iPhones Are Losing In This Era And Will Continue To Do So Until They Accommodate Lower Income Consumers
Apple is not willing to meet the needs of poorer consumers.
Apple iPhone announced it will turn down the price of products iPhone XS and iPhone XR. According to Apple, the limited offer said that the trade-in iPhone XR starts at $449 and iPhone XS starts at $699, nearly half of original sales prices. If you have an iPhone that is not necessary to use, the trade-in value can bring at most more than $100 for a new version.
Apple stock price also decreased due to the unfavorable prospect of the financial report of the iPhone sales. iPhone has long been seen as the most important profit-making tool for Apple. Declining iPhone sales illustrated that the company now goes through a struggling time to make innovations like Steve Jobs. The lack of the new surprising function equipped into the iPhone alarmed the company's future.
In Steven Jobs' era, the innovation came from the man himself instead of a team and the entire company. Although Apple can hire the best technicians, engineers, sales guys, etc., the premise is that the company should earn enough money first. The money sources from the sales of the electronic products are correlated closely to the products themselves. And the products are related to the stock price which the investors keep observing based on the sales report.
Apple may not face the crisis for a short while. However, the long term risk is unavoidable. Other brands are implementing different strategies. Samsung and Huawei introduced various price levels for phones to satisfy more customers. The prices cover both affordable and less affordable groups of consumers.
Nevertheless, Apple is not willing to meet the needs of less affordable consumers and they insisted on sell higher priced iPhones, which convince the public that the prices of the iPhone will have the expectation to increase in the future.
It is suggested that the company can adjust the price accordingly. They are taking action, such as the trade-in, but it is far not enough.
