Poor iPhone sale that forces Apple to make more dangerous decisions




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As the festive sales period approaches, are consumers falling in love with expensive iPhones? Did the growth in iPhone sales finally force Apple into a new course of action? And can Tim Cook's Apple change the history of its business from a history of popular hardware to one of software and services?

Tim Cook, Apple's CEO, speaks as he presents new products during a launch event at the Brooklyn Academy of Music on October 30, 2018 in New York City (photo by Stephanie Keith / Getty Images)Getty

Let's start with Apple's decision that the sales numbers of the iPhone will no longer be reported. Given the flat annual sales of the iPhone since the launch of the iPhone 6 and the iPhone 6 Plus, the story about the increase in numbers no longer belonged to the real unit sales, belongs to the increase in margins and the increase in the average sale price .

If you are going to sell success, you need bigger numbers. With the iPhone XS Plus reaching $ 1500 in some configurations, the margin for larger margins and higher sales prices is practically discounted in the market. Hiding the iPhone numbers means that you can focus on increasing the revenue of the software and services, rather than the hardware revenue.

I suspect that Apple thought it would be a fairly long delivery period, but this week the reports on the reduction in the production of the iPhone XR confirm the softening of the smartphone demand of $ 750 "affordable".

Start of official sales of iPhone XR smartphones at a Moscow store: store (photo by Sergei SavostyanovTASS through Getty Images)Getty

Let's not forget that the traditional haste to pre-order the iPhone XR did not cause the "out-out" signs to run out on the first day. In fact, four days pbaded before a delay in shipping to buyers was notified. After that period of smooth release, According to reports, Apple has cut the production line of the iPhone XR from 60 lines to 45. Even allowing a rush to adapt to the initial demand, the reconfiguration of the capacity is a remarkable cut.

What is selling well? The iPhone 8 and 8 Plus last year, which now come with a discount of $ 100 compared to the launch price. Apple's push for the best-selling iPhones with more margin and more revenue is considering risks as consumers turn to cheaper phones.

The start screen of an Apple iPhone 8 plus is seen in this photo illustration on August 14, 2018. (Photo by Jaap Arriens / NurPhoto via Getty Images)Getty

Last year, the iPhone X was weaker than the projected sales, with the rest consisting of the iPhone 8 and iPhone 8 Plus. The iPhone XR (possibly the iPhone 9) is incorporated to replace the iPhone 8 family in the portfolio. If XR sales are as weak as badysts suggest, and sales of XS and XS Max are only in line with expectations (configure the iPhone X), then Apple's decision to hide the sales figures can begin just when the iPhone is in a downward curve.

Can Apple rely on service and software revenues to replace hardware margins? That could be a difficult question given that 59 percent of Apple's revenue comes from the iPhone. Services are a quarter of that, at 15 percent.

What happens with the Apple unit to increase revenue from services as it sells fewer devices? Because you still need hardware to run your custom services.

Tim Cook has raised Apple to be a trillion dollar company. Can you continue with your dangerous decision to change the history of the iPhone?

Now read more about the lost opportunity for Apple to revolve around 2018 …

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As the festive sales period approaches, are consumers falling in love with expensive iPhones? Did the growth in iPhone sales finally force Apple into a new course of action? And can Tim Cook's Apple change the history of its business from a history of popular hardware to one of software and services?

Tim Cook, Apple's CEO, speaks as he presents new products during a launch event at the Brooklyn Academy of Music on October 30, 2018 in New York City (photo by Stephanie Keith / Getty Images)Getty

Let's start with Apple's decision that the sales numbers of the iPhone will no longer be reported. Given the flat annual sales of the iPhone since the launch of the iPhone 6 and the iPhone 6 Plus, the story about the increase in numbers no longer belonged to the real unit sales, belongs to the increase in margins and the increase in the average sale price .

If you are going to sell success, you need bigger numbers. With the iPhone XS Plus reaching $ 1500 in some configurations, the margin for larger margins and higher sales prices is practically discounted in the market. Hiding the iPhone numbers means that you can focus on increasing the revenue of the software and services, rather than the hardware revenue.

I suspect that Apple thought it would be a fairly long delivery period, but this week the reports on the reduction in the production of the iPhone XR confirm the softening of the smartphone demand of $ 750 "affordable".

Start of official sales of iPhone XR smartphones at a Moscow store: shop (photo by Sergei SavostyanovTASS through Getty Images)Getty

Let's not forget that the traditional haste to pre-order the iPhone XR did not cause the "out-out" signs to run out on the first day. In fact, four days pbaded before a delay in shipping to buyers was notified. After that period of soft launch, Apple has allegedly reduced the production line of iPhone XR from 60 lines to 45. Even by allowing a rush to meet the initial demand, the reconfiguration of capacity is a remarkable cut.

What is selling well? The iPhone 8 and 8 Plus last year, which now come with a discount of $ 100 compared to the launch price. Apple's push for the best-selling iPhones with more margin and more revenue is considering risks as consumers turn to cheaper phones.

The start screen of an Apple iPhone 8 plus is seen in this photo illustration on August 14, 2018. (Photo by Jaap Arriens / NurPhoto via Getty Images)Getty

Last year, the iPhone X was weaker than the projected sales, with the rest consisting of the iPhone 8 and iPhone 8 Plus. The iPhone XR (possibly the iPhone 9) is incorporated to replace the iPhone 8 family in the portfolio. If XR sales are as weak as badysts suggest, and sales of XS and XS Max are only in line with expectations (set up the iPhone X), then Apple's decision to hide sales figures can begin just when the iPhone hits down curve.

Can Apple rely on service and software revenues to replace hardware margins? That could be a difficult question given that 59 percent of Apple's revenue comes from the iPhone. Services are a quarter of that, at 15 percent.

What happens with the Apple unit to increase revenue from services as it sells fewer devices? Because you still need hardware to run your custom services.

Tim Cook has raised Apple to be a trillion dollar company. Can you continue with your dangerous decision to change the history of the iPhone?

Now read more about the lost opportunity for Apple to revolve around 2018 …


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