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Weak iPhone sales force Apple to make more dangerous decisions




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Do consumers lose sight of expensive iPhones in the face of the important festive sales season? Has iPhone sales finally forced Apple into a new direction? Turn Your Company's History from a History of Popular Hardware into Software and Services?

Apple's CEO Tim Cook Speaks New Products at a Launch Event at the Brooklyn Academy of Music October 30, 201

8 in New York (Photo by Stephanie Keith / Getty Images) Getty

Let's start with Apple's decision that sales of the iPhone will no longer be reported iPhone Since the introduction of the iPhone 6 and iPhone 6 Plus, the story of rising numbers was no longer the actual sales, but to the increasing margins and the rising average selling price.

If you Succeeding, succeeding in need of larger nu With the iPhone XS Plus, which in some configurations is $ 1500, the margin for larger margins and higher selling prices in the market is quite expensive. Hiding the iPhone numbers means that the focus can be on increasing revenues from software and services, not hardware sales.

I suspect Apple thought this would be a fairly long handover period, but reports from the reduced iPhone XR production line this week confirm the slowdown in demand for the "affordable" $ 750 smartphone in a shop of Moscow re: Store (Photo by Sergei SavostyanovTASS about Getty Images) Getty

We must not forget that the usual rush to preorder the iPhone XR has not led to "sold out" signs in the market first day. In fact, it took four days for the buyers to be notified of a delivery delay. After this soft start, Apple reportedly shortens the production line of the iPhone XR from 60 to 45 lines. Even if the initial demand should be met, the reconfiguration of capacity is a noticeable incision.

What is selling well? Last year's iPhone 8 and 8 Plus, now offering a $ 100 discount over the starting price. Apple's push for higher-selling iPhones with more margins and more revenue carries a risk as consumers move to cheaper cell phones.

The home screen of an Apple iPhone 8 plus can be seen in this photo illustration on August 14, 2018. (Photo by Jaap Arriens / NurPhoto via Getty Images) Getty

Last year, the iPhone X's sales were lower than its expected sales, with the balance between the iPhone 8 and the iPhone 8 Plus. The iPhone XR (probably the iPhone 9) replaces the iPhone 8 family in the portfolio. If XR sales are as weak as analysts suspect, and sales of XS and XS Max are just as expected (setting up the iPhone X), then Apple's decision to hide sales might come just when the iPhone curve goes down.

Can Apple rely on revenue from services and software to replace hardware margins? This could be a tough one, as 59 percent of Apple's revenue comes from the iPhone. At 15 percent, this is a quarter of that.

What happens to Apple's efforts to increase revenue from services as fewer devices are sold? Because you still need hardware to run your customized services.

Tim Cook has raised Apple to a trillion dollar company. Can he continue his dangerous decision to change the storyline away from the iPhone?

Read more about the missed opportunity that Apple might experience in 2018 …

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How important approaches to festive sales periods are: are consumers losing money on expensive iPhones? As Apple's iPhone sales break new ground and can Tim Cook's Apple change its history from a popular hardware story to a change in software and services?

Tim Cook, Apple's CEO, speaks during his inaugural event at the Brooklyn Academy of Music on October 30, 2018 in New York City (Photo by Stephanie Keith / Getty Images) Getty

Let's start with Apple's decision not to report its sales on the iPhone iPhones since the launch of the iPhone 6 and the iPhone 6 Plus, the story of rising numbers was no longer included The actual sales is one of the rising Ma and the rising average selling price.

If you want to succeed, you need bigger numbers. Because the iPhone XS Plus is $ 1500 in some configurations, the margin for larger margins and higher selling prices in the market is quite expensive. Hiding the iPhone numbers means that the focus can be on increasing sales of software and services, not on hardware sales.

I suspect Apple was of the opinion that this would be a fairly long handover period, but this week was reported by a decline in the iPhone XR production line confirming the declining demand for the "affordable" $ 750 smartphone.

The official sale of iPhone XR smartphones in a Moscow Re: Store Store (Photo by Sergei SavostyanovTASS about Getty Images) Getty

Let's not forget that the usual onslaught to pre-order iPhone XR did not result in "sold out" signs on the first day. In fact, it took four days for the buyers to be notified of a delivery delay. After this soft start, Apple reportedly shortens the production line of the iPhone XR from 60 to 45 lines. Even if the initial demand should be met, the reconfiguration of capacity is a noticeable incision.

What is selling well? Last year's iPhone 8 and 8 Plus, now offering a $ 100 discount over the starting price. Apple's push for higher-selling iPhones with more margins and more revenue carries a risk as consumers move to cheaper cell phones.

The startup screen of an Apple iPhone 8 plus can be seen in this photo illustration on August 14, 2018. (Photo by Jaap Arriens / NurPhoto via Getty Images) Getty

Last year, the iPhone X's sales were lower than its expected sales, with the balance between the iPhone 8 and the iPhone 8 Plus. The iPhone XR (probably the iPhone 9) replaces the iPhone 8 family in the portfolio. If XR sales are as weak as analysts suspect, and sales of XS and XS Max are just as expected (setting up the iPhone X), then Apple's decision to hide sales might come just when the iPhone curve goes down.

Can Apple rely on revenue from services and software to replace hardware margins? This could be a tough one, as 59 percent of Apple's revenue comes from the iPhone. At 15 percent, this is a quarter of that.

What happens to Apple's efforts to increase revenue from services as fewer devices are sold? Because you still need hardware to run your customized services.

Tim Cook has raised Apple to a trillion dollar company. Can he continue his dangerous decision to change the storyline away from the iPhone?

Read more about the missed opportunity Apple might experience during 2018 …


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