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iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

nytimes.com

101–110 of 551 posts

Re: iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

#101

Is this something that Apple can address with more competitive pricing in China?

More competitive pricing would reduce margins. Apple has chosen to pursue high margins and high profits rather than market share. That's how it accumulated roughly $200 billion in cash.

Re: iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

#103
post #4

I run a repair shop. We've repaired over 3,000 Apple devices for customers. We are always chatting with our customers, so we get a ton of feedback from them about what they're doing with their phones. We hear a few things consistently: 1) Providers have switched from "free upgrades every 2 years" to a plan cost and a monthly phone cost, so people now really know how much their phone costs--and many would rather save…

I don't think buyers had much choice in colors. We're a dev shop and we couldn't get basic silver / grey devices with the specs we wanted. All they had was gold or pink.

Re: iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

#104
post #47

Incredible that this is the first time in 13 years that Apple hasn't posted quarterly growth. I'm sure there will be lots of "Apple has lost its ability to innovate" articles based on this, but growing for the last ~52 straight quarters is insane. And I don't think one quarter without growth is enough evidence to conclude "Apple may be reaching the saturation point among potential customers in some countries" or "oth…

"Apple may be reaching the saturation point (of the products it currently sells) among potential customers in some countries"

Re: iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

#105
It probably doesn't help that the subsidy model has completely changed. But personally, I think iPhone performance has hit a point where one doesn't really feel the need to upgrade right away. I was so ready to upgrade when the contract on my 4 expired. It was really a pain to use after a couple of years. But my 5S has now lasted me two and a half years and other than wishing I had more storage capacity, there's really nothing compelling in the new models for me to want to upgrade. The build quality and battery are so good that I don't feel like it's even getting worn out. The better cameras would be nice, but otherwise? I just can't justify the cost, much as I'd like to, so long as my 5S keeps performing.

I do think Apple needs to focus their money and efforts on improving their services and software integration. There's a lot to like in Apple services, but there's a lot of rough edges and weird gaps, and too often I feel like apps get written and then abandoned. If you bundle an app, it should have a dedicated team that keeps making it better, faster, easier to use all the time.

I also feel like Apple has a real chance to make a mark on the home automation market if they chose to do so. The best stuff out there is still pretty bad, and pretty much all of it spies on you. Based on how they've been adding context-aware features to iPhone in a very privacy-conscious way, Apple is the one company I would still trust to actually try to do home automation in a way that respects my privacy. And they have the money to invest in making it happen. But while I'm sure their hardware would be well-made, can they raise their software polish to the same level?

Re: iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

#106

I'm curious what other people think about the ecosystem as a catalyst, in particular Apple Pay. It seems to be that squeezing between iPhone owners and everyday purchases would be very lucrative.

It seems to be that squeezing between iPhone owners and everyday purchases would be very lucrative And something that Banks will very strongly oppose. How many places can you use Apple Pay right now? I love Android Pay, but the only store I can use it at is Walgreens -- no where else I go takes it. Banks still hold a huge amount of power at the point-of-sale market, and they will not give up their margins to Apple.

WePay is taken just about everywhere now, even at mom and pop drink stands. It isn't as impossible as one thinks it is, but maybe not in the states.

Re: iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

#107

>Apple said it would raise its quarterly dividend 10 percent to 57 cents a share and increase the amount of stock it buys back to $175 billion. Surely that's the NYT's typo and they mean million with an M, right? EDIT: Not a typo, see mbrubeck's reply below.

No typo. A year ago they had authorized $140 billion, and had already repurchased more than $80 billion. https://www.apple.com/pr/library/2015/04/27Apple-Expands-Cap... ($175 million would be less than three hundredths of one percent of Apple's market cap.)

Ah, thanks. Kind of a hard to parse sentence; I read it as buying back $175bn this quarter. Which would be 30% of their market cap and represent all their cash on hand.

Re: iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

#108
post #47

Incredible that this is the first time in 13 years that Apple hasn't posted quarterly growth. I'm sure there will be lots of "Apple has lost its ability to innovate" articles based on this, but growing for the last ~52 straight quarters is insane. And I don't think one quarter without growth is enough evidence to conclude "Apple may be reaching the saturation point among potential customers in some countries" or "oth…

There is something fundamentally wrong with our system that "growth" is used as the main metric for assessing business success. It's growth for the sake of growth (and more $), and not deploying business to solve hard customer problems and to make the world a little bit better.

Re: iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

#109

The era where cell phone companies offered phone subsidies as trade for a customer's long term commitment has ended. The impact this is having and will continue to have on smartphone sales is profound. It is much more likely that customers will upgrade their devices less frequently. We are already beginning to see the impact in Apple and Samsung earnings.

This is false. Tim just said on the call that users are upgrading to the 6s at a higher rate than they did for the 5s.

Re: iPhone Sales Drop, and Apple’s 13-Year Surge Ebbs

#110
post #42

Earlier quoted context omitted.

now that phones are quite fast and have good cameras, what is the main driver towards upgrading? so that you go from 300ppi to 500ppi? not going to make much of a difference and for most people not worth the upgrade costs. The only issue is that phone manufacturers have even more of an incentive to bloat the OS more and more (and make it slower and slower on old models) and to deprecate it faster (on older models) so…

in general, hardware improvements will drive new swanky software, and make computing on smartphones closer to a first class citizen (remember motorola's laptop+phone dock, where the phone powers the laptop?). another big pain point is battery (and battery consumption). still waiting on hardware (and software in conjunction) to get more efficient. you'll remember how power hungry PCs were in the beginning and how much…

Xiaomi's redmi series can last a day of heavy use and even 2 days with lighter use. So i wonder why isn't this solved for others already.
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