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Dialogue with Apple's Shenzhen channel: iPhone price cuts have not improved sales

via:博客园     time:2019/3/9 16:33:17     readed:158


Text / Sanyan Finance

“The iPhone has doubled its price cuts. This time, iPhone XS and iPhone XS Max joined this round of price cuts, with the highest derating rate exceeding 2,000 yuan. ”

This is the most intuitive description of the price cut by the media in March.

Since the beginning of this year, the iPhone has undergone three rounds of price cuts, and each price cut is accompanied by poor sales.

In this regard, Sanyan Finance interviewed the relevant people of Shenzhen Apple channel dealers, revealing the motives and actual effects of Apple's price cuts.

Three rounds of price cuts in a short period of time, Apple & ldquo; million machine & rdquo; price cuts

On January 3, Apple CEO issued an open letter to reduce its revenue forecast for the first quarter of FY 2019 from $89 billion to $91 billion to $84 billion. The reason is due to the economic slowdown in the Chinese market and the decline in consumer demand for upgraded iPhones.

Soon after, some of the iPhone products of Shenzhen channel began to cut prices. Among them, the new iPhone XR has the largest price cut, and the channel price has dropped by 450 yuan.

In terms of e-commerce platform, JD.com lowered the price of iPhone 8 and iPhone 8 Plus; Tmall Mobile announced that the new iPhone will drop 1,500 yuan; Suning Tesco will lower the price of iPhone XR and iPhone 8/8P, respectively. The official website sells for 1200 yuan.

On January 30, the first quarter of 2019 (the fourth quarter of 2018) reported that revenue for the quarter was $84.3 billion, down 5% from the same period last year. CEO Cook said that Apple is rethinking how to price the iPhone outside the dollar, as the dollar price has risen sharply, making the phone more expensive as the dollar strengthens.

Then Apple began the second round of price cuts. On February 1st, Suning mobile phone official propaganda "first price cuts", 512G iPhone XS Max compared with Apple's official website price, the price cut to 1700 yuan.

On March 5th, the third round of price cuts broke out, and the major e-commerce platforms all joined the price reduction camp.

It is reported that the Tmall platform iPhone XS, iPhone XS Max joined the price reduction ranks, the highest price is 2,000 yuan cheaper than the official website.

Suning Tesco and Suning Tesco Tmall flagship store down the price of iPhone XS products, iPhone XS 256G version to the hand price of 8888 yuan, compared to the previous Apple official website 10099 yuan price is 1211 yuan cheaper; iPhone XS Max 256G version to the hand price of 9388 yuan, Before Apple's official website was cheaper than 1611 yuan.

Jingdong Mall iPhone XS Max official website price down straight 1700 yuan, iPhone XS Max grab tickets as low as 7999 yuan, iPhone XS grab coupons 7399 yuan from the limited time special.

On March 6th, the company also announced a significant reduction in the price of the new iPhone. The price of the iPhone XS Max 256G coupon was 8,699 yuan, which was 2,300 yuan lower than Apple's official website price.

For the reason why Apple frequently cuts prices, the industry generally believes that the iPhone is not selling well in China, and the pressure from slow sales is relatively high.

According to data released by research firm Strategy Analytics, in 2018, the iPhone entered a recession in the Chinese market, with a total shipment of 34.2 million units, a 22% decrease from 2017's 36.7 million units. Among them, in the fourth quarter of 2018, iPhone shipments in China were 10.9 million units, down from 14 million units in the same period of last year, down 22% year-on-year. This is the worst quarter for Apple in China since the beginning of 2017. In Q19, in 2019, Apple's revenue in Greater China was only US$13.17 billion, a drop of nearly 27% year-on-year.

Some industry insiders pointed out that the rise of Chinese local brands and the approach of the 5G era, Apple is under tremendous pressure. Its high price has gradually lost its competitiveness in the gradually mature domestic machine.

Channel dealers: The impact on retail sales is dull, and the price reduction of 2,000 yuan is a publicity stunt

From the perspective of Apple channel merchants in Shenzhen, three words of financial and economics are behind the details of Apple's price cuts.

First, is the price reduction of Apple's official behavior or retailer's autonomous behavior?

Channels: "About the price cuts, I remember that Apple said that it was not related to them, but how does this matter? XR is said to have subsidized 100 US dollars, the wave of price cuts before the year is just right. The channel price has also dropped by six or seven hundred dollars, which is in line with the rumor of $100. "

“Recently, XS/Max has also undergone an adjustment of almost $100. It will be relatively stable after a few days of adjustment. XR has no adjustment plan at present, and it is estimated that it will stabilize for a while. ”

As you can see from the above, most of the media reported that when the iPhone was cut, the price of the comparison was the price of Apple's official website, and there was a gimmick in the promotion.

The channel pointed out that in fact, the price of the e-commerce platform relative to the platform has dropped by only 600 or 700 yuan, which is just 100 dollars. The so-called "price cut 2000" is just a gimmick.

It is reported that Apple will launch the product in the official store Apple Store after the release of the new product, and will also give the official reference retail, which is the official website price of Apple. Since then Apple will not change the official website price, the retailer will adjust according to the market price.

Second, the reasons for Apple's price cuts and its impact on sales.

Channel dealers: “The channel providers are relatively more in contact with the retail side. This year's sales situation is not very satisfactory. The cargo is also relatively conservative, so the slow sales can't be discussed. It is necessary to ask the provincial generation.

& ldquo; frequent price cuts I think the biggest reason is the unsatisfactory sales situation, in fact, there are also price cuts every year, such as the 8P of 5,518 in 17 years, the price is even more expensive in a year. This year, it is only a little more relative. The post-marketing adjustments, the January XR adjustment, and the March XS/Max adjustment are relatively frequent. ”

“For me, the price adjustment of XR has significantly improved sales volume year ago, and the current sales situation is relatively flat. XS/Max cut the price this time, and it feels very flat after the price cut. ”

The channel pointed out that he believes that frequent price cuts are affected by sales, but he also pointed out that the recent round of price cuts has had a modest impact on its current sales.

However, on some e-commerce platforms, the overall sales increase of the iPhone is more obvious. This may be related to the channel's sales channel, mainly retailers.

According to media reports, since the iPhone started a new round of price cuts at 5 pm on March 5, as of 12 o'clock on March 7th, the overall sales of iPhone in Tmall increased by 150%. Among them, iPhone XS Max sold the best, an increase of 230%.

For the sales of single products, the channel estimates that “XR is the highest sales volume, followed by Max, and XS is relatively poor. & rdquo; This is consistent with the sales data of each e-commerce platform.

Third, what problems do Apple and channel companies face?

Channel dealers: “For terminal retail, it may be a good one or two hundred, and there are not a few dozens of dollars that don’t make money to do business. It is okay to do wholesale directly to Apple. In theory, there will be subsidies, but the wholesale of the goods can only be borne by themselves. For example, a friend of mine, Max 256, which came to more than ten days ago, has pressed about 300 units and probably lost more than ten. 200,000. “

“The biggest impact on Apple should be Huawei, and the experience of Android is gradually improving. Apple’s signal problems have also caused many people headaches. Too high a price also raises the threshold for purchase. As a consumer, I don't think Apple's current high selling price is reasonable. As a merchant, we have more pressure on goods and lower profit margins. ”

Here, he pointed out a more typical problem: due to the high price of Apple, it puts tremendous pressure on retailers and consumers, and the merchants have to bear the risk of product backlog under the pressure of huge loans.

Apple has indeed increased its fierce competition from domestic mobile phones in recent years, which has also challenged Apple's pricing strategy. Coupled with the positive layout of domestic manufacturers in new technologies such as full screen, folding screen and 5G, Apple's influence and sales are being cut.

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