iPhone(y) Baloney: Brisk sales rebut notion Apple’s revolutionary device is out of gas

“Who says Apple needs new gadgets to surprise?” Garett Sloane reports for The New York Post. “The tech titan said yesterday it sold more than 30 million iPhones last quarter, a number that blew away estimates and showed that the company’s flagship device is still on top.”

“Wall Street expected a slight decline for the premium phone, and some forecasts said Apple would sell around 25 million units. Instead the company sold 31.2 million,” Sloane reports. “Sales were boosted by the low-cost older-generation models, a segment of the smartphone market that Apple needs to command if it is to grow its market share. Indeed, reflecting Apple’s success in selling its lower-cost iPhone, the average selling price of the line of smartphones last quarter fell 4 percent to $580 — the first time that number was below $600 since 2009.”

Sloane reports, “Industry watchers expect Apple to take the battle over lower-cost smartphones a step further and produce a dedicated budget line of iPhones to compete with the likes of the Nokia Lumia 521, a Windows phone that just went on sale for an unsubsidized $120.”

MacDailyNews Take: Apple won’t compete at those levels. Such devices would produce a crap experience for users and Apple, unlike beleaguered Nokia and Microsoft, simply won’t inflict such garbage upon customers. An iPhone at triple the price would destroy what’s left of Nokia. And Microsoft’s moribund Windows Phone. And beleaguered, dead company walking Blackberry.

Sloane reports, “On top of beating projections for phone sales, Apple topped earnings and revenue expectations, and gross margins were at the high end of forecasts. Apple generated $35.3 billion in revenue, earning $7.47 a share — both beating estimates. Margins were 36.9 percent.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Citymark” for the heads up.]

Related articles:
Apple’s stellar iPhone sales dumbfound ‘experts’ – July 24, 2013
Yet again, many Apple analysts were wrong: People still prefer iPhone – July 23, 2013
Record iPhone sales power Apple’s third-quarter, shares climb – July 23, 2013
MacDailyNews presents live notes from Apple’s Q313 Conference Call – July 23, 2013
Apple beats Street on record quarterly iPhone sales – July 23, 2013

16 Comments

  1. By all means, fire up the photocopiers in Korea and Redmond, WA. Customers still demand an exceptional experience. Which they will never get on Windows Phoney 7 or Andbloid.

    1. Photocopiers, not any more. They now have 3D printers and with a little paint, people will think you have the real experience with the real deal. Innovate and paint it with glow in the dark colors this time.

  2. So What??? Apple beat inflated last minute expectations in pretty much all areas…. iPad sales were down….. So there.

    Apple is DOOMED. DOOMED I say!!!! All the MIcrosoft and Android lovers say so. We just have to keep repeating the mantra over and over. And pick at any little factoid that can be used negatively against Apple. Ignore the real facts and chant on. !!!!
    Apple will die (one day) and it will happen soon ( the next day, year, decade or so)… So there Apple.. your doomed.

    Wanders off…. muttering to themselves…… I love my new android phone, really I do…

    LOL heavy /s

    1. Amazing what people can talk themselves into if they want to believe it strongly enough. Of course people say that about people who love Apple products too but in this case the love and glowing user experience perception is deserved. Even with the occasional, but quickly corrected, misstep like Maps.

  3. So easy for for SamScum to copy Apple’s products. What is the problem SamScum? Why can’t SamScum copy Apple’s profit margins? Answer: Becsuse SamScum’s products SamSuck and people are waking up to that FACT of SamShit’s products.

    1. You sound Ridiculous. Are you on Apple’s payroll or something. You should step outside and get some air. I agree with the notion: Samsung copied Apple-circa 2011-12, its pretty obvious, but have you actually picked up a high end Samsung device in 2013 (please don’t impulsively respond with a lie). You’re fooling yourself if you honestly believe that the Galaxy S3 or S4 is similiar in anyway to the Iphone 5. I doubt Apple is going anywhere they have a solid ecosystem with solid devices.

  4. What the Analysts fail to take into account, is the 90% retention rate of prior iPhone owners and the 20-30 % or so capture rate for new iPhone buyers.

    Early 4S buyers will reach end of 2 year contact in Sep/October 2013. TMO has moved to LTE in many markets. Look for migration away from ATT, if they offer a free 5S with trade in of a 4S and then you just pay $20/mo to buy the phone, with attractive rate plan. I have been happy with TMO. only problem is some data coverage gaps on mainland in the sticks. The new “yearly” TMO Upgrade plan looks interesting.

  5. Sales going up and beating their expectations isn’t good enough apparently. They moan that margins have gone down but then endlessly push for apple to launch every cheaper devices with ever lower margins as being the only way to turn things around. They don’t know what they’re talking about and contradict themselves. As I posted elsewhere, reality is unimportant, their narrative is all that matters to these so called expert analysts.

    1. The street makes money when the stock price moves. AAPL is an easy stock to manipluate so lots of money to make. The street sees value in in growth companies almost regardless of profit (AMZN). It’s not what have you done for me lately, it’s what will you do for me tomorrow. Apples high gross profit contradicts the norm and shouldn’t leave room for growth. Apple is unlike any previous company and analyst don’t know how to predict where the company is going, what their next move is, or how many devices they will sell. For the most part analyst ‘expectations’ are generally worthless when it comes to AAPL.

      1. Prediction is one thing, but contradicting yourself is just stupid. It’s obvious that they just want people buying and selling all the time, but it’s got to the point now with Apple particularly that what they say seems to have no basis in reality.

  6. Years ago, there were fake cell phone antennas that you could buy to put on your car to look like you had a car phone. Now there are segments of the population who are buying cheap Android phones that allow them to look like they have a smart phone like the iPhone.

  7. MDN is probably right in that Apple will not compete at the “cheap” level in terms of producing dedicated cheapo devices. But clearly, Apple IS going to compete at cheaper-price points simply by continuing to sell outdated iPhone models at those price points.

    And once again, it has a winning strategy – would you rather spend $low-price on a feature-poor device made by someone else, or on an iPhone which still has the features which six months ago ruled the world, but at a much higher price?

    Apple’s incremental philosophy has been evident in all areas. Instead of throwing all possible “wow” features into its devices at one go, it usually adds them incrementally as a previous model begins to run out of steam.

    Looks like it’s employing the same strategy where pricing is concerned. Samsung and gang have lorded over the cheaper end of the market while Apple has stayed out simply because it has been able to sell stuff in huge quantities despite the much higher prices it charges.

    It’s still doing that – but now it’s beginning to make a move in the (slightly) cheaper market simply by continuing to offer the older models but at cheaper price points.

    While Samsung and gang are probably strategizing on how to make a dent in Apple’s high-end monopoly, Apple is fast beginning to come up behind them in their low-end bastion.

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