Apple was wrong to launch three iPhones at a time

Apple was wrong to launch three iPhones at a time

Apple’s stock fell last week as a result of one of the worst news for the company: the poor sales of the new iPhone. According to Consumer Intelligence Research, iPhone 8 and 8 Plus sales represented only 16% of total iPhones sales in the third quarter. It has been a significant drop compared to the 43% of sales that achieved the iPhone 7 and 7 Plus in the same quarter last year.

Verizon, AT & T and T-Mobile also have bad news: they have reported that customers are slow to switch to the iPhone 8 or 8 Plus so far this quarter. AT & T revealed that only 3.9% of customers have switched to iPhone 8 or 8 Plus, compared to 5.1% last year when Apple launched the iPhone 7 and 7 Plus.

The executive director of the giant of the Canadian communication, Rogers Communication, even came to describe as ” anemic ” the interest in the iPhone 8 and 8 Plus.

What was wrong? Apple announced the iPhone X at the same time that it presented the iPhone 8 and 8 Plus.

Apple cannibalized his new phone with another more eye-catching and expensive design. According to many analysts, the fact of offering several options at the same time tends to confuse consumers.

Apple followers are accustomed to brand new phone every year and, starting with iPhone 6 in 2014, they also have a Plus model at their disposal. However, this year Apple suddenly offered them three phones.

“An epidemic of FOMO”

When  Apple unveiled the iPhone X in September, its CEO Tim Cook said the iPhone X was “the biggest leap from the original iPhone” and that the model “would mark the way of the iPhone in the next decade.”

“If it’s really like that, why would you want to have the iPhone 8?” Asks Ramón Llamas of IDC Research. Apple’s own hyperbole on the stage devalued the other two phones it had just introduced before the iPhone X. Llamas says the company “conveyed the idea that the iPhone 8 is good enough if you do not want all the innovations and fresh ideas. If you do not want to be part of all that, it’s good enough. However, within the United States we have an epidemic of FOMO, the fear of digital exclusion. No one wants to miss the best. “

In fact, Verizon CFO Matt Ellis said last week, referring to third-quarter earnings, which he expects to increase in the next three months, as people opt for the iPhone X, which will come out for sale on November 3. “When Christmas approaches and the new devices go out to the market, we believe that demand will increase.”

The iPhone 8 and 8 Plus discounts are expanding throughout China due to low demand. Forbes called the iPhone 8 “a wildcard that Apple launched because it could not produce the iPhone X in large quantities fast enough.” In another article, Forbes called the launch of three new phones at once as a “failed bet”. For its part, the Wall Street Journal believes that the iPhone 8 “is not what people are looking for.”

Still, IDC does not expect the iPhone 8 to be a total sales failure. When they are ready to update, many people will believe that the following model is good enough, compared to the “more developed” option that costs $ 999.

“Apple knows better than any other company the stratification of market segments,” said Llamas. “So, how many people want a similar model and how many more advanced designs? Normally there is usually demand in both directions. I think the iPhone X will eclipse the 8 models in popularity and units, but for many the 8 will be good enough. On the other hand, those who want news, should opt for the iPhone X “.