Why is apple iPhone X so expensive or good sales?

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 Why is apple iPhone X so expensive or good sales?


The key is, according to Apples second quarter report, iPhone sales in the first quarter were 52 million 200 thousand, only 3%, but the revenue from iPhone was over $38 billion, up 14% from the same year. Obviously, the main driving force is iPhoneX. By contrast, the global smartphone market is shrinking, and only iPhoneX is in the opposite direction. Now the question is coming. Why can iPhoneX be so successful when it sells so expensive? Supply chain news can not be simply turned into a dismal sales volume. Before answering the question of why iPhoneX is successful, say iPhoneX is not selling and bad sales, and how the price is too high is the biggest failure is widely spread. Why did the famous financial media mentioned so easily and hastily report that iPhoneX could not sell? To some extent, it is because of some of the grapevine, and the people who get the grapevine know little about the complex global supply chain of apple. However, the complexity of Apples global supply chain itself is hard to read easily. In January this year, the Nikkei reported the first time that they learned from certain channels that sales of iPhoneX during the holiday shopping season were disappointing. In fact, iPhoneX is the most popular smartphone in the quarter. Followed by the Wall Street journal, the Wall Street Journal said Apple is substantially reducing production orders, a sign that demand is less than expected. However, the order reduction obviously can not be directly translated into unsalable, nor can it be interpreted as weak demand. Because of the news release of well-known media, a large number of iPhoneX sales poor impression was widely spread, and basically used the reduction of orders as a reason to think that iPhoneX too expensive is not sold at all. Again, last year was not the same example, when the Nikkei announced that Apple had slashed iPhone7s orders, but the fact was that iPhone7 had achieved a new growth and brought a record revenue number for the apple in the quarter. In fact, every generation of iPhone, including iPhone6s and iPhone5s, can always hear news of the failure of the iPhone before the apple is published, each of which is one of the best - selling models of a single quarter, and the single machine sales beat all the machines including the flagship machine and the cheap machine. In short, Apples cut orders message to the supply chain, if interpreted directly as dismal sales volume, is a mistake. Is the price too high to be equal to sale? Many analysts began to find reasons for the widespread impression that iPhoneX sales were bad. A large number of analysts believe that iPhoneX is too high for $999, which is a disappointing price, because the average consumer will not consider the high price of consumer electronics. Of course, many analysts are not fully aware of the iPhoneX failure because, according to Apples history, high priced products tend to bring a sustainable high profit margin, and revenue will not be too bad. However, from Apples history, Apple has a lot of products that are priced very high but sell very well, even upgrading conversion rate and customer satisfaction are very high. So why do analysts insist that iPhoneX is pricing if it cant sell? In fact, this is also based on the conventional analysis of electronic product pricing, examples of many examples, such as Microsoft Surface tablet and Google Pixel mobile phone, although the reputation is very high, but because of high pricing and unable to achieve beautiful sales figures, the manufacturer not only did not make considerable profits, but also may be due to product value and pricing. Negative comments, low satisfaction. But Apple has long focused on high-end product lines, pricing has always been a high level of industry, and many users still pay for it. Years ago, iPod was such a product. The first generation of iPhone was also priced at high prices. When the first generation of iPhone was released, Ballmer, who was at the time of the first generation of Microsoft CEO, laughed at Apple, thinking that Apple was only good at putting forward and executing ideas, but it was not equal to succeed in pushing the overpriced and inefficient products to the market. Ballmer also said that 499 and 599 dollars in iPhone are useless except for the apple brand. It is a very common product, other manufacturers can do it and lower prices. IPhone is not likely to sell one. As we all know, iPhone not only sells well, but also changes the smart phone world. On the contrary, many mobile phone manufacturers in the same field want to integrate Apple mode, but failed, including Microsofts own WindowsPhone phone. To tell you the truth, iPhones price of $999 has appeared a few years ago, and the price of the purchase is quite a few. These models are high storage capacity of iPhone6, iPhone6s and iPhone7Plus, and are sold for more than $950. Whats interesting is that when last years iPhoneX was priced at $999, many analysts argued that Apple should not sell the most expensive iPhone ever. Why does Apple dare to sell iPhoneX for that high price? One of the reasons is that consumers rarely pay for expensive Android phones. For example, few people choose Samsung more than $1000, and before Apple releases the iPhone6 and 6Plus models, the price of Samsungs flag is higher than iPhone. However, the top matching model for Samsung, which sells for more than $700, is rarely asked, and today the main or low - end models of Samsungs mobile phone sales are available, so the average selling price of Samsung mobile phones is only about $200. Like Samsung, many domestic and foreign mobile phone manufacturers also want to be able to squeeze into the high-end smartphone market, but there are few examples of success in these years, much less than 5%, the average price of mobile phones remains at a lower level, or even close to close. On the contrary, the average selling price of iPhone is always higher than that of the beggar. The second reason is that apple is good at providing new technology selling points to attract high-end consumption, such as the design of early iPhone4, the Siri, TouchID, 3DTouchID, double lens portrait mode, ID and so on in the later generations, which you may think are not a selling point but have a non general influence in the industry. It has promoted the sales of the new generation of iPhone and caused a large number of manufacturers to follow suit. Of course, according to Cook, this should be a reasonable price for the value of delivery, and it is to use market leading innovation in exchange for value. For example, TouchID, when iPhone5s is implemented, fingerprint sensor parts are more expensive, and other competitors are not able to compete in high-end machines, so the machine has a reason to sell higher prices. Since then there are twin lens modules, high-end 3D sensors, high-performance CPU and GPU. Apple passes the cost to consumers through leading high-quality components, and consumers are willing to pay for expensive innovation. Apple, while negotiating spare parts costs, tries to make every spare part to the lowest price, in order to earn higher profits, but these parts are not simply from the general solutions provided by the suppliers, most of them are specially customized and enhanced by apple, and apple is willing to put the high-end zero. The components are integrated together to provide a more excellent and temporary experience that only exists on iPhone. Another reason is that high-end mobile phones can not only come from functions and specifications. It can be said that the reason why consumers are attracted by high-end iPhone is largely due to consumers sense of iPhones self use experience. The apple iOS ecosystem has a long and stable application, service, performance, photo and security experience. The most balanced combination is also the reason why consumers are willing to buy iPhone at a high price. For most users, iPhone is the best mobile phone in all aspects of the comprehensive experience. On the contrary, some cheap machines may be good at one side, but on the other hand, it is very strong or relatively bad. Apple has long focused on creating the best high-end machine with comprehensive experience, so consumers are willing to pay the price and give profits to Apple at high price. Many domestic manufacturers are aware of this, and are now starting to try high price + high quality products instead of concentrating on small profits, because the difference in commodity in the low end market is very small and no help for profit growth. Another reason is the love of apple brand. Apple is not only smart in development, but also has the ability to make users feel satisfied, especially the basic functions that do not need help and self - mastery, and apple is also good at its brand marketing and fostering customer loyalty. Therefore, as many users have used iPhone users, the best option to transfer is to buy a new iPhone. A lot of iPhone consumers know that basically buying a new iPhone is a better product, because it may give yourself a more satisfactory experience. This is why so many people in daily life are willing to spend high prices on high-end brand products, in clothing, food, housing, and travel in various fields, believe that every consumer has its own brand, trust and long-term support. Finally, it may be the reason everyone agrees that iPhone8 is too conservative. IPhoneX is the pinnacle of Apples iPhone 10th anniversary. It has novel designs and functions. Although iPhone8 also provides the same processor, the machine is still a more conservative piece of work. The design language persists in the three generation, without the face of ID and OLED. IPhone8 may be a practical option for upgrading, but not Apples top product, and consumers prefer to choose iPhoneX that they dream of. IPhoneX is also a mobile phone. Its right to buy it! In any case, the price of a mobile phone now is still important to many consumers, but it may not be the most important thing. Because its easier to buy a cell phone now, and many favorable conditions enhance the purchasing power of consumers. Maybe it can be said that the mobile phone is the most consumer electronic product every day, just like most people have the same attitude to the car, buying a car is not a pressure, let alone a mobile phone, why not choose a more contented cell phone? Now buying a car can have a lot of ways to reduce the economic burden, the same is not the exception to buy the mobile phone, there are operators contract machine, apple official year of the new year, also third parties with vigorous installment free promotion, more shopping festival of the super price concessions and so on. Considering that iPhoneX is a mobile phone that can be used for two years or more, many consumers can also accept the way of low down payment with machine. In short, $999 is not unbelievably expensive for most consumers, and apple has proved that it has the ability to maintain the high-end market. So before a large number of experts, analysts and tech bloggers warned that iPhone prices were too high, perhaps the reverse could now be interpreted as: mobile vendors who have been dreaming of the high-end market like apples have failed in actual operation and have no way to sell their products at the same high price. In the war of price competition. Of course, in the same market, different products are needed to meet different customers needs. Welcome to Wei Feng Network Official WeChat: weiphone_2007 brings together the latest Apple trends and selects the hottest technology information. [article correction Share Source: Weifeng network editor: Guo Hao _NT5629