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iPhone Dominance and Pricing Over the Years

18 Sep

Yes, iPhones are a big deal, which we discussed last week when the 10th anniversary models were unveiled. Since introduction, the iPhone has represented a HUGE percentage of Apple’s total revenues.

As the following chart from Statista shows:

“Since 2007, Apple’s iPhone sales have consistently increased. It has gone from 40 million units sold in 2010 to more than 212 million in 2016. iPhone sales worldwide were over 136 billion U.S. dollars in 2016. As sales increased, the iPhone gained within the company. It has become the most successful Apple product to date. The iPhone’s share of the total revenue has jumped from 25 percent in the beginning of 2009 to 70 percent in the first quarter of 2017. As of the first quarter of 2017, iPhone’s share of revenue was at 69.4 percent. Much of the iPhone’s success can be attributed to Apple’s ability to be competitive, with new releases and updates.”

 

iPhone Share of Apple Sales worldwide — 2009-2017

Chart by Statista

 

Apple has accomplished these results despite large price increases. According to Niall McCarthy, writing for Statista, and the chart below: 

“The unveiling of the iPhone X was the most eagerly anticipated part of Apple’s launch extravaganza [on September 12, 2017]. The new handset made a daring design move in ditching the home button, while it now boasts a facial scanner and the ability to make animated emojis. For some fans, the enthusiasm of the event and the enormous hype surrounding the iPhone X will be tampered by the device’s exorbitant price tag. The iPhone X will cost between $999 and $1,149 for U.S. users. That makes it the most expensive iPhone to date, costing more than the iPhone 6s and 7 Plus, both of which hit the market at $949 (256GB). Back when the original iPhone was unveiled by Steve Jobs in 2007, the 4GB version of the device cost $499 and the 8GB version cost $599 (both requiring a 2-year contract).”

 

Chart by Statista

 

Impact on Phone Carriers of Unlimited Plans

30 Aug

The price competition among wireless phone service providers has certainly benefited consumers. But the extensive marketing of unlimited usage plans — at the same time that prices have been dropping — is impacting on network speed for Verizon and AT&T customers.
 
Rayna Hollander describes it thusly for Business Insider:

Verizon’s and AT&T’s reactive moves to expand unlimited data plans may be stifling their network speeds, according to T-Mobile CTO Neville Ray. A nosedive in megabits per second (Mbps) for the two companies during Q2 2017, coinciding with the launch of their new unlimited offerings, could suggest that the two networks were strained by the sudden uptick in data consumption.”

“It was only after the first full quarter since offering an unlimited plan that Verizon plummeted to third place, behind AT&T on network speed. Meanwhile, T-Mobile’s network ranks first in download speed and LTE availability in the U.S., Ray said, referring to Ookla data. In Q2 2017, the carrier reached average speeds of 27 Mbps. The success of T-Mobile’s strategy signifies how smaller companies can fly past competitors and swiftly disrupt markets, specifically the U.S. carrier model.”

“As smartphone and tablet adoption in the U.S. approaches saturation, carriers have begun fighting over the same subscriber base. T-Mobile’s disruptive, yet appealing, unlimited offerings have continued to eat into the customer base of rival carriers Verizon and AT&T. In Q1 2017, T-Mobile added 1.1 million customers, and Verizon had a net decline of 307,000 wireless postpaid connections.”

 

 

Do YOU Understand YOUR Credit Report?

27 Jun

As shoppers and as marketers, we know that an individual’s credit score is very important in determining the rate of interest a person pays for a credit card or loan transaction, how much they are able to buy on credit (the spending limit), etc. An excellent rating is an important guide for both shoppers and buyers. But, do we know how a credit rating is computed?
 
Here is a good video overview from Barclaycard U.S..
 

 

The Unique Back Story of Warby Parker

12 Jun

Warby Parker is a highly successful online — and now store-based — marketer of eyeglasses and sunglasses (“Prescription eyeglasses, starting at $95, with free shipping and free returns.”). As it notes on its Web site:

“Warby Parker was founded with a rebellious spirit and a lofty goal: to offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses. Every idea starts with a problem. Ours was simple: glasses are too expensive. We were students when one of us lost his glasses. The cost of replacing them was so high that he spent the first semester of grad school without them, squinting and complaining. The rest of us had similar experiences, and we were amazed at how hard it was to find a pair of great frames that didn’t leave our wallets bare. Where were the options?”

“There was a simple explanation. The eyewear industry is dominated by a company that has been able to keep prices artificially high while reaping huge profits from consumers who have no options. We started Warby Parker to create an alternative. By circumventing traditional channels, designing glasses in-house, and engaging with customers directly, we’re able to provide higher-quality, better-looking prescription eyewear at a fraction of the going price. We believe that buying glasses should be easy and fun. It should leave you happy and good-looking, with money in your pocket.”

“We also believe that everyone has the right to see. Almost one billion people worldwide lack access to glasses, which means that 15% of the world’s population cannot effectively learn or work. To help address this problem, Warby Parker partners with non-profits like VisionSpring to ensure that for every pair of glasses sold, a pair is distributed to someone in need.”

 
Take a look at this Inc. video featuring Warby Parker founder Neil Blumenthal.

 

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