Apple’s US website earlier this week:
*PIC* Apple’s US website today: *PIC* Clearly Apple wants people to see XR $449 and XS $699. And notice the Learn More link was removed and Buy was changed to Buy Now.
And I’m seeing on Twitter that owners of older iPhones are getting emails like this from Apple. *PIC* Does Apple typically send out these kind of emails several months after a phone has been released? And emails where price is the first thing mentioned? I don’t remember seeing things like this last year at all.
I think Apple blew it by making the XR screen that big. It's most likely confusing customers.
I bet they're trying to differentiate and inform customers about the differences.
I can see an old lady spending LESS because she sees the "new" iPhone and thinks it's the better one. "Ooooh is this the latest iPhone? Wow pretty colors and larger screen than XS! I'll buy 3 please!"
Now Apple is using retail stores to push these iPhone deals. Again, something they have not done in the past. Of course just because Apple hasn’t done something in the past doesn’t mean they can’t do it in the future but if these phones were selling really well would they be resorting to such aggressive marketing?
https://9to5mac.com/2018/12/08/apple-store-aggressive-iphone-promotion/#disqus_thread Starting this week throughout U.S. stores, Apple co-opted its Genius Bar Displays in classic locations, Apple TV demos, and Today at Apple Forum Displays to promote iPhone XS and XR deals. Rolling out Wednesday, animated video demo loops play on the displays, followed by text similar to Apple’s online copy: “Limited Time. iPhone XR from $449. Trade in your current iPhone and upgrade to a new one.”
And if Apple starts lowering prices it will then be doomed by Business Insider and Bloomberg because of declining ASPs and margins. Even if profit is overwhelming The doomsayers will counter with something else. And I can see guys like @Rogifan_new whining and crying that Apple should refund the difference between the original price and the lower price to those who bought the phones at the original price. You see it’s a lose-lose for Apple with these negative types so Apple should do what it thinks is best for the company.
Everyone has a right to an opinion. If they think prices are too high, they can say so. It doesn't make them whiners.
For Apple, the best way for customers to send a message is by not buying at these prices. If that is happening, it doesn't equate to 'doom and gloom'. It equates to reality. There is a price ceiling for almost every Apple customer and Apple has pushed things up, possibly hitting that ceiling for many. Perhaps the majority.
Apple surged on iPhone. If iPhone stalls, it's logical to see it have an impact on the share price. Perhaps only a temporary impact as Apple transitions to a more more diversified model.
Apple sales have been flat for years. Last year Apple responded by opening up its product spread and included the iPhone X, which (without giving numbers) Apple said was its most popular phone for three quarters. Then analysts said it ran out of steam and far faster than previous Apple flagships.
Perhaps we are seeing the continuation of that lack of steam (or perhaps not) but the most important thing to remember is that if sales are slacking, it shouldn't suprise anyone. It is normal, given the circumstances (price ceiling, currencies, trade wars, uncertainty, 's' cycle, more intense competition).
Notice how ASP is completely irrelevant here unless it is to highlight just how more expensive iPhones are.
And if Apple starts lowering prices it will then be doomed by Business Insider and Bloomberg because of declining ASPs and margins. Even if profit is overwhelming The doomsayers will counter with something else. And I can see guys like @Rogifan_new whining and crying that Apple should refund the difference between the original price and the lower price to those who bought the phones at the original price. You see it’s a lose-lose for Apple with these negative types so Apple should do what it thinks is best for the company.
Everyone has a right to an opinion. If they think prices are too high, they can say so. It doesn't make them whiners.
For Apple, the best way for customers to send a message is by not buying at these prices. If that is happening, it doesn't equate to 'doom and gloom'. It equates to reality. There is a price ceiling for almost every Apple customer and Apple has pushed things up, possibly hitting that ceiling for many. Perhaps the majority.
Apple surged on iPhone. If iPhone stalls, it's logical to see it have an impact on the share price. Perhaps only a temporary impact as Apple transitions to a more more diversified model.
Apple sales have been flat for years. Last year Apple responded by opening up its product spread and included the iPhone X, which (without giving numbers) Apple said was its most popular phone for three quarters. Then analysts said it ran out of steam and far faster than previous Apple flagships.
Perhaps we are seeing the continuation of that lack of steam (or perhaps not) but the most important thing to remember is that if sales are slacking, it shouldn't suprise anyone. It is normal, given the circumstances (price ceiling, currencies, trade wars, uncertainty, 's' cycle, more intense competition).
Notice how ASP is completely irrelevant here unless it is to highlight just how more expensive iPhones are.
This is the slide Apple showed off at the iPhone keynote in September: This is what you see now on the front page of Apple’s website: It seems pretty clear that iPhone XR from $749 and XS from $999 weren’t driving the sales Apple expected. Now XR from $449 and XS from $699 are plastered everywhere (in the US at least), including retail stores. Note too the price is in big bold font. That’s what Apple wants people to see. As far as I know Apple has not done this before. I don’t know why it’s so hard to believe that consumers might be balking at these prices. Just two years ago the flagship iPhone started at $649, now it starts at $999 (and no the XR is not the flagship). Perhaps some consumers don’t think the new phones are worth a $350 price increase.
Price is obviously a problem.
The larger problem is Tim Cook - who will slash quality to maintain profitability.
I will give it to Tim that it’s operating at insane efficiency, however, Apple is maxed out on gimmicks, algorithms, ideas, nefarious schemes, price increases and class action lawsuits that it can maintain.
What you are seeing is a price correction on a company that can’t maintain reving its engine at 7000 rpm.
The company needs ‘fresh’.
Comments
https://9to5mac.com/2018/12/08/apple-store-aggressive-iphone-promotion/#disqus_thread
Starting this week throughout U.S. stores, Apple co-opted its Genius Bar Displays in classic locations, Apple TV demos, and Today at Apple Forum Displays to promote iPhone XS and XR deals. Rolling out Wednesday, animated video demo loops play on the displays, followed by text similar to Apple’s online copy: “Limited Time. iPhone XR from $449. Trade in your current iPhone and upgrade to a new one.”
For Apple, the best way for customers to send a message is by not buying at these prices. If that is happening, it doesn't equate to 'doom and gloom'. It equates to reality. There is a price ceiling for almost every Apple customer and Apple has pushed things up, possibly hitting that ceiling for many. Perhaps the majority.
Apple surged on iPhone. If iPhone stalls, it's logical to see it have an impact on the share price. Perhaps only a temporary impact as Apple transitions to a more more diversified model.
Apple sales have been flat for years. Last year Apple responded by opening up its product spread and included the iPhone X, which (without giving numbers) Apple said was its most popular phone for three quarters. Then analysts said it ran out of steam and far faster than previous Apple flagships.
Perhaps we are seeing the continuation of that lack of steam (or perhaps not) but the most important thing to remember is that if sales are slacking, it shouldn't suprise anyone. It is normal, given the circumstances (price ceiling, currencies, trade wars, uncertainty, 's' cycle, more intense competition).
Notice how ASP is completely irrelevant here unless it is to highlight just how more expensive iPhones are.
This is what you see now on the front page of Apple’s website:
It seems pretty clear that iPhone XR from $749 and XS from $999 weren’t driving the sales Apple expected. Now XR from $449 and XS from $699 are plastered everywhere (in the US at least), including retail stores. Note too the price is in big bold font. That’s what Apple wants people to see. As far as I know Apple has not done this before. I don’t know why it’s so hard to believe that consumers might be balking at these prices. Just two years ago the flagship iPhone started at $649, now it starts at $999 (and no the XR is not the flagship). Perhaps some consumers don’t think the new phones are worth a $350 price increase.