r/apple•
danielfgom

Why iPhone shipments have tanked

"Apple continues to be more aggressive with its promotional activities, but still faces two key challenges: super-premium pricing for its latest models and insufficient price elasticity in its older models to drive significant additional shipments of two-to-three-year-old devices."

In other words, they're too damn expensive.

Posted Aug 6, 2019, 8:36 PM UTC

018
jmnugent•

Anyone who tries to boil down iPhone sales to 1 short snarky sentence.. is probably doing an incredibly poor job of encompassing a complex issue that has a lot of moving parts.

29
CeeKay125•

I think more has to do with them being so powerful they are lasting longer. No longer is the iPhone ridiculously slow after 2-3 years so people are not upgrading as often.

26
JWHtje•

Yep, just bought my iPhone 8 to hodl until the 2020 release. And to be honest, this thing is blazingly fast!

4
PM-ME-HOT-PICS•

Was that ever really the case? I had an iPhone 3GS for 4 years before the battery expanded in it, and i still remember it being completely usable, aside from some apps taking a little while to load

3
CeeKay125•

The 6 and below were pretty rough the older they got. From the 7 up, they have done much better in handling day to day tasks much better, even as they get older and older. The X and up should last even longer since they have even more RAM and a processor that already isn't being fully taxed.

4
PM-ME-HOT-PICS•

I agree the more recent models last MUCH longer, but saying older models lasted 2-3 years before becoming ridiculously slow is quite an exaggeration

2
[deleted]•

[deleted]

13
garylapointe•

Why iPhone shipments have tanked

Tanked might be an exaggeration, I hear they've sold a few of those iPhone phones...

9
Slightly_Sour•

The pricing of old models seems a bit high.

4
ngrenjie•

The alternative is that you lower the prices of your phones, which may allow you to sell a bunch more, but your total profits is still lower thanks to lower margins.

I am pretty sure that Apple has done their projections and settled on their current strategy as this is what will allow them to maximise their earnings.

I don’t like paying more for stuff anymore than you do, but I do believe that what Apple is doing makes sense in light of their current situation - higher prices, more hardware and more services.

4
MKevin3•

PC shipments tanked because they work good enough for what they are used for. Now mobile technology hit a nice performance point. A phone from even a few years ago does as much and plenty more than the average user needs.

Sure, I love me a new camera, more storage and faster CPU but honestly pick most any device over the past couple of years and it is fine. It runs all the apps I need, takes pictures that I have no complaints about, records video, answers email, gets texts and lets me waste time playing a variety of games. Same goes for other family members. So rare I see a phone where I think "damn, really, you need to upgrade dude!". Upgrades now are based on broken devices due to being dropped and not due to "this thing sucks for speed".

2
mr-no-homo•

The expert “analysis” tend to be wrong year after year. I also think iPhones are so damn good these days and kept up with yearly iOS updates that people are not really upgrading as much as they used to. I prob will be keeping my XS and skipping this years model, I’m still wowed by the XS, its such a great phone. (I say that coming from a 7)

1
danielfgomOP•

The XS is definitely a lovely device. All the iPhone's are. They are not junk by any means and anyone would be happy with one

I just don't think they're worth 1000. Same goes for any other smart phone, including the new Note 10. Prices are just silly now.

The market needs to shift down in price, and many Android manufacturers have filled that gap, but the big boys like Apple and Samsung just don't want to let go of those high margins.

I'd like to see 500 being the premium price for a XS or S10, not 1000. Believe me, they'd still make a tidy profit at 500.

0
danielfgomOP•

Here's the lined article. Done know why it never linked the first time: https://9to5mac.com/2019/08/06/iphone-shipments-decline-q3/

0
[deleted]•

What tanked. I have a new XSMAX.

-6
danielfgomOP•

There's an article linked, if that wasn't clear.

-25
AWildDragon•

There isn’t a linked article above.

15
ThannBanis•

I can’t see a link in your post.

9
guryfitze•

What is this quote from?

7