Recently analysts often say that iPhone sales plummeted. Yes, and Apple has added fuel to the fire when it ceased to report on the number of sold smartphones in quarterly conference. It is therefore not surprising that some analysts like the vultures began once again to discuss the “decline” of Apple. But this time the “prank” is clearly out of control.
A couple of days ago everyone was shocked by the article, which was published in the American Forbes. Senior analyst RiskHedge Stephen McBride has published a scathing article about Apple, which actually predicted the company’s imminent collapse. The article was quickly removed first from the Forbes website, and then she disappeared from the Google cache, but someone still managed to copy the placed text.
We have prepared the translation and offer to discuss the material.
When Apple CEO Tim cook took the stage in September of this year, no one expected that he was going to say…
He introduced the new iPhone 11 — the most perfect phone ever made by Apple. But it is not in new cameras or processors for the first time Apple has lowered the price on the iPhone.
As I explained for myself, Apple made this move out of desperation … and it could mean the beginning of the end of Apple as the dominant company. Because Apple no longer computer Corporation, and a phone.
Since the release of the iPhone in 2007, Apple has sold more than 2.2 billion phones, earning trillions of dollars — more than any other manufacturer of phones in history. Meanwhile, Apple shares rose on 2037% … and made it the largest public company in the world.
iPhone is a gold mine for Apple
Apple earned a whopping $ 1,99 trillion from 2007 to 2019. And the fact that more than half of its revenues from iPhone sales. iPhone is not only the best selling Apple product. It is also the most profitable unit of the company.
If not for the iPhone, Apple would not be where it is today. Without the iPhone Apple would be a mediocre computer company like Dell (at best).
But iPhone sales have started to fall. For many years, the revenue from the iPhone grew exponentially, however, in 2015, Apple has reached its peak. IPhone sales growth has stopped, and you will notice this on the financial statements. So, last year Apple sold 14 million phones in less than three years ago.
When Apple introduced the first iPhone, the smartphone was full of innovative technologies. But any technology is experiencing a downturn as soon as the market is quite saturated with it. Twelve years ago, only 120 million people had a mobile phone. Today, according to IDC, more than five billion people own a smartphone.
Apple found a way to extend the life cycle of iPhone
As I wrote earlier, Apple has found a masterful way to extend the flow of money from the iPhone. The company raised the price of the iPhone to compensate for the slowdown in sales and support revenue growth.
Think about it: in 2010, you could buy a brand new iPhone 4 for $ 599. In 2017 you would have had to fork out for 849 dollars for the iPhone 8 and 1149 dollars for X iPhone… most expensive phone Apple at the time.
The price increase was supported by growth of the Apple… and for this reason its revenues continue to grow in 2011. But there was another reason why Apple was forced to increase the prices of their phones. Except for a few years, the cost of creating the iPhone has grown since 2007. The first iPhone cost Apple a little more than $ 200. Meanwhile, the iPhone XS (Apple’s latest iPhone) is twice as expensive.
In September last year, Apple introduced the iPhone XR, less advanced and more affordable version of the iPhone X. It cost 749 dollars, which is 35% less than the cost of iPhone X 1145 dollars.
But the truth is, it was almost the same iPhone X, only disguised as a budget phone. In fact, Apple just found a reason to release a cheaper phone to return sales to normal.
This year, Apple went even further. She has reduced the price of the flagship. The recently released iPhone 11 costs $ 699 — there are prices we haven’t seen from 2017. It was a desperate move by Apple to stimulate weak demand for smartphones. But it was the beginning of the end of the profitable business in the sphere of the iPhone.
The End Of Apple
Apple not only sells less than the iPhone, but now earns much less on each of the phones. Recent financial reports show that revenues from the iPhone, which was the driver of Apple begin to decline.
In the last quarter Apple earned for the iPhone is 10% less than the same period last year. This loss of about 20 billion dollars! Apple have never received so little money from the iPhone… and it will soon begin to be reflected in the financial statements of the company.
Let me be clear: half of the business Apple goes off the rails, and there’s no turning back.
The exact reasons why the article was removed, is unknown to us (share guesses in our Telegram chat), but something tells me that it is not that the material is constructed negatively against Apple. The article is written very freely, full of sharp thoughts, tongues and dots — this is not the style of Forbes, and, perhaps, Amateur blog on any Medium.
Regarding the content of the material — the analyst clearly went too far. Yes, it’s silly to deny that iPhone sales are falling, but you have to be blind not to see that Apple realized this a few years ago. Related to this is the emphasis of the Corporation on the services and software. In Cupertino are sitting is clearly one of the smartest people, there’s a huge office, responsible for risk analysis and further development. And I’m sure the information they have is clearly more than the analyst from Australia who moved to Ireland and from there decided to bomb the Apple.
By the way, on page RiskHedge this article either,there is also a small blog by the same author.
Yes, the reasons for the fall are now missing, and to see some of them does not have to be a trader with 10 years of experience. But nearing the holiday period, and hardly at the end of the year Apple will sell enough iPhones. Like it all or not, Apple device and accessories remain the most desired gift for the holidays.