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Italianblend

macrumors 68000
Original poster
Mar 21, 2011
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Fatima
seems to me there are so many devices out there / everyone has a device now / less people upgrading every year / Apple can’t possibly keep up this every year release thing at these prices. Eventually people will stop buying a phone frequently and the system will collapse. Apple will go bankrupt. No?
 
As far as Apple releasing a new phone each year, most likely, to stay current in the market, if the market demands. As far as Apple going bankrupt due to lack of phone sales, highly doubtful. They're much more than a phone maker. That's just one of their most recognized products.
 
seems to me there are so many devices out there / everyone has a device now / less people upgrading every year / Apple can’t possibly keep up this every year release thing at these prices. Eventually people will stop buying a phone frequently and the system will collapse. Apple will go bankrupt. No?
But that's the strategy.

They know people are holding on to their phones longer. So the marketing for new phones is directed at people who haven't upgraded in a couple years or more. And because Apple knows that the upgrade cycle is lengthening they have increased the prices of the device.

If you're unwilling to pay a premium price each year for what amounts to a minimal upgrade then you are no longer the customer Apple is targeting. Wait a couple of years and what Apple has will be worth the price to you.

But if you do buy every year no matter what then Apple just gets a bonus.
 
Apple don’t need people to upgrade annually.

They release a new model every year to encourage those who upgraded 2-3 years ago to upgrade.

Also, if the competition is releasing phones annually, then it would be odd for Apple not to do the same.
 
seems to me there are so many devices out there / everyone has a device now / less people upgrading every year / Apple can’t possibly keep up this every year release thing at these prices. Eventually people will stop buying a phone frequently and the system will collapse. Apple will go bankrupt. No?
Think about it. If what you say were true, nobody would buy new cars and all of the automobile manufacturers would be out of business.
 
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When  hits the technology wall, they'll back off on the annual iPhone updates just like they've done with their computers.
 
When  hits the technology wall, they'll back off on the annual iPhone updates just like they've done with their computers.

I disagree that they’ll back off.

They’re selling so many devices that they could just tweak the form factor and colours every year if they were that desperate. The setup costs for doing this would be minimal when volume is so high.

Mac is about 10% of iPhone volume if I recall.
 
Every company releases a new phone every year. Don’t know why people think it’s something exclusive apple does :rolleyes:
 
seems to me there are so many devices out there / everyone has a device now / less people upgrading every year / Apple can’t possibly keep up this every year release thing at these prices. Eventually people will stop buying a phone frequently and the system will collapse. Apple will go bankrupt. No?

Bankrupt? Not even close. Even if the iPhone were to completely plummet, Apple has a massive amount of money tied into Apple services they could survive alone on if they wanted to.

Also, you have to factor, millions of people upgrade iPhones every year, and you still have a lot of adopters with previous Gen iPhones that have not upgraded, that will likely find the XR to be more attractive because of the price.

Apples marketing, iOS and security are all reasons why the iPhone is so successful.
 
I remember when you could buy the same phone for years. Not all flagship phones have been updated every year in the past. Since the iPhone, it seems like it has become more commonplace.
 
As far as Apple releasing a new phone each year, most likely, to stay current in the market, if the market demands. As far as Apple going bankrupt due to lack of phone sales, highly doubtful. They're much more than a phone maker. That's just one of their most recognized products.

They would be done if it wasn’t for iPhone. Don’t kid yourself.
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Bankrupt? Not even close. Even if the iPhone were to completely plummet, Apple has a massive amount of money tied into Apple services they could survive alone on if they wanted to.

Also, you have to factor, millions of people upgrade iPhones every year, and you still have a lot of adopters with previous Gen iPhones that have not upgraded, that will likely find the XR to be more attractive because of the price.

Apples marketing, iOS and security are all reasons why the iPhone is so successful.

Most of the time I totally agree with you. But here not so sure. If iPhone went away tomorrow I think Apples days would be numbered.

Edit...obviously I’m speaking about a world where smart phones still reign.
 
They would be done if it wasn’t for iPhone. Don’t kid yourself.
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Most of the time I totally agree with you. But here not so sure. If iPhone went away tomorrow I think Apples days would be numbered.

Edit...obviously I’m speaking about a world where smart phones still reign.
Just what color is the sky in your world? You don’t become a trillion dollar company for nothing. They were around long before iPhone existed and most likely be around when it’s over.
 
If Apple continues to charge high prices for their iPhones, they will definitely loose in the current smartphone market en end up like BlackBerry!

People are not stupid these days to continue paying $999+ (€1159+ in EU) for a smartphone.
If you have been reading the news lately, Apple is cutting production of iPhone due to lack is sales. As a result, their stock is plummeting and the competition is making similar phones for significantly lower price!

Btw, Apple lost its 1 trillion dollar position!
 
Most of the time I totally agree with you. But here not so sure. If iPhone went away tomorrow I think Apples days would be numbered.

Edit...obviously I’m speaking about a world where smart phones still reign.

It’s true the smart phone for Apple is roughly 60% of their net revenue. But if you think about what they have invested in the services with Apple Pay, iTunes, the App Store, etc., they have a very large amount of money available at their expense where they could easily survive, but for how long? I obviously don’t know the answer to that question. But their services have been growing for years on the rise and it’s a crucial part of their company focus in income.
 
Well there was a nearly 18 month gap between the 4 and 4s, so it's not entirely unprecedented. I think that was to move the iPhone from summer launches to 'just before Christmas shopping season' launches, though. As iPhone is still their bread and butter product, I don't think they'd want to let it stagnate too much.
 
It’s true the smart phone for Apple is roughly 60% of their net revenue. But if you think about what they have invested in the services with Apple Pay, iTunes, the App Store, etc., they have a very large amount of money available at their expense where they could easily survive, but for how long? I obviously don’t know the answer to that question. But their services have been growing for years on the rise and it’s a crucial part of their company focus in income.

It’s probably closer to 75% at this point.

60% of sales was from last quarter 2018. Mac sales make up a messily 7% of sales.

You mention Apple Pay, iTunes etc.

Well it’s no wonder they want to push everyone to iPad and keep it iOS.

Apple Pay and services are all residual iPhone sales. Without iPhone there is no Apple Pay, iTunes and App Store woukd not be where it is without iPhone. It’s all a Bi product of iPhone.
 
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