Apple Can’t Buy Good Press Right Now
CNBC, Fortune, CNET and others report Apple Inc. (NASDAQ: AAPL) faces at least two class action lawsuits over “throttling” of iOS software on older iPhones.
Rather than notify customers of needed upgrades, it appears AAPL may have simply throttled back the phone’s performance to offset weakening batteries.
Are you hopping mad? Neither are we.
Phones follow the razor blade model. They ain’t cheap. And they don’t last forever. It’s a fact of life. Technology is as disposable these days as any other consumer item.
The past week has not been a great public relations moment for AAPL.
The real story is the iPhone X. It’s not selling like hotcakes. Selling like cold cakes would be good news at this rate.
Reuters, Bloomberg, USA Today and others report demand for the iPhone X is soft compared to the iPhone 8 and iPhone 8 Plus.
In the end, maybe Apple gets a dose of their own medicine here. They released two new phones, the less expensive of which (the new 8) is better than the more expensive one (the X.)
The market decides. And bad business decisions get punished by consumers. Apple shares over the last month:
Despite the “meh” market reaction, clouds could be gathering on the horizon for AAPL.
AAPL has real competition these days from Samsung and others. As a luxury product, Apple’s devices must, if nothing else, have wow factor curb appeal that makes friends envious.
That’s the whole point of AAPL products, right?
An expensive new phone no one wants and a dastardly plan to slow down old ones doesn’t fit the high-end “change the world” mantra AAPL’s followed for years.
We’ve been saying it for months. AAPL needs a new idea. 2018 might be the company’s year of reckoning without one.
Taking a look at the markets this morning…
Market Rundown for Wed., December 27
S&P 500 futures are up 2.00 at 2,689 this morning.
Oil’s off $0.54 at $59.43.
Gold’s had a not half bad month, up $1.60 this morning at $1,289.
The VIX is still right around 10.00. In “historically” low territory. When was the last time you remember this little “fear” in the markets? Does that make you nervous?
Speaking of nervous, how much Bitcoin did you buy (or sell) on Friday? For a minute there, we thought it might be the “correction” so many have been predicting.
Bitcoin goes for $15,770 this morning. The run to “$1 million Bitcoin” continues.
Talk with you again on Friday.
For the Rundown,