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iPhone demand falls short

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  • 25-04-2018 9:58am
    #1
    faceman
    Moderators, Category Moderators, Arts Moderators, Entertainment Moderators, Social & Fun Moderators Posts: 16,641 CMod ✭✭✭✭


    Seems the supply chain for iPhone manufacturing has indicated a drop in revenues signalling weaker than expected demand for iPhones. $64bn has been wiped of the value of Apple as a result.

    No doubt there will be a recovery come the next Apple earnings but perhaps this might encourage Apple to revisit their pricing strategy.

    https://www.cnbc.com/2018/04/24/apple-loses-64-billion-in-value-as-wall-street-is-in-full-panic-mode.html


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    #2
    Rulmeq
    Registered Users Posts: 1,083 ✭✭✭Rulmeq


    faceman wrote: »
    No doubt there will be a recovery come the next Apple earnings but perhaps this might encourage Apple to revisit their pricing strategy.

    Firstly, paper never refused ink, and websites never refused bits. This is speculation based on rumours from "supply chain" sources. (I would also point out that there has been a week long bear market in tech stocks, and netflix and amazon are down 11% and 13% respectively in the same period, are they charging too much?).

    But secondly, why would they reconsider. They were running into issues meeting demand for their phones priced in the $600-$800 region, so they decided to launch an even more expensive version that happend to sell better than both the 8, and the 8+ (not combined), whihc just happend to have meant that they were able to extract higher average unit prices for 1/3rd of the new phones they released last year, whilst keeping unit numbers the same (if they had to sell 90 million 8/8+s instead of 70 million of all 3, they would have run into the problem of not being able to supply the market until well into the new year). If anything the fact that 1/3rd of the phones they sold were $1000+ just means that they nailed their target market, and will probably even go higher with the next model (X+ or whatever for $1200, who knows - you can be sure not those in the "supply chain" who seem to do a bang up job manipulating the stock market after Q1 every year)


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