iPhone X iphone X sales not living up to expectations

[nia820]

I think iPhone X is a good phone, but not $1,000 worth. It should have been priced around $800. And a plus iPhone x model could have been $1000.

But Apple isn't dying anytime soon. Most people buy iPhones for the name and design. All the other stuff we tech enthusiast care about doesn't matter to the average consumer.

 

[The-Real-Deal82]

I have no idea what the expectations were for the X to be honest? Were they expecting it to be the mainstream contender where the majority of iPhone users buy it? I doubt it very much. Apple knew it was the niche offering and would sell in vastly lower numbers.

If it has sold less than the realistic expectation then that is something else entirely. We heard last year that the Apple Watch sold lower than expected and despite owning one myself I know that market has limits. Not everybody needs one and not everybody likes wearing a watch. It’s the same with the X. It’s a shiner version of the iPhone 8 with a different method to unlock it. It’s not some exciting difference and many consumers who continually buy iPhones will question why they need to pay more when an iPhone 8 offers an almost identical iOS experience?

I do think the price of the X variant will come down though. Apple were testing the water with demand but surely want their new technology in the hands of the core iPhone user. They like bragging about stats of how many people are using their features. Having an iPhone X in the hands of only one in ten iPhone users is not ideal from a business perspective.

 

[thesaint024]

I have no idea what the expectations were for the X to be honest? Were they expecting it to be the mainstream contender where the majority of iPhone users buy it? I doubt it very much. Apple knew it was the niche offering and would sell in vastly lower numbers.

If it has sold less than the realistic expectation then that is something else entirely. We heard last year that the Apple Watch sold lower than expected and despite owning one myself I know that market has limits. Not everybody needs one and not everybody likes wearing a watch. It’s the same with the X. It’s a shiner version of the iPhone 8 with a different method to unlock it. It’s not some exciting difference and many consumers who continually buy iPhones will question why they need to pay more when an iPhone 8 offers an almost identical iOS experience?

I do think the price of the X variant will come down though. Apple were testing the water with demand but surely want their new technology in the hands of the core iPhone user. They like bragging about stats of how many people are using their features. Having an iPhone X in the hands of only one in ten iPhone users is not ideal from a business perspective.

I think you’re right on several points except your last one. I think this is a clever strategy and good for business for this kind of brand focused company. It’s a halo effect on the whole line when you have a flagship. Even if they made a crazy $2,000 phone, it would benefit the brand regardless and bring up the equity of the iPhone brand as a whole.

I speculate that they expected the enthusiasts to drive sales initially and then slowly the people wanting the “best”, perceived or real, to start making up the majority of sales. Segmenting their market is smart business. Higher margin, high end products aren’t supposed to be the phone everyone buys. They made a ballsy move in creating a new tier, but it’s likely to meet their goals in the long run. There’s a phone for everyone now and they aren’t constrained with making one phone that fits everyone’s needs. It’s bold because they were likely to alienate some customers that feel entitled to Apple’s best offering at the price they’re used to, but segmenting this way is better for the brand and the bottom line.

The big unknown was how many buyers there would be for this new industry tier. Looks like they missed their initial target, but it’s probably made up with higher mix of their other phones. Don’t know how much you can read from this. A 4% drop isn’t that big considering the type of news this is (street really doesn’t like top line misses) and because bigger drops (and gains) happen for less relevant news. When selling a high end product, it’s not the worst press for consumers to hear that there are less out there and it’s more exclusive. Not my personal feelings because I’m indifferent to sales that don’t affect me. It’s just a marketing perspective.

 

[The-Real-Deal82]

I think you’re right on several points except your last one. I think this is a clever strategy and good for business for this kind of brand focused company. It’s a halo effect on the whole line when you have a flagship. Even if they made a crazy $2,000 phone, it would benefit the brand regardless and bring up the equity of the iPhone brand as a whole.

I speculate that they expected the enthusiasts to drive sales initially and then slowly the people wanting the “best”, perceived or real, to start making up the majority of sales. Segmenting their market is smart business. Higher margin, high end products aren’t supposed to be the phone everyone buys. They made a ballsy move in creating a new tier, but it’s likely to meet their goals in the long run. There’s a phone for everyone now and they aren’t constrained with making one phone that fits everyone’s needs. It’s bold because they were likely to alienate some customers that feel entitled to Apple’s best offering at the price they’re used to, but segmenting this way is better for the brand and the bottom line.

The big unknown was how many buyers there would be for this new industry tier. Looks like they missed their initial target, but it’s probably made up with higher mix of their other phones. Don’t know how much you can read from this. A 4% drop isn’t that big considering the type of news this is (street really doesn’t like top line misses) and because bigger drops (and gains) happen for less relevant news. When selling a high end product, it’s not the worst press for consumers to hear that there are less out there and it’s more exclusive. Not my personal feelings because I’m indifferent to sales that don’t affect me. It’s just a marketing perspective.

I think having an exclusive flagship only works long term if Apple put more effort into the lower tiers too. Right now the iPhone 8 and lower are incremental upgrades to a design that’s getting on for four years old. The iPhone 8 is a nice phone don’t get me wrong, but there will be expectations by consumers for that category to innovate too. They run the risk of people getting bored and trying something else.

If Apple start releasing something exciting for the mainstream again, the X variant will be a more successful and acceptable niche.

 

[boltjames]

I agree. And I have already said it before in other threads, the iPhone X is not for everyone not just because of the price point being a factor, likely because of what it has to offer in terms of newer technology. But I think that's why Apple offers the iPhone 6s/7 and a secondary iPhone 8 being announced under the iPhone X this year.

All of these iPhones offer the same operating platform and primarily execute the same functionality, it's just the iPhone X is demonstrating the future with Face ID in a new form factor gesture controls. The user just needs to justify what they can afford, not what they want.

Exactly right.

Both BMW and Kia make cars with wheels and engines that can take passengers from Point A to Point B.

But only one is a BMW, and it has features and luxuries that a Kia lacks. I'm not sure why so many people think that when it comes to Apple, they are entitled to have a BMW at Kia prices. If you can't afford the X, you can still get nicely from Point A to Point B in a SE or a 7.
[doublepost=1514471865][/doublepost]

If Apple start releasing something exciting for the mainstream again, the X variant will be a more successful and acceptable niche.

The "mainstream" is a politically correct way of saying "people who can't afford the jump from a $349 SE to a $999 X" so just say it plainly.

Apple will never be releasing something exciting for that budget customer. Apple innovation will live in the top two tiers to satisfy their luxury consumer, and the years-old technology will be relegated to the lower two tiers to placate their non-luxury consumer, and that's that.

This is how high-end brands selling premium products function. You can't get the great features of the $200,000 BMW 7 Series in a $28,000 BMW 3 Series. You get some, but you don't get the good stuff.

 

[ftaok]

I wonder why they treated like it was flop. Interesting!

Well, in my opinion, the only folks characterizing the 5c as a flop were the financial analysts that had a vested interest in keeping Apple's stock price low. The way the financial world framed the 5c made it so Apple couldn't win, no matter how well the 5c sold or the price point.

My recollection was that the conventional wisdom at the time was that Apple needed to have a $300 iPhone to better compete with Samsung and the others in order to gain market share. Never mind the fact that Apple had been raking in 90+% of the entire industry profits by going only after the high end market.

When Apple introduced the 5c at the $550 price point, analysts had an easy target to attack Apple's non-focus on obtaining more market share. Of course, as time moved on, and the 5c had consistently decent sales numbers, these analysts attacked Apple by focusing on Apple's lack of market share dominance. Anything short of overtaking Android was seen as a failure of the 5c.

On the flip side, had Apple produced a $300 version of the 5c and had it sold extremely well (to the tune of eclipsing the 5S), the ASP (average selling price) of the overall iPhone line would have dropped from the $680 range down to the $450 range. These same analysts would have claimed that Apple's margins were suffering and would soon go out of business.

Ultimately, the 5c performed pretty much as well as Apple had hoped. As it was basically an iPhone 5 with a plastic shell, it provided an obvious gap compared to the 5S. The lower cost to manufacture (vs. the 5) was key. Apple could more easily drive buyers to the higher priced 5S. More cost conscious buyers could opt for the 5c for $100 less. Had they kept the 5 in the lineup with the 5S, the thought was that a higher percentage of buyers would opt for the 5 since it looked just like the 5S.

Aside - Apple is perfectly happy with their current market share, as long as they have enough active users to keep developers interested and they make lots of money. Look at the wasteland of device makers that fail in the mobile/smart phone industry. Giants like Sony, Ericsson, Motorola all lost big because they only went after market share. When you provide basically the same thing as everyone else, you can only compete on price. Somehow, Samsung has found a way to differentiate their phones from the rest of the Android world and have carved themselves a healthy cut of the pie. Apple easily differentiates with the iPhone precisely because it's not an Android.

 

[turbineseaplane]

@ftaok

Nailed it!
You can't spell "Tim Cook" without "ASP"
(It looks wrong, but trust me, you can't...lol)

 

[UnifiedMelody]

I have been saying since the Keynote that the X is a massive disappointment.

Obviously not everyone agrees with me and people still went out and bought it anyway and are happy with it, and that's fine.

But the bottom line is, for a 10 year special edition iphone, the X failed to deliver on a device worthy of a 10 year anniversary Apple smartphone.

Okay you replaced TID with FID, but why make a biometric system the killer feature on the device when it simply replaced another biometric system. And then to charge ($1500 in Australia) for a device which offered nothing really new, is it any surprise that sales are down?

Link: https://www.extremetech.com/mobile/...e-falls-analysts-warn-iphone-x-sales-dropping

Accoring to the link, sales are down and Apple's share price has suffered as a result.

If, as a tech consumer product company, you keep offering very little in terms of innovation yet keep charging more, this is what happens. I don't need to have an MBA to know this, it's common sense and you think Tim Cook would know this too but apparently he doesn't. The only thing Tim Cook knows to do is drive the bus that Steve Jobs built.

Brand loyalty can only get you so far. And with the competition offering more and more innovation, things won't change unless Apple does an about face and gets serious about the iphone again.

If all people wanted was to keep the ecosystem in tact with a solid decvice for 2017, the iphone 8/ 8 Plus would have done the job sublimely. But a 10 year edition device had to be much more than what the X was.

It's not like Apple has not been in the wars before because of stupid decisions it made. Once upon a time Steve Jobs had to come back and rescue it, unfortunately he won't be around a second time if Tim Crook keeps slowing down the innovation and all the while increasing the price.

kinda agree it is expensive in Australia. Whilst I have tested both the 8 Plus and X on a fortnightly basis I decided to go back with the 8 Plus personally. It's not like the 8 Plus was crippled in terms of performance anyways. Still not a fan of the 2nd lens on the iPhone X neither the 8 Plus but battery life was a dealbreaker and the 8 Plus had better batt life over the X .

So literally the extra money is paid for a newer design + faceID + 2nd OIS only... -_- surely not worth a 400aud jump+

mind you this is a real user perspective... not some tech review that obviously would praise the more expensive phone. for most people i can see iPhone 8 Plus being the ideal gargantuan smartphone for daily needs. It will take about a year or two personally before the X becomes mainstream and optimized as I've discovered a few bugs lately with the iPhone X. Stuck at lock screen can't swipe up, the back button going all the way to the top of the notch rendering the app useless which meant had to restart, few uninformed restarts with the iPhone X [i have no idea why im just in my bedroom as that happened]. theres a few more and i hope in the next year or two i can finally upgrade to the iPhone x form factor its just i feel it's buggy and not ready yet to be honest.
[doublepost=1514511898][/doublepost]

I’ll never pay a $thousand + for a phone. Not going to happen. The value is simply not there. My last PC that I built was $1000. I even think $600 is high for a phone. I laughed when a decade ago they wanted $500 for the first iphone. Did not buy one until I could get one for about $200 via contract. Imo, Apple is in dangerous territory,

the PC i built was 3500$, and yes while that was freaking expensive [it's a gaming setup with a 1k monitor in the actual pricing] i am sure the PC will last at least 10 years as long as i do not touch video editing of any form [which is when more cores will become necessary]. While i do use my phone a lot i cant justify the extra 400aud for just a new screen, faceid and the oled/gestures and the 2nd OIS camera...

can agree with you on the dangerous territory bit... 1579$ for a starting price is kinda high especially for australia, i mean us people might not feel it as much as we have the premium extra tax alongside the exchange rate, so at least 100-150aud more we are paying for the same thing...
[doublepost=1514512019][/doublepost]

Exactly right.

Both BMW and Kia make cars with wheels and engines that can take passengers from Point A to Point B.

But only one is a BMW, and it has features and luxuries that a Kia lacks. I'm not sure why so many people think that when it comes to Apple, they are entitled to have a BMW at Kia prices. If you can't afford the X, you can still get nicely from Point A to Point B in a SE or a 7.
[doublepost=1514471865][/doublepost]

The "mainstream" is a politically correct way of saying "people who can't afford the jump from a $349 SE to a $999 X" so just say it plainly.

Apple will never be releasing something exciting for that budget customer. Apple innovation will live in the top two tiers to satisfy their luxury consumer, and the years-old technology will be relegated to the lower two tiers to placate their non-luxury consumer, and that's that.

This is how high-end brands selling premium products function. You can't get the great features of the $200,000 BMW 7 Series in a $28,000 BMW 3 Series. You get some, but you don't get the good stuff.

exactly they have the iPhone 8 and 8 Plus with most capabilities of the X... it's not like the 8/8+ was crippled i n terms of performance [asides the "Design"] that to get the top notch performance you n eeded to go full out with the X, should be kinda happy we are getting options rather than zero, as back then you had to buy the "top phone" due to limited choice availability

 

[arubinst]

I have been saying since the Keynote that the X is a massive disappointment.

Obviously not everyone agrees with me and people still went out and bought it anyway and are happy with it, and that's fine.

But the bottom line is, for a 10 year special edition iphone, the X failed to deliver on a device worthy of a 10 year anniversary Apple smartphone.

Okay you replaced TID with FID, but why make a biometric system the killer feature on the device when it simply replaced another biometric system. And then to charge ($1500 in Australia) for a device which offered nothing really new, is it any surprise that sales are down?

Link: https://www.extremetech.com/mobile/...e-falls-analysts-warn-iphone-x-sales-dropping

Accoring to the link, sales are down and Apple's share price has suffered as a result.

If, as a tech consumer product company, you keep offering very little in terms of innovation yet keep charging more, this is what happens. I don't need to have an MBA to know this, it's common sense and you think Tim Cook would know this too but apparently he doesn't. The only thing Tim Cook knows to do is drive the bus that Steve Jobs built.

Brand loyalty can only get you so far. And with the competition offering more and more innovation, things won't change unless Apple does an about face and gets serious about the iphone again.

If all people wanted was to keep the ecosystem in tact with a solid decvice for 2017, the iphone 8/ 8 Plus would have done the job sublimely. But a 10 year edition device had to be much more than what the X was.

It's not like Apple has not been in the wars before because of stupid decisions it made. Once upon a time Steve Jobs had to come back and rescue it, unfortunately he won't be around a second time if Tim Crook keeps slowing down the innovation and all the while increasing the price.

So, people went out and bought the phone, and they’re happy with it... but the X is a massive disappointment?

Yeah... makes total sense...

 

[The-Real-Deal82]

So, people went out and bought the phone, and they’re happy with it... but the X is a massive disappointment?

Yeah... makes total sense...

He made that clear that was his personal opinion. I’ll be honest I was disappointed with it too. Whether or not a fraction of others were happy with it has absolutely no bearing on my personal opinion.

I was disappointed with the lack of it bringing anything exciting to the market and mostly it’s eye watering high price point. I got the impression 2017 was the year Apple stuck two fingers up to its core mainstream user and went after the smaller niche segment. Had they put some effort into the iPhone 8 I think most would have just overlooked the iPhone X and not complained about it.

 

[SirithX]

I enjoy the X a lot, but I agree that it should be about $200 cheaper. That said, I have no regrets about buying it knowing that I'll have it for at least 2 years, and many of my friends have picked it up as well and love it. I see it in public pretty much everywhere I go (but I do live in a big city) so I feel like it's doing well.

 

[44267547]

I enjoy the X a lot, but I agree that it should be about $200 cheaper. That said, I have no regrets about buying it knowing that I'll have it for at least 2 years, and many of my friends have picked it up as well and love it. I see it in public pretty much everywhere I go (but I do live in a big city) so I feel like it's doing well.

I think the biggest complaint about the iPhone X is the price. I know many have commented that Face ID is not as consistent as it should be, or other hardware related issues they have come across, but the price point is the most difficult part about the iPhone X. Given it's a great iPhone, I do agree if it was priced somewhat cheaper, it would be an easier transition for some.

 

[The-Real-Deal82]

I think the biggest complaint about the iPhone X is the price. I know many have commented that Face ID is not as consistent as it should be, or other hardware related issues they have come across, but the price point is the most difficult part about the iPhone X. Given it's a great iPhone, I do agree if it was priced somewhat cheaper, it would be an easier transition for some.

I have my reservations about some of the things on the phone but I’d happily give the device a go if it was the iPhone price. I know a few here have suggested it’s Apples luxury premium offering and I think that concept is fine, but the iPhone 8 which appeals to the core iPhone user is to put it lightly, rather dull. It’s so dull in fact it’s been reported to be selling less than the iPhone 7. I suppose people are thinking if they are not going to get anything particularly exciting, they might as well save a bit more cash.

Apple needed to put more effort into the 8 to entice people in. Putting all their eggs in one basket and pushing the highly priced X has satisfied the consumer who is either Apple mad, or doesn’t mind spending a lot of money, but Apples core user these days is the average person. If the pricing remains the same next year and the mainstream device is stifled in an innovative sense, I think we’ll much the same reaction again.

 

[lsutigerfan1976]

Interesting. Cause from what I heard the X did awesome.

Apple is far from dying. Post is nothing but an overreaction if you ask me.

They aren’t dying. But sales are below what they expected. OP is correct. They had plenty of time, they’ve actually had years of trying to figure out a ten year anniversary phone. And the one they came out with was meh at best. Only thing I think that keeps ppl with Apple. Besides the reputation of having good products. Is the ecosystem. But at some point, someone will come up with a better ecosystem.

 

[turbineseaplane]

(the iPhone 8) is so dull in fact it’s been reported to be selling less than the iPhone 7

Are we sure that isn't because the 8 buyer market is now getting divided up between the X & the 8?

 

[The-Real-Deal82]

Are we sure that isn't because the 8 buyer market is now getting divided up between the X & the 8?

I’m sure a certain element will go that way but iPhone 7 were outselling the 8 in November and December in the UK.

If just the 8 market is being divided between that and the X then where are the rest of the people? Keeping phones longer and not upgrading? That’s been a suggestion to part of the reason for lower than expected sales.

 

[DNichter]

Yes, they'll make the most revenue from any iPhone in 6 weeks. Huge failure.

 

[Huntn]

I miss the X a lot, but since I got the 8+ as a gift? I don't have a need for the X anymore and could save significant $ in the process. The innards being the same really helps as well. Just hope Apple doesn't fragment iOS 12 too much since the shifts onto the X were a decent difference with the app launcher, control center, and other gestures.

The 8 has a better camera. However, I have a camera for serious picture taking. I believe Apple has met their price limit point. For myself, if my 6 breaks tomorrow, I’ll buy another 6 if they are still available. It does everything and more that I need a phone to do.
[doublepost=1514566745][/doublepost]

I’m sure a certain element will go that way but iPhone 7 were outselling the 8 in November and December in the UK.

If just the 8 market is being divided between that and the X then where are the rest of the people? Keeping phones longer and not upgrading? That’s been a suggestion to part of the reason for lower than expected sales.

Pricing I imagine.

 

[aevan]

I have been saying since the Keynote that the X is a massive disappointment.

Um, ok.

Obviously not everyone agrees with me and people still went out and bought it anyway and are happy with it, and that's fine.

Sure it's fine! People have opinions.

But the bottom line is, for a 10 year special edition iphone, the X failed to deliver on a device worthy of a 10 year anniversary Apple smartphone.

In your opinion, of course. Even a month after purchase, I am still delighted with mine and surprised how good it is.

Okay you replaced TID with FID, but why make a biometric system the killer feature on the device when it simply replaced another biometric system.

There is nothing 'simple' about Face ID. Also, it's not "another biometric system' - it's a more advanced biometric system that also allows the removal of the Home button which, in turn, allows for an edge-to-edge screen. So, that's why.

And then to charge ($1500 in Australia) for a device which offered nothing really new, is it any surprise that sales are down?

Well, I'm happy to inform you that everything is new in the iPhone X - and a lot of 'firsts' on an iPhone. A first OLED screen on an iPhone, a first edge-to-edge screen on an iPhone, a first face unlock on an iPhone - alongside the most dramatic redesign of the iPhone since, well, iPhone - and a whole new way to charge it as well as a completely new, insanely fast CPU - a first 6-core CPU on an iPhone alongside the first Apple-made GPU on an iPhone. Also, the camera is new and the materials are new (steel instead of aluminium).... actually, when I think about it - what isn't new on iPhone X? I guess, um.... the lightning port. There, that's not new. And the SIM card tray and the side buttons.

If, as a tech consumer product company, you keep offering very little in terms of innovation yet keep charging more, this is what happens.

And yet, somehow, they keep earning more and more money. Sales of the X seem really good, when you take the price into account, and also 8 is selling a lot better than people expected. Which is not so surprising, since they offered so much in terms of innovation.


Look, you don't like it - we get it. Others do and it's doing great. If you are not satisfied with the iPhone X, I can guarantee you won't be satisfied next year, either. Perhaps it's time to look elsewhere. It's not the iPhone X, it's you - and that's fine.

 

[boltjames]

Are we sure that isn't because the 8 buyer market is now getting divided up between the X & the 8?

I’m definitely sure.

The combination of the 8 and X will provide greater revenue than the launch of the 6 did in 2014. Book it.

 

[nviz22]

The 8 has a better camera. However, I have a camera for serious picture taking. I believe Apple has met their price limit point. For myself, if my 6 breaks tomorrow, I’ll buy another 6 if they are still available. It does everything and more that I need a phone to do.
[doublepost=1514566745][/doublepost]
Pricing I imagine.

How does the 8 have a better camera? Orientation on the back? I thought the X had 2 OIS lenses at the back? Plus they have a TrueDepth system in the front?

 

[turbineseaplane]

I’m definitely sure.

The combination of the 8 and X will provide greater revenue than the launch of the 6 did in 2014. Book it.

I don't understand what relevance the iPhone 6 launch in 2014 has to this?

Also how are we going to "book it" when we don't ever actually know any of the sales numbers by Model?

 

[Huntn]

How does the 8 have a better camera? Orientation on the back? I thought the X had 2 OIS lenses at the back? Plus they have a TrueDepth system in the front?

The 8 has a better camera than the 6. It has 2 cameras mounted side by side for different depths of field as I understand it.

 

[boltjames]

I don't understand what relevance the iPhone 6 launch in 2014 has to this?

Also how are we going to "book it" when we don't ever actually know any of the sales numbers by Model?

The iPhone 6 was the most successful launch of a smartphone in history. It’s the benchmark against which all other launches are measured.

At the end of the fourth quarter, Apple will release figures showing total unit sales and revenue of the iPhone category. If revenue of all iPhone models in fourth quarter of 2017 eclipse the launch of the iPhone 6 and other models in 2014 you will know that Apple is doing just fine in its telephone segment and that all these “Apple is in trouble!” posts are nonsense.

 

[Daikatan]

No.
iPhone X has the best camera.
It’s much better that iPhone 8 camera.
Where did You read or who told You lies that iPhone 8 camera is better ???