Alright, alright. I get it, interwebs. iPhone sales are down. Even Apple’s Tim Cook was forced to admit iPhone sales are down. In China. There’s a recession brewing over there. Sales for everything are down.
I get it, interwebs. iPhones are on sale. Well, at least as on sale as anything from Apple gets. There are third party retailer discounts, special promotions, and even trade-in packages that didn’t exist before. Does anyone else not know why iPhone sales are down?
How. Much. Down?
That’s the $6.4-billion question. How much down? Apple says last quarter will miss previous guidance by about $7-billion; mostly due to the “R” word hitting China. To make up for the shortfall Apple has pushed iPhone sales everywhere else, but we still don’t know how much down and probably won’t find out until the company releases actual financial records for the previous quarter and then issues guidance for the current quarter.
John Naughton on the obvious:
You don’t need to be a computer scientist to work out why iPhone sales are down
Maybe Tim Cook lied to us about China? Maybe iPhone sales have been mostly flat for the past four years?
The slowdown at Apple should surprise no one given that most adults on the planet already have a smartphone
OK, there it is.
I understand the sentiment even if the math probably is wrong. The latest estimate say there or just over 5-billion internet users on earth, and roughly 4-billion smartphone users; so, not all adults, but most adults is OK. Except for Africa, maybe. India, too. More numbers to count.
But we get the idea. Saturation.
One level-headed observer had to point out that the sky hadn’t fallen: all that had happened was that Apple shares were down a bit.
7-percent seems to be the common estimate. Where are the estimates for Samsung and other Android smartphone makers.
Why is Apple being singled out for what appears to be an industry trend? Benedict Evans:
The mobile market is reaching saturation and so is the smartphone market, and Apple has won the high end of the smartphone market. This is not ‘the fall of Apple’ – it’s just the shift of smartphones to boring maturity, as we look for what’s next.
So, why are market analysts, and members of the anti-Apple technorati elite politburo castigating Apple for a slowdown in the smartphone business that affects everyone else?
We have precedent. Mac sales have been mostly flat for a few years, too. iPad sales are down from previous records. Yet, both continue to be leaders in their respective personal computer categories and Apple takes a commanding share of profits for both.
This is not the fall of Apple. A saturated market means fewer new customers and more customers who upgrade but not necessarily every year or two. In terms of the important metrics– revenue share and profit share– Apple this year looks like Apple from last year.
That should be worth something.
iPhone sales are down because the market for smartphone has become more saturated and there are signs of lousy economy spreading across the planet.
Move along. Nothing to see here.