Economic pressures hurting iPhone 13 salesSunday, September 26, 2021
Sales of Apple's newly released iPhone 13 have not met expectations despite the company keeping the sale price of the device on par with its leading model, the iPhone 12.
Up to the middle of last month, there were also reports that iPhone sales weren't slowing down even with the impending release of their latest technology. The company usually experiences a seasonal decline in sales when it's about to release upgraded products.
According to financial coach, founder and CEO of Profit Jumpstarter, Keisha Bailey, challenges on the economic front as well as concerns about the product itself have been influencing take up of the new phones.
Speaking on Taking Stock with Kalilah Reynolds, she noted that Apple had decided to keep the product at the same price as the iPhone 12 to underscore their efforts at being an 'inflation-proof' company, even while several sectors of the global economy continue to see a rise in prices brought on by the uncertainties of the pandemic.
However, she said the item has not become a priority for many as a result of the current economic environment. Bailey reasoned that the release of the iPhone coincided with the pull back in economic stimulus from the United States Federal Reserve which meant many now have less money available.
She said the price point of the phone would have also not been a huge buying factor for some as there have been complaints that the new device had little differences when compared to the iPhone 12.
“People are saying they can't eat an iPad. Yes, Apple has done a good thing by maintaining the price of their iPhone but it hasn't been met well with the market because at the end of the day you can't eat an iPad, it is a discretionary item when it all boils down to it,” she said.
Bailey reasoned that people continue to struggle with increasing food prices and shipping costs. On top of that, she added that there's been a 'puke fest' on the US stock market which has contributed to the shift in consumer spending.
She said all sectors of the US economy have dropped, with September historically being a month where there's a general pull back in the market. On the flip side, she said this situation does present an opportunity for investors, whether in that market or even those in Jamaica, to get in on some of the stocks that were being eyed in recent times.
“The stock market has been on a downward trend, people just haven't been focused on going to buy the latest iphone right now when there haven't been much improvements in the overall technology,” she said.
According to Bailey, the economic stimulus would have also contributed to the situation now happening on the stock market as several people who would have gotten the money, ended up using it to invest which then pushed the market up. The stimulus was however intended to be used by these persons to buffer their day to day expenses.
Bailey said with the drawback now on the financial support, people have been cashing in on their gains and coming out of the market. She added that this would have propelled some of the selling today.
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