The world may seem crazy and mixed up but that’s only a mirage, a facade, what the powers that be want you to see and think. Actually, not much has changed in the 5,000 or so years of recorded human history.
Every year Apple introduces a new iPhone model, and every year early reviewers blush with how wonderful it is, and every year critics claim it won’t help Apple from being doomed. Again. How so?
Check out this headline for a product that is backordered until mid-December.
The iPhone X could be Apple’s worst nightmare come true
Over the past decade, Apple’s financial performance has become increasingly reliant on a single product: the iPhone. This is not news. These days, the iPhone typically comprises between 60% and 70% of revenue in any given quarter.
How is this a nightmare? Check out this bullet point.
iPhone is losing share as a driver of Apple’s revenue
One of those things is not the same. What writer Evan Niu fails to mention is that everything else in Apple’s product line makes a butt-load of money, too.
Since Apple starting releasing two models a year, the risk of a product launch flop increases
Why and how is that true? Do more products mean more chances for failure? Or, does it mean less opportunity for a single product to become a failure?
If the iPhone X launch next month is disappointing, it could hurt Apple’s stock.
Uh huh. And if a meteor falls onto every iPhone X customer, it could hurt. As of right now, iPhone X is backordered into mid-December, Apple’s stock is selling at an all-time high, early reviews of iPhone X indicate yet another smash hit with features not easily replicated by competitors, and I want one. What else is there to know?
Theoretically, diversifying the lineup reduces risk, but ultimately the disproportionate importance of the iPhone inevitably created a massive risk factor that investors have had to contemplate for years: What if an iPhone flops?
Apple seems to have mastered this whole risk-reward thing rather well, don’t you think?
The possibility of an iPhone flop hasn’t really been an issue thus far.
See what happens when reality sets in? What were we talking about?
Even when some headline features prove to be gimmicky novelties (like Siri initially or 3D Touch), Apple’s marketing department picks up the slack and still convinces consumers that they need it.
Just exactly what did Apple’s marketing department do that overcame customer resistance to Siri and 3D Touch?
Wait. I remember now. We were talking about Apple’s worst nightmare coming true, right? Apparently not.
There are two main ways that an iPhone could flop: The product itself could fail to impress and demand could falter, or Apple could fail to execute in meeting demand even if the product is strong. It’s this latter scenario that is currently unfolding before our eyes.
iPhone X seems to have impressed sufficiently that demand is strong. As to Apple failing to execute, note that was in unfolding before our collective eyes is successful manufacturing, increased sales, and the sound of cash registers ringing in the back of every Apple Store.
With daily reports detailing iPhone X production challenges, the all-important new flagship looks more and more like it will be a flop.
Yeah, about that. Reality seems to rear its ugly head with facts and there is absolutely nothing in the news that makes iPhone X look like a flop and whatever those so-called production challenges actually were are beginning to sound like secret tips from Samsung’s criminal executives.
The production and supply issues this year appear to be worse than they’ve ever been, and the supply chain logistics also sound more complicated than ever before due to how much technology Apple is packing into iPhone X. While demand outstripping supply is generally a good problem to have, and one that Apple is all too familiar with (and it’s still better than the inverse scenario), that demand is only as good as Apple’s ability to meet it in a timely fashion.
So, the nightmare seems to be this: Supply outstrips demand. And, demand outstrips supply. No matter which one, iPhone X won’t save Apple.