Apple supplier Broadcom suggests older iPhone models are in demand

“Broadcom Inc Chief Executive Officer Hock Tan said the company’s wireless business performed better than expected due to demand for older smartphones from a North American customer,” Bloomberg reports.

“Broadcom reported fiscal fourth-quarter profit that topped Wall Street estimates on Thursday. Tan said ‘upside volumes of legacy phone generations from our North American customer’ helped the wireless division,” Bloomberg reports. “Tan didn’t mention Apple Inc by name, but the iPhone maker is Broadcom’s largest North American partner.”

“Upon releasing the latest iPhones, Apple cut the price of older models,” Bloomberg reports. “Apple sells the iPhone 7 for $449 and the iPhone 8 for $599, well below the $999 pricing of the iPhone XS.”

Read more in the full article here.

MacDailyNews Take: An iPhone for virtually everybody, all with handsome profit margins. YKBAID.

Exit question: Could more people than we think be afraid of iPhones without Home buttons; worried that they won’t be able to use them? We know this isn’t the case, as it’s extremely intuitive home to use a modern X-class iPhone (and iPad Pro), but that doesn’t mean less savvy iPhone owners aren’t opting to stick with the Home button paradigm for one more iPhone (that’ll they’ll own for some 3 or more years).

21 Comments

  1. To MDN:
    No, they are not afraid of the lack of the Home button, but they don’t like the sticker shock. – Particularly if there is a whole family replacing their phones.

    1. Great point about families. I have 3 kids, all with iPhones. They are moving to Androids next year. My wife and I have iPhone X’s and there simply is no money in the budget to buy them iPhones. It is far, far cheaper to get them Android phones. Everything they do with phones is available on that platform.

      1. You can take that strategy on further; get them PCs and buy their clothes at Walmart. The near term savings will be great. The big downside is your kids being social outcasts. But hey what do i know, i am 80 years old. I make sure my children and grandchildren stay in Apple products that are relatively current.

        1. If you look at the Apple market share vs Android market share in most markets but a few countries, going Android will certainly not make you a social outcast.

          Giving the kid an Android is (IMO) close to child abuse, but that is a completely different question.

  2. Nobody is afraid of iPhones without a home button.

    People are just smart enough to not pay $1200 or more for a damn phone.

    The four most recent people I know how have bought phones ALL went with either iPhone 7’s or Android. Two left iPhones to go to Android simply because of cost. The other two upgraded from 6S’ to 7’s. They would not even go to 8’s!!!

    Pipeline is a drooling moron thinking that regular folks are going to fork out in excess of $1000 to buy a phone.

    Dream on Pipeline, dream on.

  3. Yes, the overpricing issue is more critical than Apple might perceive (well, they already know it. Just pushed the envelope too far).
    As to MDN’s take, it probably has more to do with the touch ID. Consumers are a lot savvier and wiser today, not attracted by what they think are gimmicky features that they do not want to pay for. So many simply stopped buying new models and keeping the perfectly fine 7/+ and 8/+ at least for another year or so. I guess most of them have money to buy the new ones but they just do not feel like doing so, or see the need for it.

    1. Something face id is not is gimmicky..
      Its way more transparent and out of the way for the user..
      Autentications just happen so seamlessly !
      The swipe gestures are super fluid and more ergonomically efficient.

      As for me and i believe countless others… it is a god sent gift..
      as touch id only worked a small percentage of the time and we had to resort to password.
      Why?.. smudges on the home button or slight moiture on fingertips..
      there are tons of people who dont have perfectly dry palms and finger tips.

      So No.. the face id is not a gimmick and is way superior to finger id..
      And the consumer in this case is not savy enough to see that.
      In addition most people dont like change.. even if it is to the better.
      They rather stay with the satisfactory or even the compromised as long as it is familiar. Human nature for the most part.
      But once forced to adapt.. they the the light.

    2. Tim having pushed the envelope too far is false statements and misinformation.

      Fact..( matter of public record ). Apple’s gross margins have been historically more or less the same.. from Steves time to now.

      Expensive then, expensive now.

      Maybe, to some, the value proposition is not there. that is not the same as Apple being more greedy today than they were at Jobs time.
      Plus Apple has phones from 450 to 1500.. the line up is there.. pick the one that offers the right value for u.

      More thoughts below if u like to read ..

  4. Anyone who used BB10 will feel right at home. Apples swipe from the bottom to go to home is taken directly from that platform. Works great even if the iphone has no keyboard. Haha

  5. I agree with most people here. Apple simply got greedy. It’s not easily explainable the price tag of the iPhones Xx when compared with other hardware on the market. They are superior but the price is simply pornographic.

    1. Apple is no more greedy now than they were at Jobs time.
      And this is a fact. Not frenzied misinformation soread by FUD .
      Their gross margins are a matter of public record.. you are welcome to check them and see the hidtoric level and trend.

      Apple is not overcharging,.or being greedy any more than it has historically!
      It was expensive at Steves time …..it is expensive now.

      If u dont see the value.. that does not mean Apple is greedy.
      Is Porsche being greedy ? Is Mercedes? Are YSL or Prada or Rolex…etc?
      Apple is a public corporation.. fiduciary duty and mission : maximize profits. Everything else is the means.. if means prove to be wrong then they will adjust.!
      In 2 months we will know how they did..everything else stems from
      frenzied panic and FUD.

  6. Consumers buying older iPhones will work quite well for Apple’s Services strategy but iPhone ASPs will definitely take a hit. Wall Street won’t like that one bit. I don’t think the iPhone home button/Touch ID is a terrible thing, but all the latest Android smartphones will have much larger screens and use the latest screen unlocking technology. It certainly appears as though Apple has painted itself into an iPhone corner if all these rumors are true.

    Nothing lasts forever and maybe the iPhone’s time is coming to an end if consumers truly can’t afford those higher prices. I would think consumers will simply keep their iPhones for a longer period of time, but if a person’s budget doesn’t allow for those higher initial prices, then there’s nothing that can be done except to buy a cheaper smartphone. I don’t think consumers should waste money on things they don’t really need. I can reason that out even as an Apple shareholder. Apple basically needs to find new revenue streams if iPhones are truly falling out of favor. The iPhone has been milked by Apple for 11 years and maybe that’s pushing the limits of popularity for any one product. Fortunately, Boeing was able to get almost 50 years out of the 747. Good luck, fellow Apple shareholders. We’re pretty much screwed right now.

    1. How are you screwed.. ..as long term holder.
      Were you screwed a year ago at 170 $ …
      I was jumping in joy..
      i can see those getting at the highs feeling the pain.. but then again you get in at the high your horizon should be years not months or weeks.

      Just too much panic frenzy…. its unbelievable.
      And we are enabling it ourselves.
      It has come to a point where even Apple advertising and promoting their prodocts is picked on..
      “why is Apple advertizing,.. things must be real bad …. iphones should sell themselves..it is silly . ) .. is any other product subject to this craziness. ?
      If so I dont see it !.

      People should chill…
      Apple is not overcharging,.or being greedy any more than it has historically!
      Apples gross margins have not changed since Steve times…it was expensive then.. it is expensive now.

      Way too much panic!
      To a point where it is becoming a self fulfilling prophecy!

  7. MISSING 4″, 4″, 4″, 4″
    Clearly MANY are not in the look-at-me world of looking at themselves on their phones and just want a small simple iPhone. Did it ever occur to Pipeline that the marketing that came out years ago claiming Apple was inferior to Samsung because bigger is better was actually driven by Samsung. Clearly Pipeline, just like with many of his sku’s, does not have his eye on the ball, and ignores the customer base he brags about daily… one day Tim, you might just loose all those customers with your POOR leadership skills and follow-thru.

Leave a Reply to 7thheavenband Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.