGiskard
macrumors 68000
Apple rarely sell bleeding edge hardware. I think the new dynamic is due to Apple finally having a competitor that doesn't suck. Windows was so atrocious for so long, but now we have Android, which is far beyond what Windows was. Actually when I'm using my Android tablet it feels more like a Mac to me than iOS devices. It's that good.
When has Apple ever had a competitor as good as Google?
----------
NAND type isn't the problem, it's either a software/firmware problem or a NAND controller issue.
TLC NAND endurance could be a problem if you keep your device for 5 years and fill it up with video every day, removing the recorded video every night. It's a valid use scenario but extremely rare.
ToroidalZeus
macrumors 68020
LOL, this has got to be snark. Big screens are the big selling point, but now that Apple released a big screen iPhone, that selling point is gone?
So you would have Apple let Android dominate the largest smartphone growth space for another year, so umm, why exactly? So Apple could surrender even more of the smartphone market to Android?
No, what would have happened is a lot of people would have got the iPhone 6 this year then next year (or two) would have upgraded to the 6+. Apple would make more profit because people would upgrade twice and year over year growth would have more stable.
Instead Tim Cook has over delivered this year and sales are through the roof but it'll cost them in the long run when year over year growth is just hard to maintain and of course when people choose to keep these iPhones longer then the previous gen and the future iPhone market starts resembling the iPad.
Look at Steve Job, he was an expert on releasing just enough features that would get people to upgrade yet hold enough back to stimulate future sales. (cough iPhone 4/4s 3.5" screen)
rGiskard
macrumors 68000
No, what would have happened is more iOS users would have bailed to Android for larger devices, and many would have been gone for good. Large smartphones are the fastest growing segment of smartphones and if Cook waited another year to offer one he should have been FIRED with extreme prejudice.
I do agree that it would have been better to release 4.7" one year and then add a 5.5" model the next year, but that train left the station with the iPhone 5. Hard to blame Cook for that one, since the planning would have taken place when Jobs was dying or had just died and Apple's management team were in a bit of disarray.
Also, keep in mind that you don't know what Apple have planned for the iPhone 7. It very well could be that they had to release the 6+ this year for some fantastic innovation next year.
ToroidalZeus
macrumors 68020
Nah, from the rumors and the supply issues for the iPhone 6 Plus it's obvious it was a last minute decision to introduce it.
I'm sure Apples board was telling Tim Cook exactly what you said in the first paragraph and that's exactly why he screwed up hard. Steve Jobs resisted the pressure while Tim Cook has been giving in at every turn (e.g. apologize for Apple Maps, talking about how apple's pipeline is "chock full," prematurely announcing the Apple Watch, etc.)
So to answer your first paragraph. Some iOS users would have jumped to the Android Phablet market but the majority would have been happy with the iPhone 6 and then a year or two later got the 6+
My guess is Apple has a design team that works on nothing but the newest iPhone and another team that works on refining the current design (S-team). So Steve Jobs would have know about the iPhone 5 since it was released only a year after his death. 6 and 6 Plus are the first true iPhones under Tim Cook and he just gave wayy too many upgrades this year. I highly doubt he will be able to follow through and keep making as significant changes in the future: look at iPad market.
ProfessorHenry
macrumors regular
I read 'Pentagon' - couldn't understand what's going on...
rGiskard
macrumors 68000
Jobs probably knew about the 5 but he was not contributing much to Apple at that time. My suspicion based on reading a few biographies and reports of Jobs and Apple is that for the last year or so of Jobs life, he wouldn't let anyone else at Apple make big decisions yet he was not well enough to make them either, at least not with his previous level of insight.
So we have about a year-long leadership vacuum at Apple that accounts for the lack of pacing in iPhone design progress between the 4S and the 6+.
Could be wrong, that's just my best guess based on the stuff I've read.
Keirasplace
macrumors 601
Yup, mine still has around 2 weeks till dispatch. Why they didn't organise this boost in production with Pegatron earlier is weird
They already did (it is not the first news about increased production, remember they had planned for 80M phones sold pre-Christmas)... But it is still seemingly not enough (possibly due to China sales),
They do need staff to be hired FIRST and possibly even trained before being plopped on the line.
They also need to be able to ramp up the production of all the other parts coming into Pegatron, which is not a given since some are probably not labor intensive. They are simply limited by the current production process with the current equipment.
If they sell 100M Iphones in 4 months... That's a hell of a lot of phone and 25B in profits!!
----------
The biggest vaccuum was in IOS from 3 to 7. But, there seems to have been some slack in Iphone design pre 5S. The 5S was the start of the ramp-up with touch ID and the A7 being introduced no other phone maker have introduced something comparable yet).