What Really Happened with the iPhone X Sales? Is the Situation Really that Bad?
Suppliers’ testimonies against Cook’s report
All doesn’t look too rosy and booming in the Asian branch of Apple Inc. as those familiar with the company are sharing discouraging news about the progress in the iPhone’s patronage. If the report being sent to Longbow Research is anything to go by, then the season of depreciation and fixed sales may linger throughout the most part of 2018. One of the informants from the Asian zone told researchers that there were poor sales recorded for iPhone X when the holiday period was on. He said they were disappointed because there was a low number of orders for 1Q, quite the contrary to what they had expected in the past before the big release.
On the other hand, Apple’s headquarters is all about the positive vibes and good news, as the chief executive, Tim Cook, reported encouraging patronage. According to the overall executive who spoke to analysts while giving them the news on the development, Apple is excited to announce the largest sales ever to be recorded by the tech giant in a quarter, because there was a fresh history of the best records of profits and income for Apple.
However, no amount of cover-ups can shield the reality from the observers and stakeholders in the tech industry. Cook may be right about the financial returns, but it’s not that easy. The tool that is helping the company to make so much money is the increased prices of iPhones, $1,000 price tag on one piece of iPhone X is doing all the magic. In reality, Apple is not getting the much expected large orders and this wasn’t the case in the past. Statistics show the declining percentage to be 1% during the previous quarter.
Researchers and analysts are surprised when the workers who are familiar with the market in the Asian production and supply zone of Apple gave a contradictory report which differs from the one given by Cook, in the sense that the sales are discouraging. When analysts working for Longbow Research, Gausia Chowdhury and Shawn Harrison, approached some of them for information, they expressed their worries that this time of diminishing and fixed sales may possibly remain for as long as the most part of this year.
The Truth Needs to be told
The two researchers, Shawn and Gausia, can’t make public the names of these sources, nor the supply industries that employ them, and no particular identities were attached to their reports, due to the sensitive nature of the issue and every marketer for Apple must sign a very strong agreement legal paper to keep vital information secret, in order to stop indiscriminate talking about market performances.
However, some people mentioned the unfavorable commercial period of decrease. These people who work in firms such as Jabil and Cirrus Logic have perfect knowledge about the right quantities of iPhone that must be manufactured by Apple to enable it to survive the bottleneck in demand.
One of them said that the low sales on 1Q experienced the most terrible period than in the past sales, and this situation is worse more than the previous year. BI Intelligence also added that the month of March recorded a quarter of decrease and they are awaiting fixed manufacturing this year.
Another supplier believes that Apple may soon lose the benefits it’s gaining from the inflated price tag of $1,000, which is raking in spare earnings placed on iPhone X when it stops flowing. One source explained the likely reason for this, and it’s because the average prices of sales went through an increase when 4Q was introduced and that was due to the presence of X. However, there will be a decline in average price sales at the quarterly period in March, because X now has a reduced market share.
As for Longbow, the research company is sitting on the fence as far as Apple is concerned. When evaluating their calculations of iPhone earnings, they cut down the sales of every piece to 218.9 million, jump 1 percent, in the calendar Q1, ie, the fiscal period of Q2, as against anticipations of increase at 6 percent. There was a reduced expectation of the analysts’ agreement of 3 percent, against the boost in the whole year up to 2 percent.
When speaking with stakeholders, the two analysts noted that the latest iPhone SE2 will be produced. Apple makes iPhone SE its least and most affordable phone. Shawn and Gausia explained that a new SE2 is still being deliberated upon. Another source hinted a negotiation on the prototype of iPhone SE2 devices.
More observers and sources are still talking regarding its demand and supply. One observed that iPhone 8 performed way better because of the improvements they recorded at the end of the first quarter in March.
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