Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Apple reports Q3 results

apple.com

Post reply on HN
Print view View original

11–20 of 251 posts

Re: Apple reports Q3 results

#11

Post by rootusrootus »

matthewdgreen wrote: post #3

Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.

There are other examples as well. For me, it is RVs. Generally people only buy them when they're feeling good about the future, so you'd expect uncertainty to be devastating right now. Nope, dealers are moving them as fast as they can get them in stock, and they're not budging on price. Normally you only pay about 2/3 MSRP for an RV. Not right now.

Sucks because I want to upgrade to something a little bigger, and I don't want to pay an extra 10K just to have it right now. So I'll wait until January and see if the dealer is feeling more agreeable.

Re: Apple reports Q3 results

#12

Post by kbenson »

matthewdgreen wrote: post #3

Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.

That's likely reduced entertainment expense of eating out and of traveling and vacations shifting at least partially to other areas. An iPhone costs a lot, but so does a week long vacation in another state, and eating out a couple times a week, and those are less likely for a lot of people now.

Re: Apple reports Q3 results

#13

Post by gizmo385 »

matthewdgreen wrote: post #3

Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.

Hasn't consumer spending (at least at some level, not completely) been propped up by the unemployment assistance and CARES act checks? I wonder how much spending on these kinds of goods might drop if that assistance goes away.

Re: Apple reports Q3 results

#14

Post by throwanem »

matthewdgreen wrote: post #3

Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.

Wouldn't surprise me if a lot of people are buying new phones while they're sure they can, to avoid the risk of being stuck with an old and potentially failing one when they can't.

Phones are luxury goods only up to a point. Especially once you're invested in an app store, it can cost a good deal to switch platforms. And it should be news to no one that having access to communications grows more, not less, important, the closer you get to stony broke.

Re: Apple reports Q3 results

#15

Post by caseyohara »

matthewdgreen wrote: post #3

Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.

We'd have to see the product breakdown, but it's possible this could be explained by more people working from home and home schooling; people are likely spending more time on devices like tablets and laptops. If iPhone sales are up, that would indeed be remarkable.

Remarkable either way because Apple stores were closed for most of the quarter.

Re: Apple reports Q3 results

#16

Post by jandrewrogers »

matthewdgreen wrote: post #3

Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.

Interestingly, spending on luxury/positional goods does not decline when the economy is poor. This is a well-known effect. That is not where people tend to cut back.

If you looked solely at Apple's revenue during 2008/2009 you wouldn't even know there was a crash, never mind one that was severe by any measure.

Re: Apple reports Q3 results

#17

Post by kbenson »

rootusrootus wrote: post #11
matthewdgreen wrote: post #3

Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.

There are other examples as well. For me, it is RVs. Generally people only buy them when they're feeling good about the future, so you'd expect uncertainty to be devastating right now. Nope, dealers are moving them as fast as they can get them in stock, and they're not budging on price. Normally you only pay about 2/3 MSRP for an RV. Not right now. Sucks because I want to upgrade to something a little bigger, and I d…

Well, that's the safe way to vacation now, take your shelter with you. That seems obvious to me once you mention the trend.

Re: Apple reports Q3 results

#19

Post by biql »

matthewdgreen wrote: post #3

Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.

I’d guess that people buying luxury goods are also the ones least affected by unemployment.
Post reply on HN