A number of recent events are all an indicator that Apple may be going through one of their biggest rough patches, marking the end of the popularity boom for their iPhones. From sale statistics, the people’s reactions and other factors show, it looks like iPhone X is the culprit. There are a number of things wrong with it that do not get as many people interested as they did before and we are going to analyze every aspect in great detail.
Before we get into the more analytical aspect of this steady decline, we would like to talk about the price of the iPhone X first. On the market, you can find the 5.8-inch iPhone X at the low low price of 999 dollars. This is 300 dollars more than the price of the iPhone 8 and 200 dollars more than the price of the iPhone 8 Plus, marking iPhone X the priciest phone that Apple has ever released. Now, is this price justified? Do people want to spend a thousand dollars for it? What are they getting for their money?
The customers’ complaints
While was marketing the iPhone X to the public, apart from their processor or even their camera, they pushed the Face ID feature, which was supposed to get people excited. And yes, it did, but you cannot expect someone to give out that much cash in order to get a feature that will allow them to unlock their phones with their faces and send goofy emojis in chat groups that now speak and move to the recorded movements of the user.
It is simply not enough. And we have already seen this happening with other phones on the market as well since at the moment we are going through a period where there are no breakthrough features coming out which makes people keeping using their older phones since they are ‘good enough’ instead of spending money to get the latest smartphone. And this not only got Apple’s sales to decline, but it also affected other major phone companies, including Samsung.
Apple’s sales in the first quarter
From what analysts have seen, it looks like Apple has managed to sell only 54 million iPhones in the first quarter, 3.2 million more than it did during the same quarter last year. Yes, their sales are slightly better but this is a far catch from the massive growth that was expected from Apple and this can be seen from the way in which investors are reacting to this news.
The company’s stock value has dropped by a staggering 8 percent in the past two months. Not a lot, but an indicator that investors are slowly losing their faith that Apple can dish out the sales that it was believed it could have.
A problem with Apple’s suppliers
It looks like we can see warning signs being fired from all sides, including the major suppliers that have a contract with Apple in order to supply the parts for the company’s phones. One of these suppliers, TSMC, has stated that their company can expect to see even lower sales in the second quarter of the year, all due to the low demand from their mobile sector.
This company is known to provide chips that go into some of Apple’s iPads and iPhones. SK Hynix, a South Korean company that makes chips, has also stated that they are seeing a drop in their sales and AMS, a company from Austria that is responsible for making the 3D sensors for phones, has said that the order from one of their major customers are low, an indicator that they could probably be talking about Apple.
Apple’s growth to stem in a new direction
For those that do not know, most of the revenue that Apple has comes from its iPhone series and the same could be said about its profit margin. We are now seeing Apple try to enter other areas with their products such as their HomePod or even the fact that they are advocating for having iPads in schools.
From what the first quarter reports are indicating, only 9.6 percent of the sales are coming from services and the majority is coming from their phones.
However, even with Apple trying to evolve more into a different direction their sales are still going to see a decline this year and very possibly next year as well.
Plans for the future – iPhone X successor
It is becoming increasingly more obvious that Apple is aware that their iPhone X missed the mark so they are already working on making up for lost ground by deciding to add improvements to the successor in the X line. Ming-Chi Kuo, a KGI Securities analyst, has said that the nest phone that they are working with will feature a stronger display screen.
Now, both iPhone users and people that know people using iPhone have seen at least at one point during their lives a cracked iPhone screen, one of the peskiest and most annoying things to get fixed. So, by replacing that display with more reinforced one things could be balanced out.
Cover Glass Sensor technology will also be used, moving the touchscreen sensors on the glass, making the glass more resistant and the phone lighter as well. However, if they do not add other improvements as well this could still be all for nothing but we will have to wait until the 2019 iPhones will be coming out in order to see this technology in real life.