‘Apple missed the mark because it missed the market’

A rant from a friend of the blog who’s been traveling a lot overseas:

Apple blew it… with pricing.

China is now past Apple… people get demerits for buying Apple devices, plus they are proud, plus Chinese phones are so good and half the price.

Most importantly, Europe is really moving away from Apple. Not only they are going into recession and $1,300 phone seems absurd, Chinese brands (at half the price) are getting accepted. I go there every month, big big change, Huawei advertising plastered everywhere.

Apple world is shrinking.

My take: Anecdotal, of course. But these are signals worth watching.

10 Comments

  1. Kirk Burgess said:
    Seems Hyperbolic / FUD-tastic

    1. “$1300 iphone” is for a maxed out XS Max 512GB . The XR (With most of the bells and whistles of the XS, far surpassing performance of high end competitors) – starts at just $749 – Cheaper than the Hiuawei Mate 20 featured in that photo.

    2. “People get demerits for buying Apple devices” I can find no confirmation of anything like this at all – is there a source for this claim? This would be major news that will be covered extensively by the media if it did infact turn out to be true.

    3. “Europe is really moving away from Apple” Meanwhile, Apple in its pre-earnings announcement stated: “We also expect to set all-time revenue records in several developed countries, including the United States, Canada, Germany, Italy, Spain, the Netherlands and Korea” In case anyone missed my point: Germany, Italy, Spain & Netherlands are all in Europe, and they are at all time high Apple revenue record apparently, so i’m doubting the notion that Europe is “really moving away from Apple”

    3
    January 24, 2019
    • Aaron Belich said:
      Kirk, that price might be with conversion between HKD or the Yuan comapred to USD… that said, I still agree with ya.

      0
      January 24, 2019
  2. Kirk Burgess said:
    Forgot to add:

    4. “Apple World is shrinking” Apple management: “Install base grew by more than 100 million devices. FYI: “Shrinking” is pretty much impossible if install base is growing.

    1
    January 24, 2019
  3. Rick Raphael said:
    Fixing an overpriced product is easy (if in fact that’s really a problem). Adjust your margins a little.
    When you sell a product that lasts 3-5 years your real interest in in growing the installed base so you can sell more ancillary products ( the legendary razor blades) every month. I think many would be surprised how much they spend on Apple store products and services each year. I was.

    0
    January 24, 2019
  4. Fred Stein said:
    Agree: Anecdotal… worth watching.

    Huawei is a fierce competitor. Their founder was an officer in the people’s Army. They are major source of pride in China. They have the talent, money, the will and government’s support. They, and Xi’s government, share immense global ambitions.

    But we don’t see them. They are effectively banned here in the US both for infrastructure and devices. The impact on Apple is not just China but also emerging markets.

    Finally, in China, people use WeChat, not iOS or Android.

    0
    January 24, 2019
    • Gregg Thurman said:
      WeChat is a crazy effective online service. But as it’s features expand so to will be handset OS support requirements. In this Android, no matter the Android manufacturer, will be handicapped by the inability to upgrade Android handsets.

      I’m not as enamored with the growth potential in China as many are. Yes, it would be nice to sell twice as many iPhones, but it isn’t crucial that Apple do so.

      With Apple’s Services strategy it is more important to grow the size of its installed base, than it is to sell the most new handsets. Even in China the iOS installed base continues to grow through the same dynamic that exists in the west.

      0
      January 24, 2019
  5. George Ewonus said:
    With friends like that, who needs enemies.

    1
    January 24, 2019

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