This has been known to be on the cards for a while now…
The question is… Why do you think this is happening?
Tim Cook is blaming… battery replacements and China
My personal thoughts are that the majority of customers aren’t feeling meaningful upgrades to justify huge price tags. It’s relative, but I don’t think the XS and XS Max justify being upwards of £1k, and neither do I think the XR is worth £750 (I own one… but if it weren’t for the fact that I got a 30% discount on my tariff I probably wouldn’t have bothered). I do have friends and family who are still using 6’s and 7’s for precisely this reason.
I think it is quite likely that the high-end smartphone market has hit a plateau, and Apple have elected to basically only sell high-end devices. Samsung, on the other hand, won’t be feeling the pinch. They have products in every category and a more diverse business.
My thoughts are exactly the same. Prices are now too high for very little increase in functionality. They are up to other tricks as well, e.g. available memory. My last phone was 128gb and that would have been more than adequate for my new one but only 64 and 256 and above available I don’t need 256 (at least not yet) but had no choice so another price increase enforced on me. Looks like the greed is backfiring and I for one am pleased as I think it may lead to lower prices.
If my battery wasn’t completely dying after 2-3 years I would not upgrade. Got a yellow XR and pretty happy with everything.
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Anarchist
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5
I agree. I’ve had Apple phones since the 3G. I used to upgrade every two iterations, and it was always worthwhile in terms of better user experience. So from 3G to 4, then 4 to 5, then 5 to 6 were all quite big upgrades in my view.
But although I could easily afford to upgrade from 6 to 7 at the time, I just didn’t see what the point was. And it was the same when the 8 came out.
I’ve now gone from 6 to X; and it’s a better phone, but I’m not sure it’s that much better to be honest.
I want an Apple phone, cos I don’t want Google to know my every thought and whether it’s real or just good marketing Apple does better privacy. But I use an SE because I don’t need an enormous phone.
Simply could not justify £1k for a phone.
I was planning on getting a replacement for my SE (probably an XR), but other things happened and my cash was diverted. I’m now trying to build up a surplus again but TBH I’m fine with the SE for now, despite having to squint to read the screen, and by the time I’ve saved the cash the price for the XR should have dropped. Probably.
The cost of new phones does trouble me. If not for the fact I’m fully embedded in the Apple world, I’d consider a move to Android. At least I can get a decent phone for a decent price!
There’s an argument that Apple have sort of done this to themselves. if you buy an iPhone X (or S, S Max or R) there is enough headroom in the processor, and the iOS has been stripped back to it runs well even on 3 or 4 year old phones, there’s no real need to upgrade, other then if you’re like me (Upgrade Programme type) or need to change. Where as most Android phones I’ve experienced, seem maxed out from Day 1.
Whether Apple did this on purpose, I don’t know.
Also think Cook misjudged the statement, fairer would have been to say we made great phones, but Tariffs, Trump and China (plus Brexit) are affecting revenue, but we’ll still make more money then nearly everyone, so suck it up.
Not surprising really. Apple have pushed up their prices and no longer offer anything amazingly better than the competition. When you can buy a oneplus 6t for nearly half the price, it’s no wonder Apple are struggling. Google seem to be having similar problems shifting the Pixel 3 based on the constant sale adds i’ve seen
People simply don’t need to upgrade their phones as often anymore, the specs are good and with a battery swap last a decent timeframe.
Apple need to focus on services not just hardware as well as reducing the cost of the flagship products, they are a little too pricey IMO.
We all know apple make a huge markup on them.
If they reduced the price of the XR a bit more and the same with the XS I reckon they may not be in such a similar situation.
Apple makes phones that stand the test of time, but end up being punished by the stock market for not selling enough - It’s just the way it goes.
Most people I know still opt for an older (cheaper) iPhone, over a current range Android phone - Not because of the specs, but purely because of the OS.
I’ve said before, the “specs” on some of the Android phones are great, and generally come at an appealing price point which makes it bonkers to buy a top end Samsung or Google phone (unless you wanted one specific feature like Night Sight).
But how long will those phones genuinely last (and receive updates - Heck, even the latest Android flagships still can’t run the newest Android OS).
I see 4/5/6 year old iPhones still working fine, but very rarely do I see an old Android phone running smoothly.
Apple’s share price was probably too inflated anyway, so I don’t see this being a major talking point past this week.
I also do not like the way the camera’s on the new iphones stick out and would never do a mobile upgrade again I would buy out right if i could afford it
Another factor possibly is the news that netflix has pulled it’s apple store billing completely, doing it all themselves cutting out the 30% apple tax,
Spotify has already done this and I can just see more and more companies doing it.
The markets are just responding to Apple’s first profit warning since 2003 and the falling US stock market hasn’t helped. It will settle soon.
I am an Apple fan. I have a iPhone X (and and Apple phone since 2008), an iPad Pro 2018, an iPod Touch and a Macintosh. However I do believe Apple is starting to lose its way.
Apple under Steve Jobs was a product driven company. It wanted and produced the market leading products, unmatched by its rivals, and justified the high prices. Customer services was top notch. Products were built to stand the test of time. He didn’t care about shareholders, as he blamed them for his sacking and Apples demise in the 1980’s/90’s (they never paid a dividend under Jobs after he returned).
Tim Cook on the other hand has monetised Apple more through economy of size, supply chain and clever marketing of more mediocre products, compared to its rivals, and relying on the goodwill of Apple customers to return. Raising prices to offset the gradual falling sales. Customer service is still market leading but, in my opinion, not like it was. I feel products fail more than they used too - look at the recent iPad Pro bendgate when an Apple engineer stated they are bent by design .
I do agree the smartphone market is maturing and Apple, as well as other smartphone manufacturers, need adapt or die. I read an article somewhere today comparing Apple to Nokia.
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Anarchist
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Stock market over reaction. My employer used to release good news in the market and then the share price would tank. It’s tanking so much because it’s apple…
Whilst they might see a slow down this year (which is fairly typical of an ‘s’ phone year), next year they could deliver a phone which everyone wants.
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