Weak Initial Sales for the iPhone 8 & Their Consequences
Apple has reported low sales as the new iPhone 8 has been released. The company fears a decrease in income and its investors are also all at the edge of their chairs. The company reported that 16% of all iPhone sales were iPhone 8 and 8 Plus phones. This turned out to be lower than the 43% that took place in the release of the iPhone 7 and 7 Plus. This percentage is also lower than the 24% which occurred during the release of the iPhone 6S and 6S Plus.
The company predicts that the reason behind a lower sales rate for the iPhone 8 may be that customers believe the new features are not worth the price so they would rather invest in the iPhone 7 which includes the majority of the features that the iPhone 8 has. Their alternating hope is that customers are waiting to invest in the iPhone X instead because even though the price is greater, it has more features to offer which make it worth it. The company is now hoping to get a higher amount of pre-orders for the iPhone X, than the iPhone 8 or 8Plus because that would be a “good sign” for investors. Otherwise, investors “will fear the worst.”
This relates to our marketing class because demand is a predictor for the target market of a company. In this case, Apple should now be targeting users who have not purchased the iPhone 8 to lead them to invest in an iPhone X. This is where advertising kicks in, Apple needs to do better advertising for the iPhone X than they did for the iPhone X, or come up with a better idea altogether for a new iPhone.
(https://www.wsj.com/articles/iphone-8-posts-weak-initial-sales-pressuring-iphone-x-1509010201)
(https://www.wsj.com/articles/iphone-8-posts-weak-initial-sales-pressuring-iphone-x-1509010201)
Since they did not get much of a successful sales for their iPhone 8 they have to come up with a better way to promote their new product in order to attract higher sales.
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