Price reduction It is difficult to save the "double decline" of revenue and profits, and Apple is helpless and faces market adversity
Apple is the most profitable company in the world, and it has always remained in the first place in recent years, and its revenue and profits have also increased year by year, and there is rarely a year-on-year decline.
From fiscal 2018 to fiscal 2022, Apple's revenue and profit increased by more than 40%. Specifically, Apple's revenue and profit in fiscal year 2018 were $265.8 billion and $59.5 billion, respectively, and in fiscal year 2022, revenue grew to $394.3 billion, and profits approached $100 billion, reaching $99.8 billion.
However, good luck does not always favor Apple, and at the end of 2022, many companies have encountered operational difficulties, and Apple, which has always remained unchanged, has also suffered a decline in revenue and profit, and its financial report is not as good as market expectations.
According to Apple's previously released report for the first quarter of fiscal year 2023, the company achieved net revenue of 1171 for the period from September 25, 2022 to December 31, 2022US$5.4 billion, down 5% from the same period last yearObtained a net profit of 299US$9.8 billion, down 13% year-on-year.
This achievement is the first year-on-year decline in Apple's revenue in nearly four years, and it also reached the largest quarterly decline since September 2016, and is lower than the market estimate of $121.2 billion.
However, in the face of this decline, Apple does not want to compromise, but through a series of means to stimulate the consumer market, attracting more consumers to replace Apple devices, mainly taking two decisions.
The first is the price reduction strategy, although there are times when the price of Apple's mobile phones has been reduced in the past, but there has never been such a big discount as today, the latest price of the e-commerce channel speaks for itself, and the decline of the entire iPhone14 series of products has exceeded 1000 yuan.
In the past, Apple generally only reduced the price of standard models, but now iPhone14ProMax has also dropped sharply, and the subsidy price of e-commerce channels has reached about 7600 yuan, which is about 1400 yuan lower than the initial price.
Moreover, the price reduction of the iPhone14 series has become a means of stimulating consumption through all channels, whether it is Pinduoduo, JD.com or **, it is the lowest price, the purpose is to be able to sell more products and ensure revenue in the first half of 2023.
In order to attract more consumers to buy the iphone14 series, Apple has also done enough homework on the design of the mobile phone, changing the shell for the iphone14 14puls.
*The iPhone 14 is a yellow version, which is also the fourth model launched by Apple to have a yellow version after the iPhone 5C, iPhone XR, and iPhone 11, and this yellow version will be sold as a new colorway, which may encourage some young people to buy it.
So, from price cuts to shell changes, can Apple drive a wave of sales boom?I think there's a lot of opportunity.
With the gradual recovery of the market, more and more consumers will buy mobile phones, and Apple's sharp price reduction will inevitably stimulate a large number of consumers to buy.
There is another reason, that is, in the fourth quarter of 2022, Apple was affected by the epidemic for a period of time, and Foxconn's storage control affected Apple's revenue to a certain extent.
However, in the long run, although the price reduction of Apple's mobile phones may stimulate consumers to buy in a short period of time, but"Price for volume"This will eventually damage the Apple brand, and in the long run, no consumer will be willing to buy an expensive iPhone.
Therefore, the current dilemma that Apple is facing is very obvious, it cannot achieve a good balance between sales and **, and can only choose one or the other. So, would you consider buying the iPhone 14 series with a significant price cut?