Remember Apple’s recent dive in the stock market? I outlined what happened in How 2019 Is Turning Out To Be Apple’s Own Terrible, Horrible, No Good, Very Bad Year.
Early 2019 started out bad for Apple Inc as members of the technorati elite politburo expressed misgivings for AAPL and declared the company’s latest and greatest to be the latest and greatest flop. iPhone XR. What happened?
Facts vs. Fiction
Yes, it’s an age old story; yellow journalism has been around for a century or two or twenty, and publications have yet to learn the lessons of making up so-called news to the detriment of facts.
- Wall Street Journal: The Phone That’s Failing Apple: iPhone XR
- ZDNet: Apple loses the plot with iPhone XR
- AndroidPit: iPhone XR: the flop that Apple deserves
- Wall Street Journal: The Best iPhone Apple Can’t Sell
See anything familiar?
Yes, the Apple naysayers were in full force and took a tidbit of false information and blew it up into what looked like facts but actually had no resemblance.
Where are the retractions?
Wait. What? How about some facts? As it turns out, Apple’s executives are wise and decided to do what all other smartphone makers do and ignore numbers. “No iPhone unit numbers for you!” said the Facts Nazi.
That aforementioned iPhone XR, the one with the word FLOP embedded somewhere in the screen, or maybe it was the back, but certainly on some app somewhere inside, was not such a flop after all.
Josh Lowitz of CIRP, which tracks such things:
iPhone XR continues to dominate US iPhone sales
Wait. What? Dominate? How is that possible from a flop? I’m searching for retractions now… still searching…
It remains the best-selling individual model again this quarter, after launch early in the December 2018 quarter.
Wait. What? iPhone XR has been a hit since it was launched last year? How can that be?
In the era of Photoshop, where you cannot believe what you see, and in the era of movie special effects that look better than an imaginary reality, numbers matter. Please note that Apple did not issue an earnings warning for the most recent quarter. What does that mean?
Same old same old financials on target.
We estimate an Average Selling Price of around $800, a decrease from the previous quarter
Yeah, Apple won’t quite make as much money on each iPhone sold and that explains all the sales we’ve seen recently on everything with an Apple logo on it. Apple’s high prices give the company more room to discount a product and still make a profit.
iPhone flop? Nope.
Apple will sell about 200-million iPhones in 2019 and remain the smartphone industry darling with the highest revenue and highest profit and highest customer satisfaction.
AirPower, maybe. Nah. It isn’t a flop if it can’t be bought, right?