Apple's Tim Cook says increasing pace of 'iPhone 8' leaks hurting sales
Some of Apple's problems with iPhone sales can be traced to more rapid leaks posted on news sites, CEO Tim Cook claimed during a quarterly results call on Tuesday.
"Earlier and much more frequent reports about future iPhones" are having an impact, Cook said in response to an analyst question. The executive didn't go into further detail.
Product rumors have been a factor in Apple sales for years, particularly with devices updated in annual cycles like the iPhone and iPad. People shopping for a smartphone in July, for instance, might consider holding off if a significant iPhone update is predicted for September. Hints of a modest update can prompt people to wait even longer, or simply buy an Android phone.
The issue may be exacerbated this year because of the alleged scale of Apple's plans. The "iPhone 8" is expected to be a major redesign, with a 5.8-inch OLED screen, a virtual home button, wireless charging, and 3D facial recognition and/or iris scanning.
Associated rumors go back as far as 2015 and have only intensified in recent months as the company approaches a crucial summer deadline for mass production. Supposed schematics and manufacturing molds may even be offering a glimpse at the product's final design, such as its vertically-aligned dual-lens camera.
In March-quarter results announced on Tuesday, iPhone sales fell year-over-year from 51.2 million to 50.8 million. It could be that the public sees the iPhone 7 as an "evolutionary" update like the iPhone 6s, making the "8" more attractive.
"Earlier and much more frequent reports about future iPhones" are having an impact, Cook said in response to an analyst question. The executive didn't go into further detail.
Product rumors have been a factor in Apple sales for years, particularly with devices updated in annual cycles like the iPhone and iPad. People shopping for a smartphone in July, for instance, might consider holding off if a significant iPhone update is predicted for September. Hints of a modest update can prompt people to wait even longer, or simply buy an Android phone.
The issue may be exacerbated this year because of the alleged scale of Apple's plans. The "iPhone 8" is expected to be a major redesign, with a 5.8-inch OLED screen, a virtual home button, wireless charging, and 3D facial recognition and/or iris scanning.
Associated rumors go back as far as 2015 and have only intensified in recent months as the company approaches a crucial summer deadline for mass production. Supposed schematics and manufacturing molds may even be offering a glimpse at the product's final design, such as its vertically-aligned dual-lens camera.
In March-quarter results announced on Tuesday, iPhone sales fell year-over-year from 51.2 million to 50.8 million. It could be that the public sees the iPhone 7 as an "evolutionary" update like the iPhone 6s, making the "8" more attractive.
Comments
1. sales delay when everyone buying at the same time
2. less sales of the current iPhone
3. going for alternative (Samsung) when they can't get the new iPhone or when they read "negative" reviews from bias critics.
Anyone that owns or has owned and iPhone knows new phones are coming in the fall. Sales are always going to drop but in
particular when we know a new form factor is coming. I almost upgraded my 6s to a 7 and then said "I may as well wait for the 8"
So nothing to worry about.
It's called the Osborne effect, and it could explain an even larger dip than the current decline.
Those old enough to remember the Osborne computer company may remember how their downfall was assisted, not just by competition disruption, but by dealers cancelling their orders for the current generation computer after having the next-generation model pre-promoted to them.
Hence it's also a logical conclusion - if the next generation product is revealed to be a significant upgrade (instead of just being the more modest -S changes), then consumers will naturally hold back their purchases. The difference is waiting a few months, instead of more than a year.
Certainly there may be other contributory reasons, such as the product maturity and competitors producing visually similar devices - but those would be minor factors by comparison. The growing ASP of the device could be an indication of the above, or a byproduct of long-held resistance from countries such as India and Indonesia. (However the SE model is due for sale on both of these countries soon, so we're likely to see an uptick again.)
I think this is a result of Apple's decision of creating a new form factor period from every two year to every three year.
Personally I was less excited about iPhone 7 introduction compared to iPhone 6's. Even though spec wise iPhone 7 is a superior phone, design wise it looks just as good iPhone 6 not superior.
I am not convinced the explanation about people buys android phones because of the rumors. I believe those people are in minority and they just want to have the latest not the greatest phone.
I was very excited to watch samsung's s8's introduction because of the design but it didn't make me buy one of them. That phone is not a complete product. The biggest issue is aspect ratio of its screen. Most of the youtube videos cannot take advantage of the screen without sacrificing top and bottom crops.
I will wait for the new design of iPhone 8 to upgrade my iPhone 6.
That's the difference between Apple and those FANG stocks. Those FANG stocks have revenue coming in every quarter and they're also managing to increase revenue every quarter whereas Apple has weak quarters because they're only relying on the iPhone. There doesn't seem to be any other major bright spots for Apple except the iPhone. With all that reserve cash, Apple should easily be able to find some business that can boost revenue every quarter. Apple simply isn't aggressive enough or hungry enough as a company when they certainly have the means to be.