Typically, the next iPhone flies off the shelves with long lines around the corner. Not this year. Apple has taken a new marketing approach this year that is creating lots of confusion. Investors and customers simply don’t know what to expect. Reports say this time around iPhone 8 sales are tepid. Does that mean iPhone has lost its sizzle, or are customers just waiting for iPhone X?
Some customers are waiting for the iPhone X, but others are simply not sure what to do. They have never been asked to make a choice before. In fact, they were never given a choice before.
The good news is iPhone X should be more profitable for Apple. So, it would be better for Apple to sell more iPhone X than iPhone 8. Is that what is happening here? I hope so. When a company has this kind of tepid rollout, it is generally bad news. In Apples case, this may simply mean their split rollout is causing problems.
It would have been better for a simultaneous rollout, rather than giving the market six weeks to wonder about Apples future. Why didn’t they understand this marketplace reality?
The choice: Evolutionary iPhone 8 vs. revolutionary iPhone X
The choice customers have is simple. It’s a matter of evolutionary or revolutionary. The iPhone 8 is evolutionary. It is better than previous iPhone devices, but looks and works the same. iPhone X is revolutionary. It does more and does it differently. So, the choice is simple, improvement or revolution.
I would guess, since early iPhone purchasers are generally on the cutting edge and always wanting what’s new, they would wait for the iPhone X. Then over the course of the next year, as more users upgrade, the numbers may even out.
So, based on the tepid iPhone 8 sales so far, it seems like the marketplace is waiting for the iPhone X. We won’t know for sure until it is in the marketplace. So, stay tuned.
There is both a good and bad side to new technology. On one hand, it’s cutting edge. On the other hand, it’s often confusing and filled with bugs that need to be worked out over time. That’s why I say the leaders take the arrows and end up with the bloody noses, but they ride the newest ride in the park before anyone else.
However, it sure gives an uneasy feeling not to see the long lines wrapped around the block waiting for the Apple store to open so they can get their hands on the new iPhone. The next step to see is whether the lines will be there for the iPhone X in a few weeks. No one really knows today what will happen tomorrow.
Bottom line on iPhone 8 and iPhone X sales
So, for whatever reason, customers buying more phones online and the revolutionary device not on sale for six more weeks, iPhone 8 sales were disappointing for the first time. This marketing approach was wrong. Then again, Apple has screwed up in the past and they are still the giant.
Bottom line, I don’t think Apple has seen its best days yet. They are still loved by the marketplace. Their customers have a love affair with the iPhone. With that said, while marketing mistakes may happen and new ways to buy may take over, I think Apple will still see a profitable year with these two new phones when all the dust settles.
