iPhone X Nearly 6 months in, the iPhone X isn't that successful

[The-Real-Deal82]

This is actually an incredibly important point. We don't know what Apple's expectations were. Bloggers and pundits (and people who post in enthusiast forums) can talk about their own expectations or hypothesize about Apple's expectations, but without knowing either what Apple's expectations were or the actual sales data, it's just a lot of hot air.

To be honest we have never really know Apples expectations on anything they have released as they only ever report that something has done as expected without any proper elaboration. As commenters we have our own impressions and we come here to share much like bloggers and journalists do the same in their own mediums.

The iPhone X has been unusual due to it being a very different product to any previous iPhone. It hasn’t been aimed at the mainstream user like say an iPhone 6 was so it’s difficult to gage. It’s not a device you are going to see dozens of out and about because it’s priced so much higher than previous iPhones. I don’t think the buzz for new releases is quite what it used to be due to all iPhones being very capable of doing consumers need. With that in mind it may well have exceeded Apples expectations for its intended market but it was never going to dominate the market either. Without knowing what Apple actually expected, we can only guess and it’s fine to do that.

 

[Adelphos33]

I'm sure someone posted this, but

https://www.cnbc.com/2018/03/28/goldman-sachs-slashes-apple-iphone-sales-estimates.html

Maybe we are just in the situation where single iPhone models aren't going to be "hits" in the way prior phones were when you could get them on contract for $300

 

[The-Real-Deal82]

I just think we are in an era where there are more older iPhones still going strong and the lust for new iPhones every year has diminished. Manufacturers have to adjust their expectations to the way buying habits have changed that’s all.

 

[newellj]

I'm sure someone posted this, but

https://www.cnbc.com/2018/03/28/goldman-sachs-slashes-apple-iphone-sales-estimates.html

Maybe we are just in the situation where single iPhone models aren't going to be "hits" in the way prior phones were when you could get them on contract for $300

I just think we are in an era where there are more older iPhones still going strong and the lust for new iPhones every year has diminished. Manufacturers have to adjust their expectations to the way buying habits have changed that’s all.

I think you're probably both right.
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I'm assuming that if suppliers scaled back, that projections have to be off. I would think they would probably run some internal projections, but mainly rely on Apple when ramping up production.

That is logical, though do we know how firm (or, a different thing, how reliable) Apple's supply requirements information to its suppliers is? For example, it could be a large range, and possibly some suppliers tend to start at the high end or perhaps even add something to the high end of the range, so Apple coming in with firm order that are within the range but at the lower end sets of signals in the supply chain? No idea, just speculating around the good point that you're making.

 

[craigio85]

I just think we are in an era where there are more older iPhones still going strong and the lust for new iPhones every year has diminished. Manufacturers have to adjust their expectations to the way buying habits have changed that’s all.

Definitely the case in the UK at least. Consumers are increasingly value conscious and shelling out upwards of a grand for an iPhone that does the same job as another iPhone costing £700 doesn’t make much sense to the vast majority of people. Years on end of very low upward movement of salaries means monthly cost expectations for everything from phones to groceries haven’t shifted. And when there’s a “new” iPhone sitting in the £35 per month sweet spot, it’s always going to sell better than one at the £65 per month level that most people see as excessive - regardless of whether they can afford it. And if your three year old phone is still going strong and you can keep it and drop to a £10 per month SIM only plan, even better. That, and technology developments have slowed. There’s just no compelling reason to do annual upgrades now - unless you just love shiny new things and don’t mind paying the premium for them.

Seems quite clear that come the Autumn, the next iPhone will adopt the price point of the X, the X will shift down to the 8, the 8 to the 7. Thus, over the next 3 years the X design gradually becomes more prevalent. Not the bold Apple of old, but I guess it fits the market conditions.

 

[The-Real-Deal82]

Definitely the case in the UK at least. Consumers are increasingly value conscious and shelling out upwards of a grand for an iPhone that does the same job as another iPhone costing £700 doesn’t make much sense to the vast majority of people. Years on end of very low upward movement of salaries means monthly cost expectations for everything from phones to groceries haven’t shifted. And when there’s a “new” iPhone sitting in the £35 per month sweet spot, it’s always going to sell better than one at the £65 per month level that most people see as excessive - regardless of whether they can afford it. And if your three year old phone is still going strong and you can keep it and drop to a £10 per month SIM only plan, even better. That, and technology developments have slowed. There’s just no compelling reason to do annual upgrades now - unless you just love shiny new things and don’t mind paying the premium for them.

Seems quite clear that come the Autumn, the next iPhone will adopt the price point of the X, the X will shift down to the 8, the 8 to the 7. Thus, over the next 3 years the X design gradually becomes more prevalent. Not the bold Apple of old, but I guess it fits the market conditions.

To be honest I’ve noticed priorities regarding phones change among people who aren’t hard up for money too. People on my level at work who earn late thirties to late forties are still opting to use older iPhones because despite what you earn or can afford, the price is still considered high. As a business phone any iPhone is capable of getting the job done and being nice to use. The X is double what I currently pay for a 6S and for the life of me I can’t see the value in it.

As you say mentalities have changed in the UK with the rising cost of pretty much everything and electronics are increasingly losing out.

 

[44267547]

In the business sector, Something else I noticed a trend in my area, a lot of companies and corporations or even agencies that upgrade their phones are not upgrading to the iPhone X. Why? Because it’s the most expensive iPhone in their lineup and they’re trying to be frugal with their budget, let alone the iPhone 7/8 would be the better choice because it’s more affordable affordable and still provides the latest iOS and security.

 

[The-Real-Deal82]

In the business sector, Something else I noticed a trend in my area, a lot of companies and corporations or even agencies that upgrade their phones are not upgrading to the iPhone X. Why? Because it’s the most expensive iPhone in their lineup and they’re trying to be frugal with their budget, let alone the iPhone 7/8 would be the better choice because it’s more affordable affordable and still provides the latest iOS and security.

The company I work for upgraded the sales teams across Europe with the 7 Plus as the deals are excellent since the 8 and X were released. It’s saved money too as they used to carry an iPhone and an iPad so the Plus bridges the gap. I don’t think a £1k smartphone will ever be first choice for any company who buy in bulk. If phones continue being as expensive as they are I think many businesses will look at more budget devices going forward.

 

[44267547]

The company I work for upgraded the sales teams across Europe with the 7 Plus as the deals are excellent since the 8 and X were released. It’s saved money too as they used to carry an iPhone and an iPad so the Plus bridges the gap. I don’t think a £1k smartphone will ever be first choice for any company who buy in bulk. If phones continue being as expensive as they are I think many businesses will look at more budget devices going forward.

The agency I work for was even posed the question would they consider the iPhone X and it was immediately denied because of the price point. Not many companies are willing to spend that type of money unless it’s a smaller group of individuals versus having a large amount of employees to buy phones for. Most companies don’t care about purchasing the latest device for their employees, when they see it as a cost factor and it’s merely a smart phone, not something that they need to have the latest device for any specific reason.

 

[The-Real-Deal82]

The agency I work for was even posed the question would they consider the iPhone X and it was immediately denied because of the price point. Not many companies are willing to spend that type of money unless it’s a smaller group of individuals versus having a large amount of employees to buy phones for. Most companies don’t care about purchasing the latest device for their employees, when they see it as a cost factor and it’s merely a smart phone, not something that they need to have the latest device for any specific reason.

I think when a financial controller reviews the choices they will find no reason to pay more for the X. For productivity what does an X do that a 7 Plus or 8 Plus can’t? Whether the employees fancy a shiner phone is irrelevant. When that cost is spread over 200+ sales staff, senior managers and directors it adds up to a massive expense and as you say companies are beginning to be more frugal in recent times.

My company slashed the company car budget a couple of years ago too as some staff were driving Range Rovers and Audi A8’s. It didn’t give a great impression to customers and employees further down the chain who were perhaps on pay freezes. We’ve had record profits the last three years after many cuts posting over €100m at the end of each financial year.

 

[cola79]

I think it’s more simple than most people think, the X was a failure of the management. Cook did not see that there is no future market for expensive phones. These times are over. Whilst you can sell cars when using expensive interiors and special design, this simply does not work with phones.

But he understood this now, thats why they shifted to affordable iPads and begin to launch a discussion about data security/privacy.

The future market will be the OS and how a brand protects their users from data theft and fraud. Apple will still not sell their product for cheap, but they will focus on the nowadays mid price range, as this is the top line people accept paying for an all day item.

Future looks good for Apple, because google would need a hundred percent turn to adapt to the new customer demands. I think Android will be history in ten years, not only by customer decision but also because of changed laws.

It was the same with nokia. People wanted smart phones and they stuck on feature phones. Soon people will want security of personal data, and since Microsoft said goodbye to the mobile market, there’s only Apple who offers this at the moment.

 

[Phone Junky]

I just think we are in an era where there are more older iPhones still going strong and the lust for new iPhones every year has diminished. Manufacturers have to adjust their expectations to the way buying habits have changed that’s all.

Agree. When the last 4 generations all look the same, the average consumer doesn’t see a difference and wouldn’t notice the incremental hardware differences, so they keep their older iPhone that’s “just like the new one”.

 

[akash.nu]

The company I work for upgraded the sales teams across Europe with the 7 Plus as the deals are excellent since the 8 and X were released. It’s saved money too as they used to carry an iPhone and an iPad so the Plus bridges the gap. I don’t think a £1k smartphone will ever be first choice for any company who buy in bulk. If phones continue being as expensive as they are I think many businesses will look at more budget devices going forward.

The agency I work for was even posed the question would they consider the iPhone X and it was immediately denied because of the price point. Not many companies are willing to spend that type of money unless it’s a smaller group of individuals versus having a large amount of employees to buy phones for. Most companies don’t care about purchasing the latest device for their employees, when they see it as a cost factor and it’s merely a smart phone, not something that they need to have the latest device for any specific reason.

Such purchasing decisions heavily depend on the industry. In our industry product people generally carry the latest to be able to understand how it impacts development in the future and if certain features can be implemented / will be worth the cost. Without having personal experience with such things it’s almost impossible to make a decision.

 

[akash.nu]

I think it’s more simple than most people think, the X was a failure of the management. Cook did not see that there is no future market for expensive phones. These times are over. Whilst you can sell cars when using expensive interiors and special design, this simply does not work with phones.

But he understood this now, thats why they shifted to affordable iPads and begin to launch a discussion about data security/privacy.

The future market will be the OS and how a brand protects their users from data theft and fraud. Apple will still not sell their product for cheap, but they will focus on the nowadays mid price range, as this is the top line people accept paying for an all day item.

Future looks good for Apple, because google would need a hundred percent turn to adapt to the new customer demands. I think Android will be history in ten years, not only by customer decision but also because of changed laws.

It was the same with nokia. People wanted smart phones and they stuck on feature phones. Soon people will want security of personal data, and since Microsoft said goodbye to the mobile market, there’s only Apple who offers this at the moment.

One big point you’re missing here is that Apple and Google don’t follow the same business model. Inherently their approach towards product development is different.

Apple develops software to sell more hardware and Google makes hardwares to show off their software and services.

In terms of pure software and services alone Google is miles ahead of Apple but Apple has the benefit of being able to sell their software and services as part of a cohesive ecosystem propelled by their hardware.

Android doesn’t bring any money to Google at all but iOS does for Apple. The iOS ecosystem encourages people to buy more Apple hardware and this is the only reason why Apple has started focussing their development effort towards software and services more in the recent years.

Also, hardware and software businesses are different beasts. Google never directly competes with Apple in terms of hardware in the market. It’s more Samsung.

See what I mean?

 

[The-Real-Deal82]

Such purchasing decisions heavily depend on the industry. In our industry product people generally carry the latest to be able to understand how it impacts development in the future and if certain features can be implemented / will be worth the cost. Without having personal experience with such things it’s almost impossible to make a decision.

Yeah I don’t work in IT or the mobile industry. I work in the automotive industry and phones are just tools used for emails etc. Having the latest iPhone would be largely irrelevant.

 

[mwhals]

Many of these people would have bought the latest iPhone very quickly a few years ago. One of my best friends (a millionaire in his 30s) is still rocking a 6S.

This could be why he is a millionaire. A common trait of millionaires is that we don’t waste money buying stuff. Instead of spending $1000 on a phone, we invest it. Live frugal today and later you can live like no one else.

 

[craigio85]

This could be why he is a millionaire. A common trait of millionaires is that we don’t waste money buying stuff. Instead of spending $1000 on a phone, we invest it. Live frugal today and later you can live like no one else.

True. I work in finance and not a day goes by when I don’t come across clients trying to live like millionaires when their earnings - they’d be aghast to realise - are actually pretty modest. £80,000 sounds like a very comfortable income, but too many people who earn it think it buys much more than it actually does in real terms. It’s alarmingly common for people on above average salaries to overcommit on things like houses, cars, private education for their kids etc and end up maxing out credit cards. Then as soon as there’s just enough equity in the house to remortgage and pay off the credit cards, they do it and start running up the cards again - only now with a bigger mortgage payment on top. To the outside world looking in, they’re a picture of wealth and live a life of luxury. To somebody who can see the bank balances, they’re living perilously close to the line and gambling that no unfortunate circumstance dents their income - because they often have not a penny in savings and are woefully under insured.

 

[Smartass]

It's a good phone, but not worth 1200€. If Apple priced it at 800-900€, i'm sure they would sell A LOT more of them.

 

[boltjames]

This could be why he is a millionaire. A common trait of millionaires is that we don’t waste money buying stuff. Instead of spending $1000 on a phone, we invest it. Live frugal today and later you can live like no one else.

Millionaire here.

I enjoy spending my hard-earned money on exclusive items with upscale features like cars, watches, and smartphones.

You know that part about "later you can live like no one else". It's like that for some of us, chief. The iPhone X is for us.

 

[mwhals]

Millionaire here.

I enjoy spending my hard-earned money on exclusive items with upscale features like cars, watches, and smartphones.

You know that part about "later you can live like no one else". It's like that for some of us, chief. The iPhone X is for us.

True. When retirement is adequately funded, there are no consumer debts and the house is paid off, one can invest more and buy things with cash that are really nice. That is what we do and it is great having zero debt.

 

[craigio85]

Millionaire here.

Really?! I wish you’d mentioned it sooner.

 

[44267547]

It's a good phone, but not worth 1200€. If Apple priced it at 800-900€, i'm sure they would sell A LOT more of them.

That’s why they will be introducing a 6.1 LCD iPhone. Given it will be priced-cheaper, but will come with the sacrifice of eliminating some capabilities. I think the consumer will gravitate towards this model, especially if it shares iPhone X like features.

 

[The-Real-Deal82]

Millionaire here.

I enjoy spending my hard-earned money on exclusive items with upscale features like cars, watches, and smartphones.

You know that part about "later you can live like no one else". It's like that for some of us, chief. The iPhone X is for us.

I’m a multi millionaire so bigger league again and I’ve said it on the internet so it has to be true.

 

[Smartass]

That’s why they will be introducing a 6.1 LCD iPhone. Given it will be priced-cheaper, but will come with the sacrifice of eliminating some capabilities. I think the consumer will gravitate towards this model, especially if it shares iPhone X like features.

But then you come to another problem - why phone with LCD screen tech, when you can get phones with OLED displays from competition and the same, or even lower, price?

 

[The Game 161]

But then you come to another problem - why phone with LCD screen tech, when you can get phones with OLED displays from competition and the same, or even lower, price?

because those same people want iphones not android