The generation shift didn’t happen correctly, troubled times are ahead. Apple never gets scared, but an exception was made this time. Declines come at various times; analysts don’t pay too much attention to that. When a new phone comes, figures are rather healthy. There is a “peak” position and it determines everything. KGI securities mentioned that the graph touched this position quickly; Apple should be ready for the downward movement.
November is not going god for them, the poor demand made everyone worried. TSMC reduced production by 70-80%, this was natural. Diversification is Apple’s only way out, they must capitalize on other business opportunities.
They sent products to different vendors; they were unable to clear the stocks. Overseas suppliers are happy with the present volume, they notified Apple. No discounts were offered, as Apple tried to maximize their profit. Cook was wrong about the consumer mindset, he tracked the wrong metrics. It is not about paying more, product quality triumphs everything. Big investors have lost faith now, nothing can revive them. Some engineers thought about big improvements, they were never finalized. Branding does only 40% of the job, Cook should understand it. From Didi to Apple Music, Cooks wants money from everywhere. Users hate inconvenience, they never connected with Apple’s product philosophy.
Smaller phones were favored by Apple’s customers, but iPhone 7 was pathetic. People took the product for testing; they formed their opinion very soon. KGI pointed out some basic flaws with this device, Apple can’t ignore them. They never increased the demand; they just produced the same product again and again. The customer loves surprises, Apple should amaze them. Online orders were pretty ordinary too, it slowed demand massively. China is giving them nightmares, the brutal competition is too much to handle. Cook personally went to China, he understood the market. Their next target is Japan, it can produce good results.
