Linked by Thom Holwerda on Sat 5th Apr 2014 13:35 UTC
Apple

Internal Apple documents from last April shown in court today paint the picture that the company was scrambling to identify and determine ways to compete with devices running Android, as well as keep sales of the iPhone from petering out amid growing competition.

Pages from a 2014 planning document last April, shown during a cross-examination of Apple's marketing chief Phil Schiller, noted that smartphone growth rates were declining, something that could impact iPhone sales. Worse yet, the document said, was growing consumer interest for less expensive, larger-screened smartphones, with a headline on the page reading "consumers want what we don't have."

Apple is doing just fine in the US. In large parts of Europe and the rest of the world - not so much. I don't mean to say they are in trouble or will die - so let's get that strawman out of the way straight-up - but Apple's leadership (unlike some others) is smart enough to know that what matters is not last year, this year, or even next year - what matters is five years from now. Once people get accustomed to relatively cheap, non-iOS devices with large screens, they won't be going back to a phone with a tiny (by comparison) display that costs twice as much.

So yes, those larger-screen iPhones are coming.

Thread beginning with comment 586447
To view parent comment, click here.
To read all comments associated with this story, please click here.
jphamlore
Member since:
2011-02-15

Well Apple has made it abundantly clear they simply aren't going to compete at a certain price point, and if that means losing a huge percentage of even populous and important countries, so be it. And that has nothing to do with the display size of Apple's phones.

Prices for phones whose capacities would be quite formidable a few years ago are headed for way under $100 USD.

http://www.businessinsider.com/its-a-race-to-the-bottom-2014-2

And Apple ain't going there either.

Edited 2014-04-06 05:59 UTC

Reply Parent Score: 2

unclefester Member since:
2007-01-13

And Apple ain't going there either.


Well they'll probably go broke (again) unless they create a new niche for expensive products. Apple, like the Bourbon royalty, remembered everything and learned nothing.

Reply Parent Score: 2

mkone Member since:
2006-03-14

"And Apple ain't going there either.


Well they'll probably go broke (again) unless they create a new niche for expensive products. Apple, like the Bourbon royalty, remembered everything and learned nothing.
"

The last I checked, they had something like $160bn in cash (although with close to $20bn in debt).

They are not going broke anytime soon. Dell, Samsung etc are more likely go broke before Apple. Apple has very few product lines and runs a very lean operation that makes them quite resilient. And they have a few dollars to spare to get them through the lean times.

Apple's growth rate will slow, and they will settle into a "small" but profitable niche while Android makers begin the inevitable run to the bottom that killed the PC industry. There will eventually be three or four companies left standing, all making small profits while Apple makes larger profits off a small market share.

Basically, the smartphone market will go the same way as the PC market.

Reply Parent Score: 2

gilboa Member since:
2005-07-06

Well Apple has made it abundantly clear they simply aren't going to compete at a certain price point, and if that means losing a huge percentage of even populous and important countries, so be it. And that has nothing to do with the display size of Apple's phones.

Prices for phones whose capacities would be quite formidable a few years ago are headed for way under $100 USD.

http://www.businessinsider.com/its-a-race-to-the-bottom-2014-2

And Apple ain't going there either.


Given the state of the U.S. and European economy, I doubt that betting the farm on people throwing 1000$ every two years to upgrade their phone "just-because" is a sensible long term plan.
Lets see if they stick to their guns if/when their market share drops to 10%. *

- Gilboa
* Keep in mind that we are currently in the booming-market phase with two digit yoy market growth; once the mobile market will reach some type of equilibrium you'll see the ASP declining faster than a falling brick.

Edited 2014-04-06 12:53 UTC

Reply Parent Score: 3