قالب وردپرس درنا توس
Home / Apple / Apple and Samsung phone sales are down and $ 1000 + prices are one reason – BGR

Apple and Samsung phone sales are down and $ 1000 + prices are one reason – BGR



There was at least one common theme reflected in the revenue that the handset archives Apple and Samsung both reported this week – a decline in revenue attributable to both companies' expensive smartphones.

Apple, for its part, no longer breaks out device revenue but posted a 12% drop in iPhone sales Tuesday compared to the same quarter in 2018. iPhone maker generated $ 25.99 billion in smartphone revenue over the course of of the last fiscal quarter, down from just over $ 29 billion a year ago. At Samsung, the story was similar.

Samsung's revenue announcement reflected an increase in smartphone shipments over the last quarter, compared to the same period in 201

8. But the company said the increase stemmed from the demand for less expensive models such as the Galaxy A series. Unfortunately, "sales of flagship models fell QoQ on weak sales momentum for the Galaxy S10 and stagnant demand for premium products," the company noted.

One conclusion that can be drawn from all this is that consumers are staging a silent rebellion against phones with $ 1,000 + price tags.

CNBC noted Wednesday that, for example, many people hold their phones for much longer than they used to. Because of the price, but also because phones from virtually all major manufacturers are so much better than they used to be – and they stay that way for much longer.

The deeper you go, you begin to find many interconnected trends that are linked to and affecting each other. According to Bernstein analyst Toni Sacconaghi, iPhone owners are now upgrading their devices once every four years. This serves to postpone an increasingly expensive upgrade, which is also easier to do when the phones are as solid as ever. If consumers only see incremental improvements in subsequent model generations that will only make them stay even tighter for this longer time horizon.

It is also getting harder and harder for Apple, Samsung and many other manufacturers to really wow consumers on the basis of the cameras when they are already so amazing. "Apple launched its iPhone XR in September last year, a phone that stands out for both camera quality and battery life, but starts at $ 749," reports the CNBC . "The more expensive iPhone XS ($ 999) and XS Max ($ 1,099) have more colorful and lighter displays and even better cameras, but most consumers don't want to spend as much to get there. Meanwhile, Apple is also selling the iPhone 7 for Similarly, Samsung's A Series phones generate interest from consumers who won't spend nearly $ 1,000 on a Galaxy S10 +.

Meanwhile, both Apple and Samsung are pushing. The latter will unveil Galaxy Note 10 next week, a much-awaited handset series that has legions of fans and will represent an attempt by Samsung to keep up with Apple, more specifically, to keep up with the company ahead of the latter introduction of the latest iPhones , which will be announced in September.

Speaking of Apple, the maturation of the iPhone is the reason why the company is so successfully squeezing in new revenue categories such as subscriptions. at all worried about its business, given that Apple's stock price at this time on Wednesday rose on rails to make it a trillion dollar company again.

Image Source: Photo by JIM LO SCALZO / EPA-EFE / Shutterstock


Source link