I run a repair shop. We've repaired over 3,000 Apple devices for customers. We are always chatting with our customers, so we get a ton of feedback from them about what they're doing with their phones.
We hear a few things consistently:
1) Providers have switched from "free upgrades every 2 years" to a plan cost and a monthly phone cost, so people now really know how much their phone costs--and many would rather save the $30 a month than upgrade their phone. This started with T-Mobile a few years ago and now is how most phone plans work. This is having a huge impact on people's desire to buy new phones.
2) iPhone 5/5C/5S users have no desire to upgrade to a larger phone. The SE is going to solve some of this, but it'll more likely be a scenario of "I dropped my 5S in the toilet and it's completely dead, so I'll upgrade to a SE instead of dealing with the hassle of finding a legit used 5S." I don't expect to see a huge push toward the SE from current iPhone 5 users.
3) Repairs are so cheap, so easy and so effective. It's $79 for us to fix an iPhone 5/5C/5S screen right now, and we can fix it in less than 30 minutes typically. No reason to upgrade when your old one works just fine and you can get it fixed cheaply.
Interestingly, the SE screen is 1:1 compatible with the 5S screen, so the SE is coming out of the gate being cheap and easy to repair as well. I'm typically recommending the SE if people really want a new phone.
We also ask customers about 3D Touch (the new feature on the 6S/6S+) and if they're using it if they have a 6S. 99% of people have no idea what it is or how to use it. They bought a 6S/6S+ because it was pink. Yep, most of the 6S phones we see are rose gold, and that seems to be the #1 factor driving sales of that line. If they don't care about the pink and ask me what phone I recommend, I recommend buying a refurbished 6 over any of the 6S line. (We don't sell phones, so I have no horse in that race at all.)
3D Force Touch was one of those features I feel would have only caught on, if it was one of the original iPhone features. Tacking it on later, with little to no support in apps, makes it forgetware. I actually really like the functionality, and I completely forget it exists. There needs to be some type of small indicator reminder that a button HAS 3D touch.
Providers have switched from "free upgrades every 2 years" to a plan cost and a monthly phone cost, so people now really know how much their phone costs--and many would rather save the $30 a month than upgrade their phone.
Wasn't this why Apple was quietly introducting the "iPhone Upgrade Program"?
Seems like Apple realized the future will be a place where everyone just leases their equipment on a monthly basis and switches stuff in-and-out as they need to...including the carrier (gasp!)
> It's $79 for us to fix an iPhone 5/5C/5S screen right now
Interesting, since I have a 5s with a broken screen glass that I haven't bothered getting fixed yet. :)
It used to be quite a bit more, I think? Have you figured out how to separate the glass (etc) from the actual display, or have replacement display+glass packages just gotten cheaper?
(If you are replacing the display - is there any significant performance difference between the stock display and the replacement display?)
Repair shop owner here as well. Couldn't agree more people are just continuing to use their old phones. We have big companies even asking to continue to repair iPhone 4S phones to date.
aren't your customers a pretty small niche compared to the most of the Apple users in the US? Most of the people will go to apple store if they need a fix for their device instead of going to a local repair shop which will void their warranty. So the argument about people wanting/or not to upgrade to a new device a pretty subjective to your specific customer type, no?
> "I recommend buying a refurbished 6 over any of the 6S line"
I would not, upgrading to "S" was the biggest performance boost I've had, compared to regular 6 - it's blazing fast and on top of that I can't imagine myself without 3D touch app switching, live photos and text navigation, those do help a lot at least to me and most of the people I know.
I would add this to this as well to the new "forever leasing a phone" model, you have to get insurance which makes sense. However the monthly insurance premium can go up at any time. This just just happened to me. I received a letter from the insurance company the carrier uses - not the carrier informing me that the insurance is going up $2.00 more a month(it was $8.00 its now $10.00.) Thats not an insignificant percentage. This is despite never having to have made a claim for any damages or replacement to the phone.
I think the reason most 6S's are rose gold is that it's the new latest color - i.e. you want the latest, and also to message that to everyone else? Get a rose-gold phone.
Also, considering probably the vast majority of servicing of iPhones happens at an Apple genius bar, I'd say your (very informative) views of the population have some selection bias.
Hey Erica, hope you've been well!!! Do you have any thoughts on the software side of things?
Personally, I think Steve Jobs rolls in his grave every time yet another crappy iOS update gets issued. It's led to a general distrust of anything "forward-moving", and that's led to a distrust in the newer phones too.
Dont worry, Apple will force the upgrade the same way they always have. Make the next version of iOS so freaking slow on older devices that its unbearable to use. People that stay on iOS[789] will eventually be forced to upgrade in order to get their necessary app updates.
My poor iPad 2 is so slow on iOS9 that its unbearable to use for any length of time. A5's are unbearable, A6's are not far behind.
3D Force Touch has one really useful use, which is to go back to the previous app on the backstack. I use that constantly. But I use almost nothing each with 3D Touch.
I really hope #2 gets traction. It's been disappointing to see the SE not do as well as I wanted it to. I'm not an iPhone owner myself but I'm hoping the SE popularizes the "small" form factor phone again.
In your experience what's the usual time between battery replacements?
That's been the only "killer" for phones for me. With a decent case I feel like they otherwise last forever.
My personal upgrade cycle usually involves someone else's (ex: spouse or parent) phone breaking, giving them mine, and buying a new one. Otherwise I'd probably still be on an iPhone 4.
My parents only replaced their iPhone 5 when the battery wasn't holding a charge as well as they'd liked. So, they replaced it with a 5S (this was before the SE, but it was free with a contract anyway). They use it for calls and directions, but not much else so the 5S is more than adequate.
Yeah, I own a 5S and I have almost no desire to replace it other than to upgrade storage to 128 Gb. Even after 3 major iOS upgrades, all of my most used apps open close enough to instantly. - the time it takes to pull the phone out of my pocket is the biggest bottleneck at this point.
If I'm going to spend > $600, I expect my life to improve a little bit. I'll probably upgrade to the 7, mostly because I've gone without a case and have had some dings that do impact functionality, but I hope to go 4 or even 5 years with my next phone.
I don't think buyers had much choice in colors. We're a dev shop and we couldn't get basic silver / grey devices with the specs we wanted. All they had was gold or pink.
Anecdotal evidence also suggests that people like the 6 more than the 6S. It's nicer to hold in hands and it's quite a bit cheaper for basically the same phone.
It probably doesn't help that the subsidy model has completely changed. But personally, I think iPhone performance has hit a point where one doesn't really feel the need to upgrade right away. I was so ready to upgrade when the contract on my 4 expired. It was really a pain to use after a couple of years. But my 5S has now lasted me two and a half years and other than wishing I had more storage capacity, there's really nothing compelling in the new models for me to want to upgrade. The build quality and battery are so good that I don't feel like it's even getting worn out. The better cameras would be nice, but otherwise? I just can't justify the cost, much as I'd like to, so long as my 5S keeps performing.
I do think Apple needs to focus their money and efforts on improving their services and software integration. There's a lot to like in Apple services, but there's a lot of rough edges and weird gaps, and too often I feel like apps get written and then abandoned. If you bundle an app, it should have a dedicated team that keeps making it better, faster, easier to use all the time.
I also feel like Apple has a real chance to make a mark on the home automation market if they chose to do so. The best stuff out there is still pretty bad, and pretty much all of it spies on you. Based on how they've been adding context-aware features to iPhone in a very privacy-conscious way, Apple is the one company I would still trust to actually try to do home automation in a way that respects my privacy. And they have the money to invest in making it happen. But while I'm sure their hardware would be well-made, can they raise their software polish to the same level?
> I think iPhone performance has hit a point where one doesn't really feel the need to upgrade right away
I have a cheap 2014 Motorola Moto G and I have the same "problem". Yes, there are hundreds of modern phones out there which are several times faster and have way better hardware but the Moto G is fast enough for me.
I usually just browse the web, type a few messages in Whatsapp, take a few pictures, ... and the phone does all of this well enough so that I just don't have any reason to invest 500+ Euro in a new phone.
Another bonus is that if I accidentally drop my phone I can just buy a new one (or two) and it will still be cheaper than an iPhone or other similar phones.
Can anyone shed some light on why the subsidy model is going/has gone away? It seems to me cell providers would not want to stop essentially requiring 2-year contracts, so why have they? Fear of government action, or market competition? Or was the subsidy model actually bad for the networks somehow?
Apples service revenues are still growing 20% YoY.
Apple can and does generate a steady stream of revenue from existing devices. App Store revenue increased 35 percent year-over-year, and iCloud is also continuing to grow. Apple pay is adding 1 million new users per week. and they just announced the Apple Music has 13 million subscribers.
Apple's services unit is now the company's second largest category during the recent quarter, ahead of Mac and iPad sales
The only iDevice that's not still in use in my family is my first, an iPhone 3G. My youngest has my 3GS. The 4 is with my father in law, etc. My first iPad, a v2, is with my sister in law in China, she uses it to Skype to us. These things just keep on going.
I have an iPhone 5 (not S) and the performance is starting to get on the frustrating side. But it's only now getting to the point where that is an issue.
Incredible that this is the first time in 13 years that Apple hasn't posted quarterly growth. I'm sure there will be lots of "Apple has lost its ability to innovate" articles based on this, but growing for the last ~52 straight quarters is insane.
And I don't think one quarter without growth is enough evidence to conclude "Apple may be reaching the saturation point among potential customers in some countries" or "other smartphone makers using Google’s Android operating system continue to challenge the company with powerful, lower-price devices."
There is something fundamentally wrong with our system that "growth" is used as the main metric for assessing business success. It's growth for the sake of growth (and more $), and not deploying business to solve hard customer problems and to make the world a little bit better.
>I'm sure there will be lots of "Apple has lost its ability to innovate" articles based on this
Given that people have already been writing those articles for a couple years, i'm sure a drop in their revenue and missed estimates won't make them stop.
The expectation was $2.00 EPS, Apple reported $1.90. AAPL is down in after-hours trading right now, at 95.91 from 104.35 at market close (as of 5:20 PM).
This is a significant earnings report as it's the first to break 13 years of continuous growth. Revenue was down 13%.
• Q2 EPS: $1.90, down 22% YoY, versus expectations of $1.99
• Q2 revenue: $50.6 billion, down 13% YoY, versus expectations of $52 billion
• Gross margin: 39.4% versus 40.8% last year and expectations of 39.47%
• iPhone unit sales: 51.2 million, down 17% YoY, versus expectations of 50.7 million
• iPhone ASP: $644.25, down 2% YoY, versus $651 expected
• iPad unit sales: 10.2 million, down 19% YoY, versus expectations of 9.4 million
• Mac unit sales: 4.03 million, down 11% YoY, versus expectations of 4.6 million
• Q3 revenue guidance: $41 billion and $43 billion, versus expectations of $47.35 billion
I don't think anyone was surprised though, around 2014 we saw the writing on the wall. I mean take the Nexus 5, I have plenty of friends who have one and it's basically like they bought a microwave. It just works, it's fine, and they're expressing 0, and I really mean 0 interest in upgrading their microwave. They'll keep it for as long as the battery lasts and they don't break it. And that's really a last-generation phenomenon, before two years ago I was looking forward to new mobile tech. Now the changes aren't meaningful anymore.
And now people are openly expressing it, too. Like the CEO of sony, who spoke about the end of innovation in smartphones a few months ago. I mean take my dad, he just bought an LG G3 for $8 a month on a 2 year contract. Now this phone is 2 years old, not top of the line... but it's $8 a month and it comes with a nice screen that's almost double the PPI of the latest iphone, 3gb of ram, a nice snapdragon 801 chip, 3000 mAh battery, it just works fine and it's just really cheap. In two years, the latest G5 will be $200 too, and you'll buy G3 like phones for $100. What can we innovate in smartphones that's worth $700 to most people? That used to buy you a magical device that could do things nothing else could, in your pocket just a few years ago.
Anyway, I wonder what's next for Apple. There's no rumours of anything happening except its car. Wearables will expand. But they're all late or super late to market in these product categories. That's not a bad thing, they'll obviously make money, but it's not comparable to creating a real smartphone industry.
In this thread: lots of people making unfounded assumuptions and drawing dumb conclusions when anyone who has been paying attention knew this was coming as Apple even said so last quarter.
The last year quarter was buoyed by previous quarter supply constraints causing a lot more sales in many categories and products.
It's not that this quarter was bad (it was fine) it's that last years quarter was SO GOOD and last quarter had no major supply constraints that we see this.
Basically - Apple has got so good at the supply chain it's hurting their numbers for quarters with no new releases.
But sure, start speculating about [insert your favorite phone] and writing screeds about phone subsidies/performance/innovation/whatever. It won't be right... but you'll feel better I guess.
50.6b net income on 39.4% gross margins. A bit early to be writing Apple's obituary or anything even close. Retail is suffering nationwide and I suspect Apple is caught up in this decline.
The era where cell phone companies offered phone subsidies as trade for a customer's long term commitment has ended. The impact this is having and will continue to have on smartphone sales is profound. It is much more likely that customers will upgrade their devices less frequently. We are already beginning to see the impact in Apple and Samsung earnings.
>Its newest smartphone, the four-inch iPhone SE, went on sale in late March, too late to affect the most recent quarterly results, but analysts hope to get more insight into how it is selling.
Went to the Apple Store in my large metro and they were out of almost every model. The associate searched other stores and there wasn't much within 1500 miles. Anecdotal, but it looks like the demand is outpacing the supply of the iPhone SE. It'll be interesting to see the sales numbers.
For me, the main reason to upgrade phones is to get a better camera, so I can take better pictures of my kids. Other than that, most of the features are "nice to have". Don't get me wrong, I like Touch ID, I like the big screen of the plus (but not the size and slipperiness of the phone), but nothing has been a compelling upgrade, other than camera improvements.
In many ways, this is a credit to Apple doing a great job. On the other hand, the real challenge with driving iOS upgrades is software. There's no killer app that requires the latest hardware, unless you care about games and maybe a few drawing apps on the iPad.
So anyone thinking planned obsolesce might move itself up the Apple priority list? Their per quarter revenue is still massive, but Wall Street always expects more. At its current rate of stock buy back, Apple could buy back all of its stocks and go private in a few years. They could rid themselves of market fluctuations in regard to stock and pump out products while continuing making the ridiculous amounts or revenue and overcome the need to take shortcuts for the sake of Wall Streets obsession with non-stop growth.
> The Company also announced that its Board of Directors has authorized an increase of $50 billion to the Company’s program to return capital to shareholders. Under the expanded program, Apple plans to spend a cumulative total of $250 billion of cash by the end of March 2018.
My god, that $50 billion expansion is 7% of the company at the current market cap.
I'm not surprised. I think Apple underestimated the demand for the iphone SE 64 GB. Its been out of stock in most stores since it was released. Apple's shareholders should be asking why can't anyone buy it in a store? Also many people don't want wait two weeks to receive their phone when they buy it online.
The key numbers from the Press Release:
The Company posted quarterly revenue of $50.6 billion and
quarterly net income of $10.5 billion, or $1.90 per diluted
share. These results compare to revenue of $58 billion and
net income of $13.6 billion, or $2.33 per diluted share, in
the year-ago quarter. Gross margin was 39.4 percent compared
to 40.8 percent in the year-ago quarter. International sales
accounted for 67 percent of the quarter’s revenue.
So not really a surprise from what they announced at previous quarter.
I love my iPhone 6+ but while overall the ecosystem is getting better, the device is more laggy and glitchy than previous models.
Apple Pay always gets triggered by accident when I try to unlock using the fingerprint, and once in a while random apps seem to heat up the phone and drain the battery before I realize what is going on.
I think small things like the minor points of perceived quality that I'm describing can have a big impact on sales. When a phone costs $800 people expect a very solid experience with no glitches.
Sales faltering...just wait until the margins dip. Hardware margins the size Apple has enjoyed are incredibly rare and never have lasted with any company, period. Their hardware margins are on par, or even above many software vendors, which is just unsustainable. It's a great product, but the upgrade cycle is lengthening, and margins are going to fall. Same happened to the PC, same started to happen with the tablet, and the same will happen to the phone market.
Sweet, time to buy more. I was holding off since it was obvious that prices over 100$/share without any new products to excite the imagination of traders with no technology background wasn't going to last forever. It' always interesting to me how wall street lacks any depth in their analysis. Direct sales and revenues are basically the only metrics they look at. Which is fine for a small company but when you are looking at a 700B company, spending 8B a year in R&D being that shortsighted is almost funny.
[+] [-] ericabiz|10 years ago|reply
We hear a few things consistently:
1) Providers have switched from "free upgrades every 2 years" to a plan cost and a monthly phone cost, so people now really know how much their phone costs--and many would rather save the $30 a month than upgrade their phone. This started with T-Mobile a few years ago and now is how most phone plans work. This is having a huge impact on people's desire to buy new phones.
2) iPhone 5/5C/5S users have no desire to upgrade to a larger phone. The SE is going to solve some of this, but it'll more likely be a scenario of "I dropped my 5S in the toilet and it's completely dead, so I'll upgrade to a SE instead of dealing with the hassle of finding a legit used 5S." I don't expect to see a huge push toward the SE from current iPhone 5 users.
3) Repairs are so cheap, so easy and so effective. It's $79 for us to fix an iPhone 5/5C/5S screen right now, and we can fix it in less than 30 minutes typically. No reason to upgrade when your old one works just fine and you can get it fixed cheaply.
Interestingly, the SE screen is 1:1 compatible with the 5S screen, so the SE is coming out of the gate being cheap and easy to repair as well. I'm typically recommending the SE if people really want a new phone.
We also ask customers about 3D Touch (the new feature on the 6S/6S+) and if they're using it if they have a 6S. 99% of people have no idea what it is or how to use it. They bought a 6S/6S+ because it was pink. Yep, most of the 6S phones we see are rose gold, and that seems to be the #1 factor driving sales of that line. If they don't care about the pink and ask me what phone I recommend, I recommend buying a refurbished 6 over any of the 6S line. (We don't sell phones, so I have no horse in that race at all.)
[+] [-] overcast|10 years ago|reply
[+] [-] joezydeco|10 years ago|reply
Wasn't this why Apple was quietly introducting the "iPhone Upgrade Program"?
http://www.apple.com/shop/iphone/iphone-upgrade-program
Seems like Apple realized the future will be a place where everyone just leases their equipment on a monthly basis and switches stuff in-and-out as they need to...including the carrier (gasp!)
[+] [-] johansch|10 years ago|reply
> It's $79 for us to fix an iPhone 5/5C/5S screen right now
Interesting, since I have a 5s with a broken screen glass that I haven't bothered getting fixed yet. :)
It used to be quite a bit more, I think? Have you figured out how to separate the glass (etc) from the actual display, or have replacement display+glass packages just gotten cheaper?
(If you are replacing the display - is there any significant performance difference between the stock display and the replacement display?)
[+] [-] jv0010|10 years ago|reply
[+] [-] usaphp|10 years ago|reply
> "I recommend buying a refurbished 6 over any of the 6S line"
I would not, upgrading to "S" was the biggest performance boost I've had, compared to regular 6 - it's blazing fast and on top of that I can't imagine myself without 3D touch app switching, live photos and text navigation, those do help a lot at least to me and most of the people I know.
[+] [-] bogomipz|10 years ago|reply
[+] [-] r00fus|10 years ago|reply
Also, considering probably the vast majority of servicing of iPhones happens at an Apple genius bar, I'd say your (very informative) views of the population have some selection bias.
[+] [-] MicroBerto|10 years ago|reply
Personally, I think Steve Jobs rolls in his grave every time yet another crappy iOS update gets issued. It's led to a general distrust of anything "forward-moving", and that's led to a distrust in the newer phones too.
Would your customers agree?
[+] [-] jdhawk|10 years ago|reply
My poor iPad 2 is so slow on iOS9 that its unbearable to use for any length of time. A5's are unbearable, A6's are not far behind.
[+] [-] kenjackson|10 years ago|reply
[+] [-] rpgmaker|10 years ago|reply
[+] [-] koolba|10 years ago|reply
That's been the only "killer" for phones for me. With a decent case I feel like they otherwise last forever.
My personal upgrade cycle usually involves someone else's (ex: spouse or parent) phone breaking, giving them mine, and buying a new one. Otherwise I'd probably still be on an iPhone 4.
[+] [-] tjl|10 years ago|reply
[+] [-] saturdaysaint|10 years ago|reply
If I'm going to spend > $600, I expect my life to improve a little bit. I'll probably upgrade to the 7, mostly because I've gone without a case and have had some dings that do impact functionality, but I hope to go 4 or even 5 years with my next phone.
[+] [-] tammer|10 years ago|reply
[+] [-] _spoonman|10 years ago|reply
[+] [-] radley|10 years ago|reply
[+] [-] uptown|10 years ago|reply
[+] [-] the_mitsuhiko|10 years ago|reply
[+] [-] skywhopper|10 years ago|reply
I do think Apple needs to focus their money and efforts on improving their services and software integration. There's a lot to like in Apple services, but there's a lot of rough edges and weird gaps, and too often I feel like apps get written and then abandoned. If you bundle an app, it should have a dedicated team that keeps making it better, faster, easier to use all the time.
I also feel like Apple has a real chance to make a mark on the home automation market if they chose to do so. The best stuff out there is still pretty bad, and pretty much all of it spies on you. Based on how they've been adding context-aware features to iPhone in a very privacy-conscious way, Apple is the one company I would still trust to actually try to do home automation in a way that respects my privacy. And they have the money to invest in making it happen. But while I'm sure their hardware would be well-made, can they raise their software polish to the same level?
[+] [-] yoodenvranx|10 years ago|reply
I have a cheap 2014 Motorola Moto G and I have the same "problem". Yes, there are hundreds of modern phones out there which are several times faster and have way better hardware but the Moto G is fast enough for me.
I usually just browse the web, type a few messages in Whatsapp, take a few pictures, ... and the phone does all of this well enough so that I just don't have any reason to invest 500+ Euro in a new phone.
Another bonus is that if I accidentally drop my phone I can just buy a new one (or two) and it will still be cheaper than an iPhone or other similar phones.
[+] [-] shawkinaw|10 years ago|reply
[+] [-] abhi3|10 years ago|reply
Apple can and does generate a steady stream of revenue from existing devices. App Store revenue increased 35 percent year-over-year, and iCloud is also continuing to grow. Apple pay is adding 1 million new users per week. and they just announced the Apple Music has 13 million subscribers.
Apple's services unit is now the company's second largest category during the recent quarter, ahead of Mac and iPad sales
[+] [-] simonh|10 years ago|reply
[+] [-] balls187|10 years ago|reply
Also the touch-id capabilities are significantly improved.
[+] [-] wvenable|10 years ago|reply
[+] [-] Illniyar|10 years ago|reply
[+] [-] bsirkia|10 years ago|reply
And I don't think one quarter without growth is enough evidence to conclude "Apple may be reaching the saturation point among potential customers in some countries" or "other smartphone makers using Google’s Android operating system continue to challenge the company with powerful, lower-price devices."
[+] [-] mjfern|10 years ago|reply
[+] [-] allisthemoist|10 years ago|reply
[+] [-] Esau|10 years ago|reply
[+] [-] notatoad|10 years ago|reply
Given that people have already been writing those articles for a couple years, i'm sure a drop in their revenue and missed estimates won't make them stop.
[+] [-] JamilD|10 years ago|reply
This is a significant earnings report as it's the first to break 13 years of continuous growth. Revenue was down 13%.
• Q2 EPS: $1.90, down 22% YoY, versus expectations of $1.99
• Q2 revenue: $50.6 billion, down 13% YoY, versus expectations of $52 billion
• Gross margin: 39.4% versus 40.8% last year and expectations of 39.47%
• iPhone unit sales: 51.2 million, down 17% YoY, versus expectations of 50.7 million
• iPhone ASP: $644.25, down 2% YoY, versus $651 expected
• iPad unit sales: 10.2 million, down 19% YoY, versus expectations of 9.4 million
• Mac unit sales: 4.03 million, down 11% YoY, versus expectations of 4.6 million
• Q3 revenue guidance: $41 billion and $43 billion, versus expectations of $47.35 billion
[+] [-] IkmoIkmo|10 years ago|reply
I don't think anyone was surprised though, around 2014 we saw the writing on the wall. I mean take the Nexus 5, I have plenty of friends who have one and it's basically like they bought a microwave. It just works, it's fine, and they're expressing 0, and I really mean 0 interest in upgrading their microwave. They'll keep it for as long as the battery lasts and they don't break it. And that's really a last-generation phenomenon, before two years ago I was looking forward to new mobile tech. Now the changes aren't meaningful anymore.
And now people are openly expressing it, too. Like the CEO of sony, who spoke about the end of innovation in smartphones a few months ago. I mean take my dad, he just bought an LG G3 for $8 a month on a 2 year contract. Now this phone is 2 years old, not top of the line... but it's $8 a month and it comes with a nice screen that's almost double the PPI of the latest iphone, 3gb of ram, a nice snapdragon 801 chip, 3000 mAh battery, it just works fine and it's just really cheap. In two years, the latest G5 will be $200 too, and you'll buy G3 like phones for $100. What can we innovate in smartphones that's worth $700 to most people? That used to buy you a magical device that could do things nothing else could, in your pocket just a few years ago.
Anyway, I wonder what's next for Apple. There's no rumours of anything happening except its car. Wearables will expand. But they're all late or super late to market in these product categories. That's not a bad thing, they'll obviously make money, but it's not comparable to creating a real smartphone industry.
[+] [-] abritinthebay|10 years ago|reply
The last year quarter was buoyed by previous quarter supply constraints causing a lot more sales in many categories and products.
It's not that this quarter was bad (it was fine) it's that last years quarter was SO GOOD and last quarter had no major supply constraints that we see this.
Basically - Apple has got so good at the supply chain it's hurting their numbers for quarters with no new releases.
But sure, start speculating about [insert your favorite phone] and writing screeds about phone subsidies/performance/innovation/whatever. It won't be right... but you'll feel better I guess.
[+] [-] rrggrr|10 years ago|reply
[+] [-] blondie9x|10 years ago|reply
[+] [-] cthulhujr|10 years ago|reply
Went to the Apple Store in my large metro and they were out of almost every model. The associate searched other stores and there wasn't much within 1500 miles. Anecdotal, but it looks like the demand is outpacing the supply of the iPhone SE. It'll be interesting to see the sales numbers.
[+] [-] reubenswartz|10 years ago|reply
In many ways, this is a credit to Apple doing a great job. On the other hand, the real challenge with driving iOS upgrades is software. There's no killer app that requires the latest hardware, unless you care about games and maybe a few drawing apps on the iPad.
[+] [-] FreedomToCreate|10 years ago|reply
[+] [-] tma-1|10 years ago|reply
My god, that $50 billion expansion is 7% of the company at the current market cap.
[+] [-] jonknee|10 years ago|reply
[+] [-] _nullandnull_|10 years ago|reply
[+] [-] yoda_sl|10 years ago|reply
So not really a surprise from what they announced at previous quarter.
[+] [-] grandalf|10 years ago|reply
Apple Pay always gets triggered by accident when I try to unlock using the fingerprint, and once in a while random apps seem to heat up the phone and drain the battery before I realize what is going on.
I think small things like the minor points of perceived quality that I'm describing can have a big impact on sales. When a phone costs $800 people expect a very solid experience with no glitches.
[+] [-] partiallypro|10 years ago|reply
[+] [-] c-slice|10 years ago|reply
[+] [-] revelation|10 years ago|reply
It took PCs 20+ years to get good enough, smartphones managed the same in much less than 10 it seems.
[+] [-] fataliss|10 years ago|reply