Earlier month, Apple had to finally make the somewhat uncomfortable announcement that demand for their products was significantly lower than expected. This was particularly so for their iPhones. Since then, the company has largely cited two reasons for this downturn. Firstly, they attempted to suggest that it was due to their ‘inexpensive’ battery replacement policy. In other words, people were keeping their phones longer. Another factor they cited, however, was a significant drop in demand from the Chinese market.
Well, it seems that based on this announcement, Chinese retailers are responding accordingly. In a report via TheStar, a number of significant retailers in the country have begun slashing the prices of Apple iPhones.
In the report, it is suggested that many current models of the iPhone line are being given huge discounts. Even as much as $120. I suppose that the logic behind this is that with falling demand, no retailer is going to want to be left with thousands of phones in their warehouse that they can’t sell. Particularly as/when Apple decides to release their next model.
I have often been critical of Apple over the last couple of years. Specifically, I believe that the company has forgotten how to be innovative. As volatile a person as Steve Jobs was, he always demanded new, fresh and exciting products from his workers and I think the company desperately needs to try and recapture that ethos.
I mean, out of the last 4 iPhone models, what was new? I mean really new? As such, the downturn in demand (along with the growth of many less expensive competitors) is hardly surprising when you think about it.
What do you think? – Let us know in the comments!
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