Poor iPhone Forcing Sales Apple Into More Dangerous Decisions



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Are the vital festive sales period approaches, are consumers falling out of love with expensive iPhones? Has the growth in iPhone sales finally forced? And can Tim Cook's Apple change the story around its business from a story of popular hardware to one of software and services?

Tim Cook, CEO of Apple Speaks While Unveiling at 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 that it will not be necessary to report the sales numbers of the iPhone. The launch of the iPhone and the iPhone 6 and iPhone 6 Plus, the new generation of mobile phones, is growing.

If you're going to sell success, you need bigger numbers. With the iPhone XS Plus clocking in at $ 1500 in some configurations the scope for larger margins and higher selling prices is pretty much priced out the market. Hiding the iPhone numbers that can not be more important than hardware revenue.

I suspect that Apple thought it would be a long time, but this week the iPhone XR production line confirmed the $ 750 smartphone.

XR smartphone in a Moscow re: Store shop (Photo by Sergei SavostyanovTASS via Getty Images)Getty

Let's not forget that the traditional rush to pre-order the XR iPhone did not result in 'sold out' signs going out on the first day. In fact it was a time to be delayed shipping being notified to purchasers. Following this, Apple has reportedly cut the production line of iPhone XR's from 60 lines to 45.

What is selling well? Last year's iPhone 8 and 8 Plus, which comes with a $ 100 discount. Apple's push to higher selling iPhones with more money and more money.

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

Last year the iPhone X saw weaker than projected sales, with the balance made up by the iPhone 8 and iPhone 8 Plus. The iPhone XR (arguably the iPhone 9) steps up to replace the iPhone 8 family in the portfolio. If XR sales are as weak as analysts suggest, and the XS and XS are so far in line with expectations (set up the iPhone X), then Apple's decision to hide the figures may kick in the iPhone hits a downwards curve.

Can Apple rely on services and software to replace the hardware margins? That could be a tough ask given that 59 percent of Apple's revenue comes from the iPhone. Services is a quarter of that, at 15 percent.

What happens to Apple's drive to increase revenue? Because you still need hardware to run your bespoke services on.

Tim Cook has lifted Apple to be a trillion-dollar company. Can he keep it up with his dangerous decision to change the storyline away from the iPhone?

Apple to pivot around during 2018 …

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Are the vital festive sales period approaches, are consumers falling out of love with expensive iPhones? Has the growth in iPhone sales finally forced? And can Tim Cook's Apple change the story around its business from a story of popular hardware to one of software and services?

Tim Cook, CEO of Apple Speaks While Unveiling at 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 that it will not be necessary to report the sales numbers of the iPhone. The launch of the iPhone and the iPhone 6 and iPhone 6 Plus, the new generation of mobile phones, is growing.

If you're going to sell success, you need bigger numbers. With the iPhone XS Plus clocking in at $ 1500 in some configurations the scope for larger margins and higher selling prices is pretty much priced out the market. Hiding the iPhone numbers that can not be more important than hardware revenue.

I suspect that Apple thought it would be a long time, but this week the iPhone XR production line confirmed the $ 750 smartphone.

XR smartphone in a Moscow re: Store shop (Photo by Sergei SavostyanovTASS via Getty Images)Getty

Let's not forget that the traditional rush to pre-order the XR iPhone did not result in 'sold out' signs going out on the first day. In fact it was a time to be delayed shipping being notified to purchasers. Following this, Apple has reportedly cut the production line of iPhone XR's from 60 lines to 45.

What is selling well? Last year's iPhone 8 and 8 Plus, which comes with a $ 100 discount. Apple's push to higher selling iPhones with more money and more money.

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

Last year the iPhone X saw weaker than projected sales, with the balance made up by the iPhone 8 and iPhone 8 Plus. The iPhone XR (arguably the iPhone 9) steps up to replace the iPhone 8 family in the portfolio. If XR sales are as weak as analysts suggest, and the XS and XS are so far in line with expectations (set up the iPhone X), then Apple's decision to hide the figures may kick in the iPhone hits a downwards curve.

Can Apple rely on services and software to replace the hardware margins? That could be a tough ask given that 59 percent of Apple's revenue comes from the iPhone. Services is a quarter of that, at 15 percent.

What happens to Apple's drive to increase revenue? Because you still need hardware to run your bespoke services on.

Tim Cook has lifted Apple to be a trillion-dollar company. Can he keep it up with his dangerous decision to change the storyline away from the iPhone?

Apple to pivot around during 2018 …

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