Have consumers finally got enough of Apple's efforts to praise iPhone prices in the stratosphere? There are many warnings that suggest this is the case. However, Apple's decision not to break down sales figures for iPhones, Macs and iPads in future revenue reports can explain some real analysis of sales data.
Apple's flagship iPhone prices have risen for several years, but it took a trip to the extreme with the 2017 launch of the iPhone X. The device, with its notched screen and first generation Face ID system, started with a starting price of $ 999. Despite the fact that analysts and pounds were on the high price tag, consumers were apparently unfazed, and drove the iPhone X to become Apple's best-selling smartphone during the production run (over the iPhone 8 and iPhone 8 Plus).
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If you look at the iPhone XS Max, you probably have to sit down to absorb the sticker jacket. It seems almost criminal that a phone that costs over $ 1000 will have only 64GB of storage, but that's exactly the case with the iPhone XS Max, which starts at $ 1,099. Hopping to 2565GB SKU puts you at $ 1,249 while choosing 512GB rings at an overwhelming $ 1,449 – it's 13-inch MacBook Pro area.
To put it in perspective, just two years ago, the iPhone 7 and iPhone 7 Plus launched at $ 649 and $ 769 respectively (for 32 GB SKU). It's amazing how quickly the pricing has escalated in a few short years.
Although you want to get into Apple's current generation, the entry-level iPhone XR, you need to share at least $ 749. While Apple claims that the iPhone XR is currently the best-selling smartphone, the company looks to push customers to upgrade literally . Apple has been pushing alerts that market the iPhone XR through the Apple Store app, and basically markets the starting price of the phone at $ 449. Of course, it's not the final price of the phone, but the price you pay if you're shopping at least one iPhone 7 Plus.
Apple has usually not been to such a tactic to move smartphones, but recent reports have suggested that a decline in sales has forced Apple's hand on these unknown [to Apple customers] tactics. In fact, Apple has even availed itself of offering bonus payment cash to spark customers upgrading. Again, this is something we usually see from competitors like Samsung, but it's a tactic that Apple usually avoids.
Supply sources have suggested that Apple has reduced orders for the iPhone XR and its iPhone XS / iPhone XS siblings. We've heard these reports ever since the iPhone XR launched, and last week, Citi Research's Q1 2019 production estimates were trimmed for Apple's iPhones.
Citi estimates that iPhone production will fluctuate around $ 45 million in the quarter, down from a previous $ 50 million forecast. "The material cut in our forecasts is driven by our belief that the 2018 iPhone is entering a destocking phase, which is not well-suited to the supply chain," said Citi analyst William Yang.
With regard to the flagship iPhone XS Max, the production forecasts are almost reduced in half (48 percent reduction). Earlier this month, TF International Securities cut its own iPhone shipping estimates by 20 percent. We need to keep in mind that this is just an estimate, but it combines analysis cuts with commentary and weaker earnings from Apple vendors – where there is smoke, it's usually fire.
And given that Apple has decided not to post their iPhone sales figures in the future, we have no way of knowing how healthy iPhone sales are, except to look at the revenue figures. It's an unfortunate break from Apple's transparency, but to be fair, none of its competitors pull out individual product sales numbers either.
With that said, the sticker shock for Apple products is not limited to iPhone alone. We have also seen significant increases in iPad Pro prices. Last year, the 10.5 and 12.9-inch iPad Pros started at $ 649 and $ 799 respectively. However, the 2018 11-inch and 12.9-inch iPad Pro raised the starting prices to $ 799 and $ 999, respectively. even ratcheted up the price of the Apple Pencil to $ 129 compared to the first generation model's $ 99 dollar. And here's the kicker; You can't use the first-generation Apple pencil on the 2018 iPad Pros, and the second-generation model won't work on older iPad Pros.
Despite the price increases, President Donald J. Trump has suggested that Apple customers would not There was nothing to see if he were to impose a 10 percent tariff on products manufactured in China, which would include the majority of Apple's hardware portfolio. Refers to iPhone customers, says Trump, "I mean, I can handle it 10 percent and people can stand that very easy."
For its part, Apple CEO Tim Cook claims that there is a lot of expensive technology that goes into their products, justifying high costs. "If you look at the phone priced over $ 1000, most people pay about $ 30 a month for an iPhone or $ 1 a day," explains Cook. "People want the most innovative product available and it's not cheap to do it. "
That's right, for just $ 1 a day, even you can help sponsor a [formerly] $ 1 billion company.