stagnant /ˈstaɡnənt/ – showing no activity.
so they're selling 0 iphones? really?
While iPhone sales remain stagnant, Apple services hit $10B in revenue
51–60 of 111 posts
Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue
#52I 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.
The real story is that from now on Apple will not be reporting unit sales for their products. Next quarter and from there on there will be just the aggregated sales figure for how much physical stuff they sold with nobody knowing whether that was phones, watches, laptops or dongles.
This is their choice and their business. I don't think this is fair on the people that have helped them get to where they are by writing apps, making accessories or even writing web pages that look good on Safari.
Why would a company invest in making accessories for the iPad if they have no clue as to whether the things are selling or not? How do you make the business case to invest in such accessories if you only have anecdotal evidence as to whether the iPad is selling or not?
Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue
#53Apple services definitely are on an upward trajectory for quality and breadth. Two years ago I thought Siri was a bit of a joke because the voice recognition and accuracy/usefulness of results was not there for me. Different now: about 4 months ago I deinstalled the Google Assistant from my iPhone and now just use Siri. Siri is still not as good but there is the privacy issue. Siri is good enough for me.
I still prefer Google for the Play Music + commercial free YouTube bundled service, and also GCP is my favorite cloud service.
Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue
#54Earlier quoted context omitted.
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.
You write that it can only goes down, but at the same time you hint that a lower priced devices would boost service revenues. So isn't the next step a "cheaper" iphone ? (or a better second hand market 'certified by' Apple)
Yes I think so. Apple Management had better data and tools to make the fine decision. Fact is that smartphone market saturates.
Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue
#55Stagnant sales with a much more expensive smartphone, i don‘t think anybody wouldn‘t live to have the same „problem“.
Well looking at the offering, the new Xs and Xs Max, are not that big of a change from the X so the desire to upgrade may be mooted. With the X Apple introduced a whole new means of authentication and screen technology that was truly a jump from previous phones. This fulfilled two very important categories for sales, the people who love new tech and the people who love being seen with the newest tech; these are not necessarily people who give one with about what it does but are in it for appearances.
If anything the best new product update this cycle has been the watch but its killer app is not yet released nor has a set in stone date (one point ekg)
Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue
#56Given that Samsung just reported a 33% drop in smartphone sales from the same quarter last year, Apple reporting a .4% increase in their smartphone sales vs the same quarter last year sounds pretty good. https://www.telegraph.co.uk/technology/2018/10/31/samsung-re... https://www.anandtech.com/show/13540/apple-announces-q4-fy-2...
I think we should attach an important health warning. Samsung release their S9 in March 2018, whereas Apple released the iPhone X in November. So this quarter is the drop from Samsung's first full quarter of their new flagship sales to one year later. Apple's quarter is the drop from the last full quarter before their new flagship to a quarter where they released a new flagship.
Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue
#57The 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.
> Yet services would be better if units sold gets increased.
I'm not sure that follows. Apple's a very different company in many ways. Notably, by being dominant in a relatively deep-pocketed userbase, they don't need to worry about the "our profit margin is near zero and likely to shrink further so we have to grow just to stay alive" red queen's race that so many other tech companies find themselves in.
Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue
#58Apple services definitely are on an upward trajectory for quality and breadth. Two years ago I thought Siri was a bit of a joke because the voice recognition and accuracy/usefulness of results was not there for me. Different now: about 4 months ago I deinstalled the Google Assistant from my iPhone and now just use Siri. Siri is still not as good but there is the privacy issue. Siri is good enough for me. I still pref…
Out of curiosity, what do you use Siri for that it can be good enough?
I use Siri almost exclusively for reminders (e.g., "remind me at x PM to do y" or "remind me when I get home to do z"), and even with this limited use case I often end up with baffling reminders in the future (my favorite reminder is to "make farts"--I never did remember what it was supposed to be.) Beyond reminders I've yet to find a compelling, reliable use case.
Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue
#59I 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.
Does it? There are plenty of companies with lower growth that still produce regular profits and dividends.
Re: While iPhone sales remain stagnant, Apple services hit $10B in revenue
#60Earlier 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.
I’d argue that £1000 phones are less affected by a recession than £400 phones
I think that classifies them as luxury products, which historically tend to be pro-cyclical.