3 ms·
> "sales revenue is up but volumes are down for the last few years and not just because of the price. They make more money with fewer users. Except, now they ar
by clairity 8y ago
> "sales revenue is up but volumes are down for the last few years and not just because of the price. They make more money with fewer users. Except, now they are making not as much money as they hoped with even less users than they expected. They squeezed too hard and the numbers no longer add up."
these sentences (among others) contradict each other. you first seem to imply that apple understands the price elasticity (the marginal measure of price vs. quantity) of their products, and then you claim the opposite.
i also don't like the rising prices of apple products, but you've made no rational argument for why they should lower prices. you're just saying that sales volume is down, so that means they should changes things to restore that volume. it's also not obvious that services revenue needs more sales volume to be successful. none of these are obvious proxies for net income.
apple is a profit-driven company (vs. a revenue or market-share driven one), and among the most successful in history. you may not agree with their strategy, but give them a little credit/benefit of the doubt here that they might understand what's going on enough to not ignore price elasticity.
- jillesvangurp 8y agoThere is no contradiction. They squeezed too hard and they lost more users than they thought they could get away with. Price elasticity is working just as you'd expect. Raise prices, less users, less up-sales. Apple apparently thought differently. Hence the stock is down. There's a contradiction in their stated strategy of making more revenue through services and their price strategy which is reducing the number of users they can sell these services to.