New comments on the iPhone from Apple's Chief Operating Officer discuss high prices



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As this weekend shows, the world of smartphones is a relentless machine. You innovate or you are left behind. With the emergence of new technologies, improved handsets and more features that consumers are expected to demand, Android manufacturers have control of the future.

The Apple logo is visible on a mobile phone. (Photo by Omar Marques / SOPA Images / LightRocket via Getty Images)Getty

As for Apple, the glaring lack of real new ideas in the phones expected in 2019 the announcement as a future without innovation in the short term, which will continue to weigh on its finances. Without historical innovation, the high price of a new iPhone is difficult to sell. It's a problem that Apple is perfectly aware of, and no more than Jeff Williams, Director of Operations at Apple. & nbsp;Killian Bell of Cult Of Mac reports his comments:

"It's something we're very conscious of," Williams said on Feb. 22, during a Q & A session at Elon University. "We do not want to be an elitist company … We want to be an egalitarian company, and a lot of work is going on in developing markets. "

During his speech, Mr. Williams spoke of the senseless growth of Apple since joining the company as global purchasing manager in 1998. The iPhone has been instrumental in this evolution, but with the decline in the demand for the latest models, the days are over.

What happens next? well Apple can try new prices thanks to discounts and exchangesbut all indications are that current price levels will be maintained. If Apple wants to increase unit sales, the price must go down or new desirable features need to be added.

A new iPhone is an expensive device to buy, and rising prices of flagship devices of brands similar to Samsung follow a similar trend. But the latest phones all tend to scream about new features, design touches, technological changes to make them stand out. We must argue in favor of higher prices: throw away first-generation folding equipment and the financial penalty imposed on the first-time adopter is $ 2,000.

But where is the material that could justify the first adopter's penalty in the iPhone? I have already explained that the iPhone incorporates advanced technology into a user-friendly package, but there is still a generation or two behind the competition and vendors should have fixed the bugs and amortized the costs. The general assumption about Apple's iPhone rates is that Tim Cook and his team prefer to keep a healthy margin on the phone to ensure high earnings and profits.

No doubt in the iPhone X 2018 and certainly in the handsets iPhone XS, XS Max and XR 2019 Apple raised the price of the sticker to maintain these margins& nbsp; when adding (finally) OLED screen technology, reducing edges, switching to a gesture-based user interface, and updating the system-on-a-chip.

The margin has been maintained, but unit sales dropped from about 93 million to 84 million in the last calendar quarter of 2018.

And that's where the problem of a naked closet begins for 2019. Apple does not have any of the usual indispensable technological elements. It is still struggling to deliver the promised wireless charging system announced in 2017. What about 5G communications and reverse charging, flip-flops and triple-lens cameras with a range of devices, Apple will be late for the game with new technology … A new technology that quickly becomes a table issue in the making of Android.

Without innovation, it will be extremely difficult to reverse the trend of iPhone sales while maintaining the income and margins expected by investors.

Something must give.

Learn more about the lack of new technologies planned for the iPhone 11

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As this weekend shows, the world of smartphones is a relentless machine. You innovate or you are left behind. With the emergence of new technologies, improved handsets and more features that consumers are expected to demand, Android manufacturers have control of the future.

The Apple logo is visible on a mobile phone. (Photo by Omar Marques / SOPA Images / LightRocket via Getty Images)Getty

As for Apple, the glaring lack of real new ideas in the expected handsets of 2019 leaves it a future without innovation in the short term, which will continue to weigh on its finances. Without historical innovation, the high price of a new iPhone is difficult to sell. This is a problem that Apple is well aware of, and as much as Jeff Williams, director of operations at Apple. Killian Bell of Cult Of Mac reports his comments:

"It's something we're very conscious of," Williams said on Feb. 22, during a Q & A session at Elon University. "We do not want to be an elitist company … We want to be an egalitarian company, and a lot of work is going on in developing markets. "

During his speech, Mr. Williams spoke of the senseless growth of Apple since joining the company as global purchasing manager in 1998. The iPhone has been instrumental in this evolution, but with the decline in the demand for the latest models, the days are over.

What happens next? Well, Apple may be trying new prices through rebates and rebates, but all indications are that current price levels will be maintained. If Apple wants to increase unit sales, the price must go down or new desirable features need to be added.

A new iPhone is an expensive device to buy, and the price increase of flagship devices of brands similar to Samsung follows a similar trend. But the latest phones all tend to scream about new features, design touches, technological changes to make them stand out. There is also a need to advocate for price increases: discard first-generation folding equipment and the financial penalty for the first-time adopter is $ 2,000.

But where is the material that could justify the first adopter's penalty in the iPhone? I have already explained that the iPhone incorporates advanced technology into a user-friendly package, but there is still a generation or two behind the competition and vendors should have fixed the bugs and amortized the costs. The general assumption about Apple's iPhone rates is that Tim Cook and his team prefer to keep a healthy margin on the phone to ensure high earnings and profits.

It can be argued that in the 2018 iPhone X and certainly in the iPhone XS, XS Max and XR handsets of 2019, Apple raised the price of the sticker to maintain these margins while adding (finally) the technology of OLED screen, reducing contours, switching to a gesture interface, and updating the system on a chip.

The margin was maintained, but unit sales increased from approximately $ 93 million to $ 84 million in the last calendar quarter of 2018.

And that's where the problem of a bare cabinet arises for 2019. Apple does not have one of the essential technological elements that one can have. It is still struggling to deliver the promised wireless charging system announced in 2017. What about 5G communications and reverse charging, flip-flops and triple-lens cameras with a range of devices, Apple will be late for the game with new technology … A new technology that quickly becomes a table issue in the making of Android.

Without innovation, it will be extremely difficult to reverse the trend of iPhone sales while maintaining the income and margins expected by investors.

Something must give.

Learn more about the lack of new technologies planned for the iPhone 11

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