As revenues decline, Apple is wondering why consumers seem to be losing interest. CEO Tim Cook blames it on “challenges in emerging markets” and “economic deceleration,” but is that the whole story?
While there are a number of factors that have contributed to the decline of Apple’s stock, one striking factor is the increased prices of their product. With the iPhone XS at a hefty $999 and iPad Pros starting at $799, prices for their latest products are cost-prohibitive to many, even if the devices have a host of cool features.
While Apple continue to increase prices, many consumers still have decently-functioning older iPhones. As one writer puts it,
Here’s the thing: phones are mature devices now. Unless your phone’s on its last legs or you really need the most bleeding-edge device, a new iPhone isn’t essential. It’s kind of like a TV. Do you need a new TV every year? Absolutely not.
And many appreciate still having headphone jacks and a home button. Others have grown suspicious of Apple since it was revealed that they were deliberately slowing down phones with each new update.
To increase revenue, Apple needs to stay in touch with consumers. They need to ensure that iPhones stay a price that the average person can afford, and offer new products to entice those who don’t need a new iPhone. We’ll see if that ingenuity that made Apple so successful still has a future. What do you think?