Why is apple trying to curry favor with the market less and less?

Why is apple trying to curry favor with the market less and less?

Author: Chutian (Financial commentator)

Apple unveiled three iPhones and a fourth-generation Apple Watch in California at 1 a.m. Beijing time on September 13. Almost all of the predictions for the new iPhone are: the three are the iPhone XS, the iPhone XS Max, and the iPhone XR.

Among them, the iPhone XS and the iPhone XS Max can be understood as the upgraded version of the iPhone X, the 512GB version of the iPhone XS Max, priced at 12,799 yuan in the Chinese market, which is also the most expensive iPhone in history. IPhone XR is a relatively cheap model, with a minimum price of 6499 yuan.

When melon eaters become "predictors" with an accuracy of close to 100%, it means that apples bring less and less sophistication to the market and consumers. The release of the three iPhones, people feel that in addition to the size continues to increase, color has increased and other "external" features, in the most essential core performance is still lacking in highlights.

For example, the A12 bionic chip, which Apple calls the world's first 7-nanometer chip, offers excellent performance and improves camera performance. But what is the actual effect, I am afraid, it is also necessary for consumers to get a real experience after they get it.

In general, Apple's new product is trying to please the market. Apple's iPhone XR, for example, is a relatively inexpensive model with a minimum price of 6,499 yuan to meet the "kidney-free" demand of the working class. IPhone XS and iPhone XS Max realize dual card dual standby, which seems to be especially suitable for Chinese users.

In addition, Apple Watch 4 has a larger screen, a measurable electrocardiogram, and an Apple Watch SEIRES 4 dial can also be personalized, but none of these features are immediately visible.

After the conference, Apple's share price fell 1.24% on NASDAQ. What's interesting is that Apple's share price has dropped, but the industry is optimistic about its future sales.

As you can see on Apple's website, the iPhone x is off the shelves, with four currently on sale, and three of the latest releases, seven iphnes will be on sale in the future. Sun Yanchao, Dean of the First Mobile Phone Industry Research Institute, thinks this is Apple's "sea-of-the-plane tactics" and predicts that 2018 will be Apple's best-selling year.

This is actually not contradictory. After Jobs's death, Cook took over. He has always been regarded as a skilled businessman, but not a technological innovist. At the conference, Cook announced that iOS has reached 2 billion devices worldwide. From this data dimension, apple is worthy of being a trillion dollar giant.

But Apple's innovation in technology and products seems to have stalled. After all, Apple in the Jobs era has never been a pure computer and mobile phone company, but has been seen as a model of deep integration of technological innovation and applied aesthetics, constantly launching revolutionary innovations that have a significant impact on the industry and society. Today's Apple, on the other hand, relies heavily on the more expensive, more and more model-driven marketing model.

What is more unfavorable to apple is the overall environment of the smart phone industry. Recently, the China Academy of Information and Communications released the "August 2018 domestic mobile phone market operation analysis report" said that from 2018, due to the extension of mobile phone replacement time, product homogeneity and other factors, the global smartphone market fell into a sluggish state, the overall growth is weak.

Apple, the leader in smartphone technology innovation, last year unveiled three phones with unsatisfactory sales. Apple also reported 7.7316 million iPhones sold in the first quarter of 2018, down 1% from 78.29 million in the same period last year, and overall iPhone revenue rose 13% year-on-year despite lower-than-expected sales. The main reason lies in its contribution to price increase.

Nevertheless, it's not a long-term solution for Apple to keep raising prices and failing to innovate in technology and applications. The response of the capital market to its latest release is rather cold. It is also estimated that its growth is worried. Even the Chinese consumers who had previously been the hottest at Apple were skeptical of the news.

As the economy changes and mobile phone makers like Huawei and millet catch up, will Chinese consumers still be willing to spend a lot of money chasing Apple's new phones? Will Cook's business logic continue if the Chinese market, regarded as one of Apple's most important markets, falls?

Why is Apple trying to please the market getting less and less popular? Because increasingly critical consumers need Apple's innovative technology, killer apps, rather than the overused models, colors and other sales routines. Otherwise, the faithful fruit powder will sooner or later not be willing to pay for its "brand premium".

Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens