Apple isn’t the company investors rave about anymore. Things could change in the future, but the stock price suffered incredible drops recently. The company can point to one emerging bright spot. The new iPhones appear to attract Android users. A recent report produced by the Consumer Intelligence Research Partners group revealed 16% of iPhone XR buyers previously used Android phones. The choice to upgrade reveals Apple might experience an infusion of new customers. Apple may now be desperate for an influx of cash and improved product sales.
The iPhone XR presents a benefit that benefits both Android and traditional iPhone users. The device comes with a reasonable price. Consumers who otherwise found it financially difficult to upgrade to a new model discovered an option with the iPhone XR. A drawback does exist here for Apple. Since the devices cost less than other iPhones, Apple receives less revenue from the sales. Again, Apple’s current stock woes need something to reverse the negative trend. Substantial sales help, but low cash flow isn’t always beneficial.
Demand for the XR, XS, and the vaunted X hasn’t set sales figures on fire. Upgrades associated with the new releases didn’t deliver many notable enhancements. The latest versions do improve somewhat over older models, but the changes aren’t ones consumers appreciate. Consumers don’t upgrade to access better RAM. They want stellar performance-related features. The new iPhones don’t deliver on consumer expectations. So, even Apple shouldn’t be surprised at low sales figures. Since Apple no longer publicly releases sales information related to the iPhone, consumers and investors may infer sales are unimpressive.
The iPhone XR may represent a minor comeback of sorts for device sales. Apple does need to deliver something truly innovative to see sales march upwards again. Otherwise, consumers won’t return to the fold and investors will continue to dump the stock.