What a ridiculous idea. Free iPhones. That will never happen. Yet, in essence, that– at least, dramatic price cuts– is what some of the more prominent anti-Apple critics are proposing because iPhone sales are in the dumper.
You know what they say about fake news, fake outrage, and fake opinions, right? If you repeat them often enough then people will think they’re true.
Free iPhones, free iPhones, free iPhones. Is it working yet?
Here’s the basic opinion to cure Apple’s so-called woes, this time from Dave Smith:
Apple should give the iPhone XS and iPhone XR a permanent price cut
Well, it’s obvious. Dave doesn’t want to pay so much for an iPhone. Oh, and iPhone sales are in the dumper. That’s what I read and they can’t put it on the internet if it’s not true, right?
Apple has an iPhone problem
Actually, to get rid of the warped opinion and focus on basic facts, Apple has a China problem. One of Apple’s largest markets is teetering on recession, and that means fewer of everything gets sold. Including iPhones.
Apple has reportedly cut production for the new iPhones twice in the past two months, so demand for these new phones is clearly an issue.
In China. Didn’t you read Tim Cook’s revised guidance?
Reports like that surface every year a few months after new iPhones are launched. Remember, Apple said the problem was China. To make up for that shortfall in expected sales, Apple has ramped up promotions and discounts in many other countries.
For the past decade, the iPhone business has been Apple’s main source of income and success.
Uh, sorry, Dave. That’s not true. iPhone revenue and profits are the biggest part of the company’s financials, but that was not the case 10 years ago.
But that seems to be changing.
No, it’s not changing. iPhone is the big dawg in Apple’s financials and that is not likely to change any time soon. Apple has a China problem.
Anything else is a rumor.
As basic economic theory goes, demand and supply are directly, inversely related. As demand goes up, supply goes down; the opposite is usually true as well.
At $100, Apple definitely would have demand that would ease the so-called supply problem. But that would cause a revenue shortfall, a gross margin reduction, oh, and a lack of profits.
There must be a sweet spot somewhere. Maybe someone in Apple’s marketing department has a spreadsheet on how all that works.
If Apple wants more demand for these new iPhones, it needs to sweeten the deal.
Really? Maybe all those discounts and promotions and trade-in deals are what Apple is using to sweeten the deal.
Is it working?
Dave will never know.
The new iPhones are exorbitantly expensive.
And yet iPhones will outsell all other premium smartphones. Combined. I know. That’s conjecture on my part, but since we’re playing ball on Conjecture Field, it’s OK.
The narrative of the 2018 iPhone lineup is that it’s too expensive, and too similar to last year’s offerings.
Well, let’s see. It looks the same. Flat slab of glass, rounded corners, etc. But didn’t Apple say everything changed? Again. Just like it does every year.
A $100 price drop across all three phones would suffice.
Which seems to be similar to the discounts, promotions, and trade-in programs. Remember; Apple didn’t say iPhone sales were rolling off the cliff anywhere except China.
Apple’s non-iPhone businesses are doing swimmingly.
A fact not in evidence. At least, not in evidence on planet earth. Mac sales have been mostly flat for a few years. iPad sales are less than a few years ago. The only category that seems to be doing well is Services.
Business Insider on Dave Smith’s opinions:
This column does not necessarily reflect the opinion of Business Insider.
It doesn’t reflect facts, either.