American-style football may not be the most popular sport in the world, but that doesn’t stop many of us from becoming Monday morning quarterbacks, or engaging in armchair quarterback sessions. That means we all have simple solutions to what turn out to be complex problems.
Word on the streets says new iPhone sales are down. Maybe so, maybe not. Apple’s executives are are the only ones who know for sure and they’re not telling, and not required to tell. Yet. However, the number of armchair quarterbacks who understand Apple’s woes and have instant solutions seems to be growing ever upward as APPL sinks lower.
Hey Tim Cook, there’s a simple solution to your iPhone sales problem
Uh huh. Sure. You just know that that a writer for one of the world’s least respected business magazines knows what will save Apple, right?
What, pray tell should Tim Cook do to save Apple?
Lower your prices.
Sage advice, no? As usual with armchair quarterbacks, the advice is too little and too late. How so?
Bloomberg reported that you have revved up your marketing efforts to try to boost the sales of your latest phones and have started offering more generous-than-usual trade-in terms for older phones.
What that means should be obvious to Apple customers and certified Apple watchers but plainly is not obvious to members of the technorati elite politburo who think they know more than Apple’s executives.
There are many ways to discount products, but is it not obvious to the untrained eye that Apple has already cut prices on new iPhone products? Now, the retail price of iPhone XR, at $749, still weighs in at $749, so no discount there, but look around at various cellphone companies and you’ll see discounts galore.
Again, it’s not exactly a change in price, but even Apple’s own website has iPhone XR starting at $449. iPhone XS starts at $699. Discounts, right? Almost. Each promotion requires you to trade in an older phone to get the new phone pricing. You’ll see similar discounts on cellphone carriers, too; many offer a free iPhone XR or XS with a contract, or a minimal amount extra per month.
See? Apple knew all about the solutions to their sales woes long before the armchair quarterbacks figured it out.
One. More. Thing.
Wolverton is merely one among many who clamor for Apple to cut iPhone prices because everyone who wants to be revered online thinks it’s the right thing to do because prices are too high. Which company would you want to be when it’s time to cut prices? One of the Android smartphone makers who already sell smartphones at discount prices? Or, the premium smartphone maker with sufficient gross margins to sell products at a discount and still remain profitable?
I think I’ll go with what’s behind Door #2, Monte.