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apple Forbes states this is the End of Apple!
G. David Felt posted a topic in Electronics & Technology
Whether you agree or disagree, Forbes is saying that the data is showing an end to Apple as you know it. With Apples cheapest phone costing $1,149 today compared to when it debuted in 2007, the price you paid has soared over 700% in 12 years. 2002 was the last time Apple slashed forecasted earnings and the stock has been punished since then falling 35% since it's peak in November 2018. This erased $446 Billion in Shareholder value, the biggest wipe-out of wealth in a single stock ever since stock trading began. Per Forbes, since 2001 Apple has had steady revenue growth and by this measure the business seems perfectly healthy. Looking under the hood is a different story all together. iPhone sales peaked in 2015 and to compare the completed 2018 year to 2015, Apple sold 14 million phones fewer. Key pieces to take into account from this story is as follows: 2010 iPhone 4 cost $199 2014 iPhone 6 cost $299 2019 iPhone cheapest model cost $1,149 a 500% price hike from 8 years ago. Technology is supposed to be all about getting cheaper, yet Apple has done the opposite, reduced sales, but increased prices. Example of this is the TV business where years ago it cost thousands and thousands of dollars for a large flat-screen high definition TV and today you can get a 55 inch version from your local retailers for around $500. Cell phone prices have come down roughly 92% in contrast to Apples 500% increase. In 1984 Motorola sold their first cell phone for $4,000 and now the average price of a smartphone is $320 according to IDC research firm. As Forbes states and I agree, it is amazing Apple has pulled this off and yet the future is not looking bright for them. Life-cycle disruption is coming from both China startups and Korea especially Samsung. 12 years ago research showed that only 120 million people had cell phones and today over 5 billion have cell phones. An exploding growth market is reaching maturity and getting people to fork over $1,000 or even $1,500 dollars ever couple years for a new phone when equal quality products from other vendors at a fraction of the price is going to be hard to do. Apple has responded by announcing they would stop disclosing iPhone unit sales and they are going to no longer report average transaction price. Share holders deserve to know the facts of what is being shipped and prices per unit. iPhone generates 2/3 rds of Apples overall Sales. Let that sink in that a publicly traded company is no longer telling it's investors how many phones it sells. With a stagnant product line and no real growth, Apples business is going no where under current leadership. If Apple was to cut prices to 2016 levels, it would have to sell 41 million additional phones to match 2018 revenue. In 2007 Nokia was the Cell Phone King with over a Billion cell phones sold that year and the question was Can Anyone Catch the Cell Phone King? Nokia is only now attempting to start over from the ashes of the original company. Is Apple heading in that same direction? https://www.forbes.com/sites/stephenmcbride1/2019/01/21/the-end-of-apple/#523ee1896dc0
