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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
by 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 agoApple 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 agoYeah, 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 agoObviously 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.
- mav3rick 6y agoShifting goal posts are we. Your original point was how Apple will be fine amidst Covid-19. Now your point is how great it is compared to Android vendors. Yes I stated what anyone would deem the obvious take. You posted a rebuttal which you're now recanting.
- scarface74 6y agoI was responding to the following 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. That has nothing to do with Apple being “fine” for Covid.