Wednesday, February 6, 2019: $174.24 +0.06 (+0.03%) Feb 6, 2019 16:13:01 GMT -5 Since84 likes this
Post by rmhe1999 on Feb 6, 2019 16:13:01 GMT -5
WE have the strongest economy in the world and the highest standard of living. Apple also happens to have the highest market share here as well. Here are the prices of iPhones Max in some countries.
In China alone it is $1800+. Very few can afford that price.
I can afford it but it would be a total waste of money to buy the biggest for $1449. I would rather buy a MacBook for that price.
With 62% of sales outside the US for iPHone, those price limits the number of people that are willing to pay that much for a cell phone.
Apple offered the XR for $749. Yet even in the US the growth was only 5%.
On a side note I have been trying to get my kids to use Apple Music since we pay $15 a month for it. They both tell me that Spotify or Utube is all they need. 50 million subscribers to Apple Music vs Spotify 96 million tells me Apple can do better in that area. I think they bought Beats for headphones and music management. Not sure 5 years later we got our money’s worth and Spotify is pulling away from us with paid subscriptions.
The IP that Apple acquired from Beats turned into Apple music; that is they bought beats for their streaming IP, not their headphones. The main reason Spotify has more listeners is that it's been around longer and is available on more platforms (both iOS and Android). The main difference between Apple Music and Spotify is that Spotify does not yet turn a profit, while Apple Music is bundled into Apple's "Services" revenue and is indeed showing a nice profit with hefty margins. I think both can coexist. I don't think Apple is in any hurry to "dethrone" Spotify. If Spotify doesn't eventually turn a profit, whether by adding premium users or by growing user base, natural selection will take care of things. Meanwhile, Apple's user base continues to grow which will contribute towards healthy growth in Apple music subscriptions.
Remember! It's not about total units sold (like with iPhones); it's about the profit you make on the ones you do. I believe the same applies here to Apple Music and number of paid subscribers.