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While iPhone sales remain stagnant, Apple services hit $10B in revenue

arstechnica.com

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Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#31

Post by Kurtz79 »

IMTDb wrote: post #11
Kurtz79 wrote: post #6

Earlier quoted context omitted.

If previous sales were about the same numbers, it's a perfectly fair way. Impressive, amazing numbers maybe, but still stagnant, if they didn't improve over the last ones.

Stagnant has a very negative meaning attached to it. The author could have used words like "constant" (neural) or "steady" (positive). He chose to use "stagnant" and deserves to be called for it.

Why?

Stock price plummeted after the results, and I doubt market analysts were influenced by that specific article.

The market clearly agrees on the assessment that the sales are "stagnant", negative connotation included. Which is not surpising since the stocks are priced taking into account potential growth, rather than present results.

"Constant" or "steady" I would expect from Apple PR wording...

(And I have no beef with Apple, my brother works there and I'm a satisfied customer, for all that matters).

Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#32

Post by ericcholis »

Cthulhu_ wrote: post #28
beerlord wrote: post #23

Apple takes a 30% commission on any revenue passing through the store, and 15% on subscriptions. These fees are exorbitant - they are merely ringing a credit card, transmitting a few megabytes of data, and performing a basic examination of the app itself. The oligopolistic position that they hold is their main point of value.

Not entirely true. Stores are also the first point of contact for support and warranty. I know Apple resellers nearby also offer (free) courses to get acquainted with apple devices and applications.

beerlord is referring to the app store

Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#33

Post by onion2k »

chongli wrote: post #25
nounaut wrote: post #4

Earlier quoted context omitted.

Stagnant implies it's not growing, not that it's not selling.

Stagnant carries a connotation of some dark, oxygen-deprived mire that suffocates fish and smells horrible. It invokes images of death and decay. Not exactly the idea I had in mind when I hear of the sales numbers.

Not exactly the idea I had in mind when I hear of the sales numbers.

The global market size for mobile phones is still growing. If Apple's sales aren't growing at least in line with the size of the market then their market share is shrinking. Selling a lot in a stable market is great. Selling a lot in a growing market is ... less great.

Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#34

Post by cm2187 »

alexis_fr wrote: post #29
cm2187 wrote: post #9

Earlier quoted context omitted.

How high do you think they can go in term of prices? And do you think they will sell many £1000 smartphones in a recession? Stagnant volumes is not an imminent problem but the share price is a forward looking metric.

A $600 mass phone in 2007 was difficult to imagine. And 2008 was the recession.

Yeah, but that's the point of the market saturation. Apple (or Google for ads) achieved a phenomenal growth despite the recession because they were taking over a market. But now that the market is saturated, there won't be a growth in volume to offset difficult economic conditions.

Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#35

Post by tguedes »

diminish wrote: post #14
tpetry wrote: post #7

Stagnant sales with a much more expensive smartphone, i don‘t think anybody wouldn‘t live to have the same „problem“.

Many analysts thought higher average selling prices were possible because of demand inelasticity at the forerunner iPhone. Service revenues would get boosted by lower prices if units sold increase. Cook is doing a fine balance of prices, sales, services. Very successful so far. Yet I'm afraid the only way is down from here.

Why down? If iPhone sales remain stable, which they should, iPhone customers are extremely loyal; as long as they continue to grow in their Other and Services category, there will be a lot of growth for the company.

Plus whatever device that comes out for AR will be interesting. Apple still continues to understand strategy and the technology landscape better than any other company.

Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#36

Post by akvadrako »

onetimemanytime wrote: post #27
howlingfantods wrote: post #12

The average sales priced for an iPhone increased nearly 30% from $618 to $793. Services now account for 16% of revenue. Apple is gradually shifting from a device maker to an ecosystem company that consumers pay a premium initial fee to enter and pay an additional recurring free to use.

Maybe the latest iPhone is good enough, like a 8 year PC is for most people? Either way, to get $$ from services, you need to have people use your devices and platform. Microsoft went as far as saying, if you're going to pirate an OS, pirate ours. https://www.techrepublic.com/article/microsoft-gives-up-on-c...

But not just any user - Apple users spend a lot more on apps than Android users. And for developers, fewer users means less support.

Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#37

Post by decasteve »

diminish wrote: post #17
howlingfantods wrote: post #12

The average sales priced for an iPhone increased nearly 30% from $618 to $793. Services now account for 16% of revenue. Apple is gradually shifting from a device maker to an ecosystem company that consumers pay a premium initial fee to enter and pay an additional recurring free to use.

Yet services would be better if units sold gets increased. So cheaper models are a must. So it's so far an excellent strategy milking the high end keeping the units sold not fall.

This is also true if people keep their devices longer — which seems to be the case from what I’ve been seeing. The low end now seems to be previous generations phones like 7/8.

Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#38

Post by akvadrako »

trosi wrote: post #10
hacker_9 wrote: post #8

I mean sure 'Stagnant' means that there was no growth, but it also implies that this is a bad thing, which in this case it obviously isn't. Clickbait title.

So it's a good thing that unit sales haven't risen?

I think it's fine; not everything needs to keep growing forever.

Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#39

Post by SmellyGeekBoy »

hacker_9 wrote: post #8

I mean sure 'Stagnant' means that there was no growth, but it also implies that this is a bad thing, which in this case it obviously isn't. Clickbait title.

What word would you have used instead? "Stagnant" is technically accurate.

Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue

#40

Post by minikites »

hacker_9 wrote: post #8

I mean sure 'Stagnant' means that there was no growth, but it also implies that this is a bad thing, which in this case it obviously isn't. Clickbait title.

Capitalism requires growth (or more generally, increased consumption of products/resources), so stagnation is bad by definition.
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