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Report: iPhone Sales Fail Triggered “Fire Drill” at Apple
Posted on 12/4/18 at 6:07 pm
Posted on 12/4/18 at 6:07 pm
quote:
A new report details the emergency response within Apple when it became clear that its new iPhones were not selling as well as expected.
“Company executives moved some marketing staff from other projects to work on bolstering sales of the latest handsets in October, about a month after the iPhone XS went on sale and in the days around the launch of the iPhone XR, according to a person familiar with the situation,” a new Bloomberg report explains.
That source referred to the reaction within Apple as a “fire drill,” and said that it led quickly to strategy changes. Among the changes, Apple is now offering its customers double the normal amount on trade-in devices for those who buy a new iPhone. This effectively lowers the price of a new iPhone … without Apple having to go through the embarrassment of actually lowering the price.
Bloomberg notes that Apple on Sunday actually went so far as to denote a starting price of “$449*” for the iPhone XR on its website. The iPhone XR actually starts at $749.
But as the footnote at the bottom of the site explains, ” $449 reflects [the] price of iPhone XR after trade-in of iPhone 7 Plus … Trade-in values vary based on the condition, year, and configuration of your trade-in device, and may also vary between online and in-store trade-in.”
This change, which Apple’s site says is for a limited time, suggests that Apple’s strategy of raising prices to make up for diminished sales—what I called Apple Jacked—is not working. And the timing of the “fire drill” at Apple is interesting: In the one month between the launches of the iPhone XS/XS Max and iPhone XR, Apple suddenly discovered that things were going south. And that the iPhone XR was not going to solve the problem.
LINK
Posted on 12/4/18 at 6:40 pm to Street Hawk
Who would have thought that the death of Steve Jobs would kill an entire companies creativity and development.
Posted on 12/4/18 at 8:00 pm to Street Hawk
I started a thread on here several months ago about Apple and my concern about declining smartphone sales. The market is mature and there's very little compelling reasons to upgrade every two years other than performance and declining battery life.
I think about 70% of their revenue comes from the iPhone.
It's still my largest holding and I've given back some gains but I'll likely consider locking in some profits on the next bounce. I don't plan to sell it all.
I think about 70% of their revenue comes from the iPhone.
It's still my largest holding and I've given back some gains but I'll likely consider locking in some profits on the next bounce. I don't plan to sell it all.
Posted on 12/5/18 at 1:29 pm to Street Hawk
Cell carriers getting away from the model of subsidizing the phone's pricing in exchange for 2 year contracts is probably one of (if not the biggest) factor in iPhone sales slowing down.
$299 or $399 iPhone (with 2 year contract) sounds a lot more appealing than $899 for a phone.
I used to pay about $90/month for 1 line and buying the phone at a subsidized price in exchange for a 2 year contract. Now I'm at about $95/month but that includes about $35/month of AT&T "financing" the phone for me interest free. So it works out cheaper since I didn't have to come out of pocket $300-400 when I got the phone.
Carriers built the cost of subsidizing the phone into their monthly plan rates. But now that the FULL price of the phone is staring consumers in the face, people aren't upgrading every 2 years anymore. Apple not really having many groundbreaking must-have features either isn't helping.
$299 or $399 iPhone (with 2 year contract) sounds a lot more appealing than $899 for a phone.
I used to pay about $90/month for 1 line and buying the phone at a subsidized price in exchange for a 2 year contract. Now I'm at about $95/month but that includes about $35/month of AT&T "financing" the phone for me interest free. So it works out cheaper since I didn't have to come out of pocket $300-400 when I got the phone.
Carriers built the cost of subsidizing the phone into their monthly plan rates. But now that the FULL price of the phone is staring consumers in the face, people aren't upgrading every 2 years anymore. Apple not really having many groundbreaking must-have features either isn't helping.
Posted on 12/5/18 at 2:27 pm to Street Hawk
Who'd have thought that people wouldnt line up every single day to buy $1000 phones?
Posted on 12/6/18 at 9:46 am to Street Hawk
Apple is acting like it’s some big deal dealing with creativity? LOL
You priced your phone at $1000. No one wants to pay that for a phone. It’s not worth it.
You priced your phone at $1000. No one wants to pay that for a phone. It’s not worth it.
Posted on 1/30/19 at 10:31 am to Street Hawk
I think Apple is moving more toward subscription services. (iPod sales are certainly not what they used to be are they?)
I think they are going to do a lot more in the health area with their watches and phones. It would not surprise me that they actually market data to health insurance companies somehow. Your health insurer may give you a discount if you wear an Apple watch that transmit data on the EKG feature from time to time to your doctor or something like that.
I think they are still ahead of the curve in their thinking.
People just aren't changing phones as often as they used too.
I think they are going to do a lot more in the health area with their watches and phones. It would not surprise me that they actually market data to health insurance companies somehow. Your health insurer may give you a discount if you wear an Apple watch that transmit data on the EKG feature from time to time to your doctor or something like that.
I think they are still ahead of the curve in their thinking.
People just aren't changing phones as often as they used too.
This post was edited on 1/30/19 at 10:34 am
Posted on 11/8/19 at 6:55 am to Street Hawk
Seems every time someone here proclaims the decline of Apple Apple proceeds to double in value over the next year.
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