Back then, nearly every new generation of phone brought with it exciting features. That's not really the case now. New phones pretty much get you a faster version of the old phone you're currently using. For all but the hardcore enthusiast, this just isn't enough to spend $1200 every two years on a new phone.
I'm not saying Apple won't survive. They obviously will. But I really doubt that they will reach the sales heights they once did unless they truly begin to innovate again or price their products more reasonably. Faster just isn't good enough anymore. And adding features that 99.9% of us don't need isn't helping.
So, why the hell don't you give us a list of features that in your mind people WANT and NEED on a new phone? I have yet to see this from any armchair critics. You hypocritically state there is nothing different with new iPhones apart from speed (which is complete horse-shit) and in the next sentence you claim that 99.9% of people don't need the new features they've added. So, what is "good enough"? Provide a list of features that the newest iPhone doesn't have, and which you think would be feasible, practical, and meaningful for people. Because, I have yet to see one from Apple bashers.
Well, the tri camera setup was a biggie this year. Apple might have one late 2019. By then, others will have quad or higher options (possibly for more depth sensing options)
Low light hand held AI IS was also a talking point this year. Apple playing catch-up there.
Where is the x3 x5 optical zoom?
Battery tech and fast charging. Apple still shipping with 5W chargers is very poor IMO.
3D object modelling and animation. Have you seen the Mate 20 Pro demo?
New cooling options (this year microcapsule, vapour chambers and graphene hit the market)
Offline AI
Design. Apple looking, well, the same. New colours on the XR were nice but gradients were the thing this year.
Higher power wireless charging.
Reverse charging
True dual SIM. Well, in China Apple finally got to that one.
Notchless design. Sliding and pinhole options arrived in late 2018. Notchless options have appeal to some.
Of course, we already know that folding screens will debut in early 2019. It remains to be seen how well they will perform but expect second of third gen options before Apple gets anywhere near a folding screen. 2020?
Bone Voice ID
Buttonless phones
IR sensor!! ;-)
The problem is normals don’t care about this stuff only tech geeks do. Gradients were the thing? I doubt anyone wasn’t buying an iPhone because the back design didn’t use gradients. And most other things you mention are either gimmicks or nice to haves but not things that will shorten the upgrade cycle.
Well done.
Short, concise, and he'll totally not get it.
Good food always has to go in through the eyes first. Exterior design of smartphones is the same. It doesn't matter if they will end up in cases - having something 'fashionable' is important to some (dare I say many) people. Often, fashionable just means different. Gradients were the star of the show this year. Now we are seeing different finishes on the gradients. Apple has the XR colour options for the same reasons but the 'new thing' this year was gradients.
It has been proven that the camera advances this year (tri, x3,x5 optical zooms, night mode with AIIS) were anything but gimmicks. The camera is one of the major selling points and will continue to be in 2019.
Some areas are for special use cases. Clearly, cooling tech advances are of more use to mobile gamers but having good thermals is essential to any phone.
Battery tech improvements are always welcome. Watching a SCP Huawei phone charge and seeing the decimals fly is very cool. It is that fast.
Honor is working on a buttonless phone with sensors replacing the buttons. The result will be very elegant and ties in very well with the fashion angle I just mentioned.
Adding everything up you begin to see the 'whole package' as a selling point. You might be interested in one specific area and still doubting. That's where the cumulative effect of other less important features can help seal the deal and those features help to drive home the 'premium' angle.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
"Huawei and other Android makers are now working to develop their own internal chips, but these are also significantly behind Apple's work in advancing the state of the art. And the primary reason is that Apple has been selling virtually all of the high-end devices that make money and create a demand for even faster chips in the future. Not just smartphones, but critically also high-end tablets-- a market Apple has effectively owned since it launched iPad a decade ago."
Huawei is working on numerous fronts and at a very high level. The state of the art isn't limited to a smartphone processor.
That's why Huawei has its own in-house designed WiFi chipset (Hi1103) which is the fastest mobile wifi chipset on the market. It has its own 5G modem. Its own storage media (which it will open to the industry). Its own AI hardware (Ascend) Excellent battery technology and charging etc:
Of course, if 5W battery chargers are state of the art, I stand corrected.
More BS from you-know-who.
It’s hilarious watching you try and shift the narrative yet again by claiming there’s more to devices than their processor, thereby trying to diminish Apples achievements in this area (which are FAR ahead of Huawei and everyone else).
And it’s not the first time you’ve tried this.
Sorry, but the processor is the single most important and most difficult component to create. It’s why Huawei doesn’t actually design their processor and uses off-the-shelf ARM cores instead. You know what else Huawei processors lack? NVMe (which Apple has had for over 3 years now) and in-line hardware encryption (which Apple has had for 8 years).
On a related note, where is Huawei’s operating systems? Have they created a world class desktop and mobile OS? Nope. Where’s their workstation class file system to compete with APFS? Are you even aware of the incredible amount of effort required to create a file system? Shall I keep going?
All the other components you mentioned are commodity parts that multiple manufacturers make. Apple doesn’t need to waste time creating their own when they can buy ready made versions. Except for the processor, which has the single biggest impact in device performance.
Regardless of whether these other Huawei initiatives are any good (I doubt you even understand the topics discussed in the articles you linked), it’s all irrelevant anyway. Huawei can pour all the money into cloud and related infrastructure they want, but good luck finding anyone to trust them and use their products outside China.
Diminishing Apple's achievements? Not at all.
He took a swipe at the usual suspects without a care in the world for reality.
I provided a selection of links - which you clearly didn't even bother to read - that hit his claims head on.
The Ascend AI hardware platform alone will go from server based AI down through a whole sub-section of bands right to what Huawei is calling 'nano' use cases.
That's Max, Mini, Lite, Tiny and Nano. That will tie in with the Kirin platform.
I truly think you are not grasping the scope of the project. NVMe? Don't you think the links I provided go a little above that?
No one is taking a stab at the A12 but get real, Huawei is in a different league. I mean, they are literally present (and class leading) at virtually every rung on the communications ladder. Limiting your view to Apple's consumer focused offerings, not seeing the bigger picture and trying to take a swipe at Samsung or Huawei by claiming they are somehow inferior is just laughable.
BTW, Huawei has it own OS in the works - just in case.
I find it interesting that Huawei, which has first name connections with the President, appears to be building a vertical and horizontal communication / security collective, presumably under state sponsorship, while at the same time claiming themselves a "private" company, obviously closed controlled by the Chinese Communist Party, and running commercial operations around the world. Those technologies that you have previously linked, are the key to that.
Have you even questioned how and why Huawei is getting these rather specialized technologies, if not with the support, and likely direction, of the Chinese Government?
Compared to Apple's technologies, it appears that Huawei is the primary Communications and Security infrastructure provider for the Chinese Communist Party.
Thank you for inadvertently making that case with your comment. It really clarifies for me why Western Democracies should have absolutely nothing to do with Huawei for 5G infrastructure.
By the way, this link might be interesting to you;
He's known as being very "concerned" by Chinese Military expansionism.
That is conspiracy theory. Pure and simple.
You do realise that Huawei's Ascend platform is open to anyone that wants to use it, don't you?
When they said they don't compete with chip vendors and wouldn't sell it to third parties, they meant the chips themselves. Anyone can order Huawei servers etc which use the chips.
Apple should lower its profit margin from 40% to 30%. This is a 25% reduction. That means the XS will sell for $750. There are numerous positive effects. I do not have to elaborate. Most importantly Apple can squeeze out more Android copycats. And this will have a positive effect on AAPL. Because investors will feel Apple is more competitive and give a high pe to AAPL.
Your math is wrong. Cutting Profit from 40 percent to 30 percent would only cut the price of the XS to $900. But it's something they probably should do IMO anyway.
Back then, nearly every new generation of phone brought with it exciting features. That's not really the case now. New phones pretty much get you a faster version of the old phone you're currently using. For all but the hardcore enthusiast, this just isn't enough to spend $1200 every two years on a new phone.
I'm not saying Apple won't survive. They obviously will. But I really doubt that they will reach the sales heights they once did unless they truly begin to innovate again or price their products more reasonably. Faster just isn't good enough anymore. And adding features that 99.9% of us don't need isn't helping.
So, why the hell don't you give us a list of features that in your mind people WANT and NEED on a new phone? I have yet to see this from any armchair critics. You hypocritically state there is nothing different with new iPhones apart from speed (which is complete horse-shit) and in the next sentence you claim that 99.9% of people don't need the new features they've added. So, what is "good enough"? Provide a list of features that the newest iPhone doesn't have, and which you think would be feasible, practical, and meaningful for people. Because, I have yet to see one from Apple bashers.
Well, the tri camera setup was a biggie this year. Apple might have one late 2019. By then, others will have quad or higher options (possibly for more depth sensing options)
Low light hand held AI IS was also a talking point this year. Apple playing catch-up there.
Where is the x3 x5 optical zoom?
Battery tech and fast charging. Apple still shipping with 5W chargers is very poor IMO.
3D object modelling and animation. Have you seen the Mate 20 Pro demo?
New cooling options (this year microcapsule, vapour chambers and graphene hit the market)
Offline AI
Design. Apple looking, well, the same. New colours on the XR were nice but gradients were the thing this year.
Higher power wireless charging.
Reverse charging
True dual SIM. Well, in China Apple finally got to that one.
Notchless design. Sliding and pinhole options arrived in late 2018. Notchless options have appeal to some.
Of course, we already know that folding screens will debut in early 2019. It remains to be seen how well they will perform but expect second of third gen options before Apple gets anywhere near a folding screen. 2020?
Bone Voice ID
Buttonless phones
IR sensor!! ;-)
I agree. Apple needs to be much more aggressive on the value front but still advance the tech in 2019. Apple should add a third wide angle Sensor to the X2 and X2Max at $950 and $1050 and add the second (optical zoom) sensor back to the XR2 and XR2mini (based on the original 4.7 inch body with full screen, both with dual sensors) for $750 and $650. For the X2 and X2Max they need to include the 18Watt USB charger for fast charging. For MidTier they should offer the iphone 8Plus(single sensor) and iPhone 8 for $ 550 and $450 and offer the iPhone 6SPlus and iPhone 6S for $400 and $300.
The also need to come up with some new software applications in iOS that make it compelling to go with the X2/X2Max/XR2 line. Maybe a better Siri that doesn't need an internet connection to run as a start. Apple should see if they can buy SnapChat and launch it as a Secure Social Media platform.
I expect the quarterly results for the rest of the year to be bad, especially the Jan-Mar quarter in Asia (will we get another letter from Cook trying to blame everyone but Apple's pricing policies?). Hopefully Apple will have figure out that they need to be more aggressive and competitive.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
I think the points made are pretty relevant. In the Chinese market Apple has been hit by Trump's trade war and a softening demand for high end phones in general. Yet , and clearly stated by Cook (he can't lie, it's a public statement), Apple has been hitting record revenues in many other markets including the US. The analysts are whipping up anti-Apple hysteria to drive the stock down so they can make a killing by short-selling or other means when sanity returns and the stock bounces back.
Then Apple oughta either cut down or stop doing business in and with China then. China has been at economic war with America for several years before Trump ever took office. America has been getting the short end of the stick for years, and it’s about time we got a fair reciprocal deal. China has admittedly wanted to sabotage the United States for years and have been doing so. My proposition: put some manufacturing jobs stateside and watch the quality and innovation go up.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
Time to hit it again, this time with a shorter, simpler, and more focused (less chatty) story. The gross margin has not changed significantly since the iPhone/iPad-based Big Apple appeared. Prices go up because the components and technology increase in cost. Period.
Repeat the story until people here stop slavishly repeating that Apple is getting greedier in its pricing. Also repeat the Dilger-ish angle that Apple earns that 38% margin legitimately by investing massively in new silicon, hardware and software; it deserves the high 38% margin (but too high) by producing the finest mass consumer devices ever produced anywhere by any company. Period again.
Edit: And they need to hold on the the hard-earned cash they amass for times like this, and to move into new monster markets like wearable 3D displays, AI, AR, and the biggest market of all, intelligence-augmented mobility, e.g., self-driving cars.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
The problem is Apple is too slow to react. In the Cook era the biggest innovation is the Apple Watch. Meanwhile Amazon develops Alexa and AWS. Alexa is so successful that Apple is forced to allow Apple music Alexa devices. Microsoft develops their own web services. Netflix dominates streaming. Disney is prepared to release their own massive streaming platform.
It's not about pure innovation. It's about speed to react. Apple is used to coming late to the party with a great product that blows away the mediocre products in that category. The days of disrupting a new market is over for Apple. The competition is too smart, too big, and too well funded. Apple and Cook have to adjust to the times. Otherwise they will continue to fall behind.
The days of disrupting a new market is over for Apple. The competition is too smart, too big, and too well funded. Apple and Cook have to adjust to the times. Otherwise they will continue to fall behind.
So you know what Apple is working on? Methinks you are going to be embarrassed that you ever said that a couple of years, just like legions of bozos who’ve sold them short for decades now.
There’s two ends of a spectrum when it comes to reactions to DED’s articles, and these ends of the spectrum and views generally on Apple’s prospects tend to match up well.
On one end of the spectrum exist those who look at the immediate timeframe - what’s happening right now - and make an assessment of the company and it’s future based upon what they see. These folks are highly reactive, swayed by emotion perhaps. Armchair quarterbacks tossing out desperation plays in the first quarter because the Patriots are down by 17. We know how that has often turned out; how many Super Bowl rings do Brady and Belichick share?
At the other end of the spectrum reside those with a longer view. These are the folks, like some here in this thread, like myself and like Warren Buffett, who never advocated Apple purchase Netflix or Tesla (history will show whether we were correct or foolish, but that history is not yet written), who understand the rationale behind share repurchases and that it’s a very long game strategy, who see innovation where others seemingly cannot (to what must these folks attribute the incredible success of the iPhone over ten years if it doesn’t actually stand above the copycats?), and who can project forward to see the potential that exists for Apple in enormous markets, like health and transportation. And we also understand, regarding disruptions like 2008 and today’s trade war, that ‘this too shall pass.’
Sadly, like religious or political extremes, there is scant bridge connecting the two ends of this spectrum of views. But history favors the long view.
Totally agree with everything you said. In my opinion the biggest change that has occurred in society over the last 25 years or so and the root cause of bridge building failures is that every set of competing narratives is framed as a zero sum game. For my side to win, your side must lose. End of story. Perhaps it is due to our fixation with sports and sports analogies, but the whole notion of compromise and give and take has evaporated. Once you start keeping score the two sides retreat to opposing sides and start a campaign to beat the other side into submission. A good example of score keeping run amok is the US-China balance of trade. Rather than evaluating the relationship based on whether each side is getting what they want and need from the relationship, you start looking at the numbers through a zero sum game lens. If your team has lower numbers you suddenly think you’re getting screwed and declare war on the other side. Compromise and mutual benefit get crushed by the need to always “win” - even when winning has dramatic negative impacts on both sides of the battle. There’s a reason why the phrase “mutually assured construction” is not a thing. It doesn’t fit the zero sum game model.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
Time to hit it again, this time with a shorter, simpler, and more focused (less chatty) story. The gross margin has not changed significantly since the iPhone/iPad-based Big Apple appeared. Prices go up because the components and technology increase in cost. Period.
Repeat the story until people here stop slavishly repeating that Apple is getting greedier in its pricing. Also repeat the Dilger-ish angle that Apple earns that 38% margin legitimately by investing massively in new silicon, hardware and software; it deserves the high 38% margin (but too high) by producing the finest mass consumer devices ever produced anywhere by any company. Period again.
Edit: And they need to hold on the the hard-earned cash they amass for times like this, and to move into new monster markets like wearable 3D displays, AI, AR, and the biggest market of all, intelligence-augmented mobility, e.g., self-driving cars.
Even Tim Cook might be having doubts about this (the bolded statements), given the last quarter results.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
I think Rene Ritchie phrased it as Apple isn’t making iPhone more expensive they’re making more expensive iPhones. OK cute, but what does that matter to the end consumer? At the end of the day flagship iPhones are more expensive now. The end consumer doesn’t care about Apple’s margins. Maybe the XS and XR aren’t overpriced based on margins but if they’re more than people are willing to spend and thus there are fewer upgrades then that’s a problem for Apple.
Second, and more likely, the battery replacement issue suggests that many people are no longer upgrading iPhones because they’re now “good enough” and everyone is more than happy to just pay a bit more for a better battery.
This is what I've been saying for a while. This combined with higher prices simply aggravates the problem.
Time to hit it again, this time with a shorter, simpler, and more focused (less chatty) story. The gross margin has not changed significantly since the iPhone/iPad-based Big Apple appeared. Prices go up because the components and technology increase in cost. Period.
Repeat the story until people here stop slavishly repeating that Apple is getting greedier in its pricing. Also repeat the Dilger-ish angle that Apple earns that 38% margin legitimately by investing massively in new silicon, hardware and software; it deserves the high 38% margin (but too high) by producing the finest mass consumer devices ever produced anywhere by any company. Period again.
Edit: And they need to hold on the the hard-earned cash they amass for times like this, and to move into new monster markets like wearable 3D displays, AI, AR, and the biggest market of all, intelligence-augmented mobility, e.g., self-driving cars.
If component costs are going up and thus increasing the price of the product that’s an issue is it not? The fact that Apple was pushing the trade-in program hard is all the proof we need that they weren’t seeing the upgrades they expected. Tim Cook even admitted this in his letter:
While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be. While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.
That sentence can be boiled down to some people are balking at the price of new iPhones. What Apple’s gross margins are doesn’t matter if the end price is too high for some consumers and they end up not upgrading.
Apple has kept the new higher trade in values going past Christmas. Why? Because price was an issue. This is why the battery program was successful. People were not going to shell out more money for a new iPhone when in their opinion, the issue with their old phone was the battery. The real problem was the update took more overhead than the older OS that came with their 6 & 6s.
Now, Apple knew they weren’t going to meet estimates before the holiday season started. They pushed retail hard into talking about upgrades instead of a battery, because there was a higher degree of customer satisfaction when a customer upgrades a device over a repair. When that wasn’t working because the response was it was too expensive to upgrade right now, Apple raised the amount of the trade in value. When that hit a snag because many customers wouldn’t get any money because their device was damaged, Apple started offering money for damaged trade ins. This is starting to work, but it’s too late for this quarter.
The China tariffs have hurt Apple due to the Chinese government advising their people to not buy Apple products in retaliation. Add this to stalled upgrades here and this is why Apple is missing its forecast.
Btw, I am critical because like most people who comment on this site, I love Apple and want them to succeed. I have been loyal since 1990 and I don’t want a repeat of the 90’s with a “beleaguered” Apple. Sure Apple is much larger today and has a lot of cash on hand, but that can change fast if negative consumer confidence becomes an epidemic.
This might be a wake up call to work harder on quality since that has taken a hit in the last few years. I am optimistic about it.
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https://www.wsj.com/articles/chinas-economic-downturn-takes-the-shine-off-its-resilient-consumers-11546513717
You do realise that Huawei's Ascend platform is open to anyone that wants to use it, don't you?
When they said they don't compete with chip vendors and wouldn't sell it to third parties, they meant the chips themselves. Anyone can order Huawei servers etc which use the chips.
Microsoft is rumoured to be a potential client.
Repeat the story until people here stop slavishly repeating that Apple is getting greedier in its pricing. Also repeat the Dilger-ish angle that Apple earns that 38% margin legitimately by investing massively in new silicon, hardware and software; it deserves the high 38% margin (but too high) by producing the finest mass consumer devices ever produced anywhere by any company. Period again.
Edit: And they need to hold on the the hard-earned cash they amass for times like this, and to move into new monster markets like wearable 3D displays, AI, AR, and the biggest market of all, intelligence-augmented mobility, e.g., self-driving cars.
Thanks for the link. This is the whole point.
It's not about pure innovation. It's about speed to react. Apple is used to coming late to the party with a great product that blows away the mediocre products in that category. The days of disrupting a new market is over for Apple. The competition is too smart, too big, and too well funded. Apple and Cook have to adjust to the times. Otherwise they will continue to fall behind.
If component costs are going up and thus increasing the price of the product that’s an issue is it not? The fact that Apple was pushing the trade-in program hard is all the proof we need that they weren’t seeing the upgrades they expected. Tim Cook even admitted this in his letter:
While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be. While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.
That sentence can be boiled down to some people are balking at the price of new iPhones. What Apple’s gross margins are doesn’t matter if the end price is too high for some consumers and they end up not upgrading.
Now, Apple knew they weren’t going to meet estimates before the holiday season started. They pushed retail hard into talking about upgrades instead of a battery, because there was a higher degree of customer satisfaction when a customer upgrades a device over a repair. When that wasn’t working because the response was it was too expensive to upgrade right now, Apple raised the amount of the trade in value. When that hit a snag because many customers wouldn’t get any money because their device was damaged, Apple started offering money for damaged trade ins. This is starting to work, but it’s too late for this quarter.
The China tariffs have hurt Apple due to the Chinese government advising their people to not buy Apple products in retaliation. Add this to stalled upgrades here and this is why Apple is missing its forecast.
Btw, I am critical because like most people who comment on this site, I love Apple and want them to succeed. I have been loyal since 1990 and I don’t want a repeat of the 90’s with a “beleaguered” Apple.
Sure Apple is much larger today and has a lot of cash on hand, but that can change fast if negative consumer confidence becomes an epidemic.
This might be a wake up call to work harder on quality since that has taken a hit in the last few years. I am optimistic about it.