Published in Mobiles

iPhone sales will continue to fall

by on26 September 2018

Dance of the dying cash cow

Despite what is written in the Tame Apple Press, smart money is predicting that sales of iPhone will continue to fall over the next year.

Normally there is a bit of a boom for Apple when it releases a new phone and fanboys rush to replace their old phone with something more expensive.

Apple’s real sales need to be seen in the context of what happens when the hype drops, and saner heads start to wonder if the phone is worth it.

The iPhone XS series is more expensive than previous over-priced models and analysts are starting to realise that this was a stupid move.

One of the major indicators was that the first wave of the sales of the iPhone XS and XS Max was not as enthusiastic as that of the previous iPhone 6 generation.

Consumers have apparently shunned the iPhone XS Max for its extremely higher price and the iPhone XS for a lack of specification upgrades.

There is talk that Apple might have realised the price hike was dumb and reduce the cost, but that will anger fanboys who already have paid the full whack. It is fairly likely that Apple will keep the current pricing until after Christmas and drop the price after the holiday sales dry up.

With Apple it is all about marketing and hype. When sales fall after Christmas, it will say that this is traditional and not to be worried about.

However, reports from Apple suppliers suggest that they are expecting Apple to reduce significantly its orders to supply chain makers at the same way as it did for the iPhone 6s and iPhone 7.

This will be bad news for all those supply chain makers which have committed heavy investments for facilities upgrades in order to secure orders from Apple.

It all seems rather dumb. Apple’s cash cow is clearly dying. Combined sales of the iPhone 8 devices and iPhone X have so far below those of the iPhone 6 devices.

A recent Bloomberg report indicated that Taiwan's Apple suppliers have seen their share prices fall as shipment growth has stagnated. For example, the share price of Foxconn Electronics (Hon Hai Precision Industry) has slumped 38 percent since hitting a record price in the middle of 2017.

The second issue is that the iPhone’s Intel modem does not appear to be up snuff with fanboys worried about this new “drop connection” feature.

Additionally, it remains to be seen whether demand for the new Phones, particularly the iPhone XR which support dual-SIM, will jump up in China given the trade war between the US and China could continue to escalate.

Last modified on 26 September 2018
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