Why was iPhone X so successful at $999 despite a slew of fake news?

“Reporting by Bloomberg, the Wall Street Journal and Japan’s Nikkei created and perpetuated an absurd fiction that Apple’s iPhone X was a ‘disappointing,’ ‘overpriced’ product with ‘weak’ sales, when it reality it remained Apple’s most popular iPhone every week this quarter across 14 percent growth in iPhone sales in a business where no other company ‘mostly’ sells their most expensive flagships, and where overall demand for smartphones is actually shrinking globally,” Daniel Eran Dilger writes for AppleInsider.

“How did these major financial newspapers fall on their face so sloppily on a story that wasn’t really that hard to get right? In part, it was because the various reporters working for them refused to admit they really know very little about Apple’s complex global supply chain — which they attempted to decipher with the sophistication of a swinging sledgehammer,” Dilger writes. “Nikkei claimed to know of ‘channel check’ data revealing ‘disappointing holiday season sales’ for iPhone X back in January, before it was revealed that iPhone X was the most popular smartphone in that quarter as well. That was followed by a report by Tripp Mickle for the Wall Street Journal who claimed Apple ‘is slashing planned production’ of iPhone X ‘in a sign of weaker-than-expected demand.'”

“Writing for Bloomberg, Mark Gurman was so confident about ‘lackluster’ iPhone sales that he actually stated, ‘”Apple Inc. earnings this week will confirm what most investors have finally accepted: The iPhone X didn’t live up to the hype,'” Dilger writes. “But the ‘hype’ being shoveled out by Bloomberg and other financial papers —not just some casual Android bloggers — was not that iPhone X would take over the entire world as the best selling iPhone, but that its “$999 starting price was too much for some consumers,” an idea Gurman repeated ad nauseum since the product went on sale.”

Much more in the full article – recommended – here.

MacDailyNews Take: Fake news operates on the principle that if you repeat a lie often enough, no matter how outlandish, some people will begin to believe it.

AAPL is like a buoy. Quick, it’s back on the surface! You there, analyst, and you, too, swim down and tug on the chain! Drag it under… lower, lower… Good! Now, quick, everybody jump on, and we’ll take a ride back up to the top again!MacDailyNews, January 9, 2012

At the most basic level, it’s extremely simple: Pump, then dump. Foment, then buy. Rinse, lather, repeat as the SEC sleeps.MacDailyNews, April 26, 2012

In what has become the Nikkei’s annual shocker: Apple is decreasing production in the quarter after Christmas. Cue the horror!

Everything in this Nikkei article is conjecture, estimates, and FUD.

This report (as with many of Nikkei‘s Apple-related reports) smacks of a plant designed to depress the price of AAPL. Plain and simple. And Nikkei seems to be the preferred place to do it.

Those who fail to learn from history are doomed to lose money in the stock market. History lesson below. — MacDailyNews, December 30, 2016

Profit from the painfully gullible.MacDailyNews, December 26, 2017

SEE ALSO:
Uh, yeah, about those iPhone X ‘concerns’ from analysts: Never mind – May 1, 2018
Apple beats Street with best Q2 ever – May 1, 2018
Apple’s iPhone X isn’t selling well – or is it? – April 21, 2018
Apple’s iPhone X to be discontinued this year, analyst claims – April 20, 2018
Morgan Stanley: Apple stock may fall on ‘materially’ weaker iPhone sales – April 20, 2018
Apple’s iPhone X made 5 times the profit of 600 Android OEMs combined – April 18, 2018
Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Bernstein: Ams AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018
Apple’s iPhone X is the UK’s most popular smartphone – April 9, 2018
Apple’s iPhone X sales continue to disappoint, some analysts say – March 22, 2018
Ignore the iPhone X naysayers – March 10, 2018
Will the naysayers admit they were wrong about Apple’s iPhone X? – February 5, 2018
Do iPhone X sales spell trouble for Apple? – January 30, 2018
Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
Nikkei: Apple to decrease iPhone production 10% in first quarter of 2017 – December 30, 2016
Nikkei proclaims ‘iPhone 7’ Dead On Arrival; bemoans Apple’s ‘lack of innovation’ – May 12, 2016
Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
Did Apple reduce 4-inch Retina display orders due to improving yields? – January 15, 2013
Analysts: iPhone 5 demand ‘robust;’ ignore the non-news noise – January 15, 2013
Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
Apple iPhone 5 production cut signaling a new product release? – January 14, 2013
Apple drops to 11-month low on old reports of component cuts – January 14, 2013
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
Apple shares drop below $500 after reported cuts in iPhone 5 parts orders – January 14, 2013

12 Comments

  1. Because the SEC is just a name, nothing else.
    Most likely on the take.
    Plus the globalists own all new media and use them to get even richer. So nothing will change for the short term.

  2. Now that it is clear that a $999 phone is doing well, a $699 LCD iPhone X will indeed spur a super cycle. Throw in a $1149 OLED iPhone X Plus and the ASP will stay above $700, and sales will be off the charts. With refreshed and new products in other categories thrown into the mix, Apple’s money machine will continue unabated.

  3. The Guardian, which was once quite a supporter of Apple, now always manages to find a way of printing a negative Apple headline.

    During the last couple of weeks they have been eagerly printing reports of rumoured slow iPhone sales. When Apple finally revealed that iPhone sales had actually done very well and increased YoY, The Guardian chose the headline “Apple delivers best second quarter ever, despite sales worries”.

    They could have decided to headline the fact that all those previous rumours were completely untrue, but instead they used a headline which could be taken to mean that the overall results were good despite the fact that iPhone sales were disappointing ( even though in reality they turned out to be excellent).

  4. The article makes reference to this but doesn’t say it directly: as data costs go down, you can pay more each month and your bill stays the same.

    The only reason I don’t have an X yet is my 6s plus still does what I need, but when I upgrade, it will be top of the line. With a 36-48 month lifecycle, it will be worth it.

  5. Shouldnt we call it “collusion”? A month before each quarter you can always expect some sort of fake news headline to make the shares drop. It’s no longer the headline makers fault…it’s the sellers fault. If Buffett dumps his shares, then maybe worry, but if he sits, then I sit.

  6. “Fake news operates on the principle that if you repeat a lie often enough, no matter how outlandish, some people will begin to believe it.”

    Yep. The way I state it is: if you scream a lie loud enough and long enough, some people will accept it as the truth.

  7. Many in the lazy media will just regurgitate others sloppy reporting, so the supply chain rumors turn into “consensus fact” which means it isn’t “fact” nor that just becuase most start to believe it that means it is accurate!

    Anyone denying the new obvious “facts” are morons posting click bait! Ha!

    One must wonder about a few “reporters” and what their bank account looks like. Unethical as the wind Samsung anyone?… or -insert Chinese manufacturer here”…

    I am beginning to wonder more and more about this…

  8. Why do so many people hate Apple for selling expensive iPhones? No one is being forced to buy them. They’re available for those consumers who can afford them. There’s no reason for critics to curse Apple. If those $1000 iPhone Xs don’t sell, then Apple will simply lose money. There’s always that risk. I just think it’s stupid for people to keep claiming that no one will buy an iPhone X because it’s TOO expensive. Why should they even care what they cost if they’re not going to buy one.

    I’m certainly not raging against Bugatti because I can’t afford a Chiron. I say, more power to those who can afford one. Do I think Bugatti should stop building those expensive cars? Absolutely not. They’re something to aspire to owning.

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