Apple Cuts Production For Next Gen iPhones
Apple recently notified its suppliers to cut production on equipment needed for the next generation of iPhones. Is Apple's iPhone losing its dominance in the smart phone market? We don't think so. We think Apple took two lessons away from the iPhone X's moderate success. One, the market isn't ready for $1,000 smart phones. Two, a large part of the market is over the yearly smart phone upgrade.
As a luxury brand we believe Apple will continue to keep the $1,000 plus price tag on its flagship phones. There will always be a pocket of people that will upgrade to the newest and best phone available, but we believe the excitement of a yearly phone upgrade has worn off.