Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The End of Apple Has Begun

Companies / Apple Dec 06, 2019 - 05:53 PM GMT

By: Stephen_McBride

Companies

When Apple CEO Tim Cook took the stage this September, nobody expected the shocking news he was about to deliver...

He unveiled the new iPhone 11—the most advanced phone Apple has ever made.

But it was not the triple-lens camera and lustrous finishes that stole the show. It was the phone’s price tag.

For the first time ever, Apple cut its iPhone price.

As I’ll explain, Apple made this move out of desperation… and it may well spell the beginning of the end of Apple’s run as a dominant company.

Apple is not a gambling company, but have worked a lot with gambling companies, read more and find some of them on FS Monster's casino list. But first, let's look at what Apple really is - a phone company.



Apple Is a Phone Company

Let’s get one thing straight…

Apple is not a computer company anymore.

Apple is a phone company.

Since it introduced the iPhone in 2007, Apple has sold 2.2 billion phones raking in over a trillion dollars in sales—more than any other phone maker in history. Meanwhile, Apple stock shot up over 2,037%... and became the world’s largest publicly traded company.



iPhone Is Apple’s Golden Goose

Apple has earned a whopping $1.99 trillion since 2007. The thing is, more than half of it came from iPhone sales.

iPhone is not only Apple’s best-selling product by far. It’s also the company’s most profitable product.

For every dollar an iPhone brings into the company, Apple earns $0.60–0.74, according to PhoneArena. Compare that to the MacBook Air… Apple’s most profitable notebook...which earns a mere $0.29 on the dollar.

If it weren’t for the iPhone, Apple wouldn’t be where it is today. Without the iPhone, Apple would be a mediocre computer company like Dell at best.

iPhone Sales Stalled Out

For years, iPhone revenues have sprinted higher at an exponential pace.

But in 2015, Apple reached an inflection point. The growth of its iPhone sales has died out, as you can see below…



Last year, Apple sold 14 million fewer phones than it did three years ago.

That’s not unusual, though.

When Apple unveiled the first iPhone, the smartphone was groundbreaking technology. The typical lifecycle of a groundbreaking technology looks like this:

Sales skyrocket out of the gate… then flatten out as the market matures… and finally take an inevitable downturn.

Twelve years ago, only 120 million people had a cell phone. Today, over five billion people own a smartphone, according to IDC.

Apple Found a Way to Extend the iPhone Lifecycle

As I wrote earlier, Apple has found a masterful way to extend iPhone’s prime time. The company raised iPhone prices to offset slowing sales and keep its revenue figures growing.

Think about it… In 2010, you could buy a brand-new iPhone 4 for $599.

In 2017, you would have had to fork over $849 for the iPhone 8 and $1,149 for the iPhone X… Apple’s most expensive phone.

The price hikes kept Apple’s growth engine alive… and for this reason, its revenues have gone on marching higher since 2011.

But there was also another reason Apple was forced to hike its phone prices…

iPhones Are More Expensive for Apple, Too

Take a close look at the chart below. It shows how much it costs for Apple to make an iPhone...



With the exception of a few years, the cost of making an iPhone has been climbing higher since 2007.

The first iPhone cost Apple just above $200 to make. Meanwhile, iPhone XS (the latest iPhone Apple reported on) costs double that.

Apple has always set records with its phone prices. But as you can see, it did it for a reason. It had to offset the ever-growing costs.

But as I warned my readers before, it was just a matter of time before Apple had to pull back with its pricing.

It didn’t take long….

iPhone Has a New Feature: Lower Prices

Last September, Apple unveiled iPhone XR, a less advanced and more affordable version of the iPhone X.

It cost $749, a 35% drop from the iPhone X’s $1,145 price tag.

But in truth, it was almost the same iPhone X, only disguised as a budget phone. It was basically an excuse for Apple to release a cheaper phone to get its sales figures back on track.

This year, Apple went a step further. It slashed the price of its full-fledged iPhone. The newly released iPhone 11 started at $699, a price point not seen since 2017.

Apple did it as a last resort to spur lackluster demand. But in doing so, it has signaled the beginning of the end of its lucrative iPhone business.

The End of Apple

See what’s happening?

Not only is Apple selling fewer iPhones, it’s now earning much less on each one.

Recent financial reports show that iPhone revenues… which have been Apple’s lifeblood… are starting to sink.

Last quarter, Apple earned 10% less from iPhones than it did during the same period last year. That’s a loss of about $20 billion!

Apple has never earned so little from iPhones… and all this will start showing up in Apple’s financial reports very soon.

Let me make it clear: half of Apple’s business is going off the rails, and there’s no turning back.

While Apple admits the demise of iPhone and is looking into new business directions, these things don’t happen overnight. Meanwhile, Apple’s money-making machine is grinding to a halt.

As I warned you earlier this year, Apple is a ticking time bomb… and for this reason, I’d recommend staying away from this stock.

Written with the assistance of Dainius Runkevičius.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"
Get my latest report where I reveal my three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Stephen McBride

http://www.riskhedge.com

© 2019 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in