4 ms·

Phones are moving towards commodities even apple found this when the X got push back at $1000 per unit.

skohan 8y ago
I think the price is a mistake, but I don't think it's "failure" reflects a weakening Apple's of brand competitiveness as much as it is a sign of the relative maturity of smartphone hardware. In other words, people are buying phones less often, because phones for 3-4 years ago are still quite capable of meeting the needs of most users, so people are naturally going to start buying phones less often. I suspect Apple was very aware of this trend, and the price increase was an effort to increase margins to make up for an expected decrease in unit sales. After all, Samsung also indicated lower guidance on their Smartphone numbers for this year, so Apple is not the only company affected by this trend. Maybe they missed the mark a bit, and a significant number of potential customers chose not to upgrade this year, but I seriously doubt those customers turned around and bought an Android instead. I suspect they will just get plan to get another year out of their 6S and wait for what comes out this year.
- have_faith 8y ago
  > I suspect they will just get plan to get another year out of their 6S and wait for what comes out this year This is the situation I'm in. Have a 6s that I'm not in a rush to upgrade until something appealing appears. It's plenty fast enough for everything I do. I actually started looking at Android alternatives thinking I could get a high-end phone with a removable battery but learned that's not a real thing anymore. Plus I don't like the idea of using too many Google services. Still not sure what my upgrade path with be yet. Maybe an iPhone 8 but it feels like I'm just getting the same phone as I've got but without a headphone jack.
georgeecollins 8y ago
They can still charge a premium over any other phone manufacturer, and they sell at the about the same volume. They have a lock in that seems likely to protect that premium for the foreseeable future. As long as they can charge a premium they get a nice profit margin.

I think the price is a mistake, but I don't think it's "failure" reflects a weakening Apple's of brand competitiveness as much as it is a sign of the relative maturity of smartphone hardware. In other words, people are buying phones less often, because phones for 3-4 years ago are still quite capable of meeting the needs of most users, so people are naturally going to start buying phones less often. I suspect Apple was very aware of this trend, and the price increase was an effort to increase margins to make up for an expected decrease in unit sales. After all, Samsung also indicated lower guidance on their Smartphone numbers for this year, so Apple is not the only company affected by this trend. Maybe they missed the mark a bit, and a significant number of potential customers chose not to upgrade this year, but I seriously doubt those customers turned around and bought an Android instead. I suspect they will just get plan to get another year out of their 6S and wait for what comes out this year.

have_faith 8y ago
> I suspect they will just get plan to get another year out of their 6S and wait for what comes out this year This is the situation I'm in. Have a 6s that I'm not in a rush to upgrade until something appealing appears. It's plenty fast enough for everything I do. I actually started looking at Android alternatives thinking I could get a high-end phone with a removable battery but learned that's not a real thing anymore. Plus I don't like the idea of using too many Google services. Still not sure what my upgrade path with be yet. Maybe an iPhone 8 but it feels like I'm just getting the same phone as I've got but without a headphone jack.

georgeecollins 8y ago

They can still charge a premium over any other phone manufacturer, and they sell at the about the same volume. They have a lock in that seems likely to protect that premium for the foreseeable future. As long as they can charge a premium they get a nice profit margin.