“During its earnings call yesterday, Apple revealed that its quarterly revenue for fiscal 2019’s Q1 (which ended on December 29, 2018) was down by 5 percent compared to a year ago, at just over $84 billion,” Abhimanyu Ghoshal writes for TNW. “t also shed light on why that happened: people bought fewer iPhones.”
“The problem isn’t only about Apple charging a premium for its devices, but also its failure to adjust pricing for other markets. For reference, the iPhone XS Max starts at $1,110 for the 64GB variant in the US. In India, it will set you back by more than $1,500,” Ghoshal writes. “That’s set to change: CEO Tim Cook told Reuters this was a major issue particularly in countries whose currencies weakened as the US dollar got stronger, and so the company will tweak their pricing strategy for its flagship phones from here on out: ‘…as we’ve gotten into January and assessed the macroeconomic condition in some of those markets, we’ve decided to go back to more commensurate with what our local prices were a year ago in hopes of helping the sales in those areas.'”
“With that, Apple could have a chance to earn more from mobile device sales internationally this year,” Ghoshal writes. “But it remains to be seen what the smartphone market looks like by the time September – which is when the company unveils its iPhones each year – rolls around.”
Read more in the full article here.
MacDailyNews Take: The “S” year concept is self-defeating. Apple basically labels their flagship iPhones as “no big deal” every other year. Apple should have ditched their stupid “S” naming scheme many years ago. They never should have started it, in fact.
Apple already knows how to name them, via their MacBook lines. Name them like this:
• 4.7-inch iPhone (2019) (white, black, blue, yellow, coral, red)
• 5.8-inch iPhone (2019) (silver, space gray, gold)
• 6.5-inch iPhone (2019) (silver, space gray, gold, rose gold)
Plus, every year should offer a unique color scheme that is not replicated for at least five years so the newest iPhones are readily identifiable. Pooh-pooh it all you want, but many people not only want the latest tech, but they want others to know that they have the latest tech. An unique “brushed copper” or whatever color option – anything that says “This Year’s iPhone” at a glance – would sell better than yet another bland “S” model, regardless of processor and camera upgrades. The fact is that vastly more people care more about being able to brandish the latest iPhone than what’s inside it. Call it superficial or whatever, but its what sells.
If Apple simply did as we’ve described above – name them right (not idiotically tagging them as incremental every other year) and offer a unique, identifiable look – they’d sell more iPhones, without changing prices a whit.
Instead, they’re stupidly naming them after “fast cars,” tagging them with the scarlet “S” and a random “R,” making their flagships (XS and XS Max) look the pretty much the same as last year (yes, Max is bigger, but an XS looks virtually identical to an X; it’s no surprise that the XS is outsold by the different looking XS Max and XR), creating confusion in the marketplace and reducing the impetus to upgrade.
Apple SVP Phil Schiller’s disturbing confession – October 31, 2018
Phil Schiller talks iPhone Xr, Apple product naming, and much more – October 22, 2018
Apple’s inexplicably awful iPhone naming schemes – September 26, 2018