3 ms·

Market saturation and supply chain constraints weren't the same. No one is going to drop a 1000 USD on a phone right now with many businesses outright closed

scarface74 6y ago
If only Apple had the foresight to release a new $399 phone so people wouldn’t have to spend $1000....
- mav3rick 6y ago
  Yes people go to Apple for the mid range phone. The entire brand is based on perceived or actual premium. The SE doesn't get you that. Your snark isn't going to change their numbers either. Also btw the argument applied to spending on luxuries. No one is going to upgrade on phones in this atmosphere.
  - scarface74 6y ago
    The original SE was more in demand than Apple expected. https://www.fool.com/investing/general/2016/04/27/apple-inc-facing-iphone-se-shortage.aspx https://www.fool.com/investing/general/2016/04/27/apple-inc-... Do you think people who prefer an iPhone are going to buy an Android phone or buy a cheaper iPhone? Also, Apple sells the iPhone XR and iPhone 11 for less than $1000.
    - three_seagrass 6y ago
      Which is a worthless statement since Apple neither released original projections or existing sales. A signal like running out of inventory would confirm this but that is not the case.
      - scarface74 6y ago
        So you think Apple just decided to release a new iPhone SE even if it didn’t know the market? Why would Apple - led by the supply chain master himself - admit during earnings that they miscalculated demand leading to lower sales if they were merely trying to spin a positive narrative? Why would it be a positive narrative that people wanted to spend less money and not more?
        three_seagrass 6y ago
        That's a straw man and a bunch of loaded questions. I think you're trying to make the statement into proof of something that it is not.
  - three_seagrass 6y ago
    You're right in that the SE is Apple cannibalizing its own brand, the same way Starbucks did in the 2000s. Apple is the quality leader on the market, not cost leader, so the SE is not good indicator of the direction a company that relies on brand is going. It's like Ferrari releasing a commuter vehicle. Sure it may sell a lot up front but it cannibalizes future sales.
    - scarface74 6y ago
      Apple sold a $399 iPhone SE in 2016. It’s not like the $399 iPhone SE is a lowend phone. It’s still faster than any Android phone sold today. In the iPod era it sold millions of $70 iPod shuffle’s alongside $350 hard drive based iPods. Apple has been selling the regular iPad for $329 for three or four years. You’re also not taking into account the concept of the “attach rate”. Once you buy an iPhone, Apple can make money off of you via services - iTunes, Apple Music, Apple Arcade, iCloud, the App Store, iBooks, etc. Thats not even counting other hardware like AirPods and the AppleTV. Cook admitted awhile back that the Apple Watch alone generates more revenue than peak iPod. Analyst think that the AirPods probably also make more than the iPods ever did.
      - mav3rick 6y ago
        Yeah, iPod competitors vs the largest mobile OS in the worls is not the same comparison. You are clearly a fan boy, no point engaging with logic here. You will clearly see when Apple numbers will go down this year. Not even your messiah Tim Cook of the House of Supply Chain can prevent that.
        scarface74 6y ago
        Obviously everyone’s numbers are going to go down this year. Does it really take a genius to figure out that Apple’s numbers will go down - especially since Apple already said that? But if you haven’t noticed, Apple’s “competitors” in the phone market haven’t actually been able to make any money in a decade. Only Samsung makes any real profit in the phone market (much less than Apple) but only because of their manufacturing arm - not their phones.

scarface74 6y ago

If only Apple had the foresight to release a new $399 phone so people wouldn’t have to spend $1000....

mav3rick 6y ago
Yes people go to Apple for the mid range phone. The entire brand is based on perceived or actual premium. The SE doesn't get you that. Your snark isn't going to change their numbers either. Also btw the argument applied to spending on luxuries. No one is going to upgrade on phones in this atmosphere.
- scarface74 6y ago
  The original SE was more in demand than Apple expected. https://www.fool.com/investing/general/2016/04/27/apple-inc-facing-iphone-se-shortage.aspx https://www.fool.com/investing/general/2016/04/27/apple-inc-... Do you think people who prefer an iPhone are going to buy an Android phone or buy a cheaper iPhone? Also, Apple sells the iPhone XR and iPhone 11 for less than $1000.
  - three_seagrass 6y ago
    Which is a worthless statement since Apple neither released original projections or existing sales. A signal like running out of inventory would confirm this but that is not the case.
    - scarface74 6y ago
      So you think Apple just decided to release a new iPhone SE even if it didn’t know the market? Why would Apple - led by the supply chain master himself - admit during earnings that they miscalculated demand leading to lower sales if they were merely trying to spin a positive narrative? Why would it be a positive narrative that people wanted to spend less money and not more?
      - three_seagrass 6y ago
        That's a straw man and a bunch of loaded questions. I think you're trying to make the statement into proof of something that it is not.
- three_seagrass 6y ago
  You're right in that the SE is Apple cannibalizing its own brand, the same way Starbucks did in the 2000s. Apple is the quality leader on the market, not cost leader, so the SE is not good indicator of the direction a company that relies on brand is going. It's like Ferrari releasing a commuter vehicle. Sure it may sell a lot up front but it cannibalizes future sales.
  - scarface74 6y ago
    Apple sold a $399 iPhone SE in 2016. It’s not like the $399 iPhone SE is a lowend phone. It’s still faster than any Android phone sold today. In the iPod era it sold millions of $70 iPod shuffle’s alongside $350 hard drive based iPods. Apple has been selling the regular iPad for $329 for three or four years. You’re also not taking into account the concept of the “attach rate”. Once you buy an iPhone, Apple can make money off of you via services - iTunes, Apple Music, Apple Arcade, iCloud, the App Store, iBooks, etc. Thats not even counting other hardware like AirPods and the AppleTV. Cook admitted awhile back that the Apple Watch alone generates more revenue than peak iPod. Analyst think that the AirPods probably also make more than the iPods ever did.
    - mav3rick 6y ago
      Yeah, iPod competitors vs the largest mobile OS in the worls is not the same comparison. You are clearly a fan boy, no point engaging with logic here. You will clearly see when Apple numbers will go down this year. Not even your messiah Tim Cook of the House of Supply Chain can prevent that.
      - scarface74 6y ago
        Obviously everyone’s numbers are going to go down this year. Does it really take a genius to figure out that Apple’s numbers will go down - especially since Apple already said that? But if you haven’t noticed, Apple’s “competitors” in the phone market haven’t actually been able to make any money in a decade. Only Samsung makes any real profit in the phone market (much less than Apple) but only because of their manufacturing arm - not their phones.