Did the iPhone X Fail? – Geared Up!

Did the iPhone X Fail? – Geared Up!


– [Todd] Welcome back to Geared Up, I’m Todd Bishop. – [Andru] I’m Andru Edwards. – [Todd] We have just been
pouring over Apple’s financials for its second quarter. – Just came out. – It’s March quarter, and
there’s some interesting trends in the iPhone sales. Let’s take a step back and
look at some of the rumors that have been coming out
over the past few weeks. There have been discussions of Apple cutting the production, the total number of devices, of iPhone 10’s that it produces. Which I think plays into
this larger narrative that the iPhone 10 has
not been as successful as people would have expected, but you look at these results, Apple sold 52.2 million iPhones. And they say the biggest
selling of those iPhones was the iPhone 10. – [Andru] Correct. – [Todd] So what’s going on here Andru? – I think there’s a few
ways to look at this. Number one, the iPhone 10
is the best-selling iPhone every week since its release. So, that’s a fact that Apple stated, but Apple released three
new phones instead of two. So, if one more than
one-third makes it the best, it would still be selling worse than 50%, or 51, you know what I mean? So– – I’m not following that actually. – If there’s only two
phones released, and 51, 49, let’s just say the 8 Plus is selling 51% and the 8 is selling 49%, if there’s three you’ll
need to sell 34% to– – Got it. – You know what I’m saying?
– Yep. – So, it could still be selling less than last year’s best-selling phone, but there’s three phones now. – They’re slicing up the
market among more phones. – Exactly. – So, you’re gonna have less market share relative to each other. – Yes. – So, it might not be as popular
as past flagship iPhones. – Correct. – That said, it seems
like overall, this device- – Yeah. – Is doing well. – In other words, I bet
every other phone company wishes it had a phone that sold as well as the “flop iPhone 10.” – So, overall the company
beat earnings expectations with 61 billion in revenue. And shares are up
– Wow. – Four percent. So, the stock market is
reacting positively to this. – That’s ridiculous. 52.2 million phones, a
quarter is three months, like they’re selling over
200 million phones in a year. So, I don’t see where
the worry or problem is. People have been saying
Samsung released a part of its earnings or statement the other day that its earnings wouldn’t
be what they were expected to be due to lower sales
on OLED screens, right? – Yes, right. – Now the iPhone 10 has
an OLED display in it, which Apple buys from Samsung, but so do all the Samsung phones. So, that could also just imply
that Samsung’s own phones are not selling as well. But everyone took it to mean, “Oh look, Apple’s phones
are not selling that well.” – Right. – I don’t know. – So, you’re still convinced
that the iPhone has some growth in it, it has a
future in it, and especially the iPhone 10- – I mean, I’m just
looking at these numbers. – Yeah. – If you look at the … All the facts are in the numbers. Everybody’s speculates when they see, “Okay, they’re lowering production,” which Apple does after
every Holiday Quarter, they lower production on
the latest phone every time. It’s just clockwork. But every time people are saying, “Oh look, they’re lowering, that must mean “it’s not selling well.” All of this stuff is speculation, but then when the numbers come out, the numbers are the facts. So, when you go by the numbers, it appears that people still want to buy an iPhone. It’s just, in my opinion, like my wife, she had an iPhone 10 for about
a week, she didn’t want it. She wanted an 8 Plus. She wanted the home button. She wanted the interface
that she was used to. And that’s why Apple did this. They were like, “Okay here,
we’re introducing our new “vision for iOS with the 10, “Everyone’s going to be
able to see this new vision “for at least a year. “If you want the old way,
we’re giving you that too, “but at least you know
there’s something new coming.” And I think that’s it. Like, some people like the
home button, some people don’t. Some people want the latest and
greatest, some people don’t. That’s just it. – Here’s another interesting
thing that I just spotted. So, if you go down to the
year-over-year change– In iPhone sales, units, in
other words the total number of units sold is up three percent. Revenue, what would you guess revenue is? I’m going to block my screen. – Okay. – So, they sold three
percent more devices. – Three percent more devices. – How much more money did they
make on the top line revenue? – Okay, okay. What I’m thinking about in my
head is that the 8 and 8 Plus are $50 more per unit this
year than the 7’s were, but the 10 is, you know, $300 more. – Yeah. – So, if the… What was the old number? – Well, it was three percent. Well, they- – Okay.
– Yeah. – Three percent. I would say- – Units. – I would say there was an
increase by six percent. – (laughs) Not even close. 14% increase in revenue– – What? – On the iPhone line. They went from last quarter’s,
a year agos quarter, 33.2 billion in revenue to
about 38 billion in revenue this time, so– – So, what does that tell you then? – So, they’re clearly
selling a ton of iPhone 10’s. – Yes, that is exactly what that means. – Yes, so– – Yeah, I was saying,
okay, if the iPhone 10 is the 35%, you know, with the other two– – Yeah. – There would be a marginal increase, and there should be an increase. I don’t know, this says to
me that there’s no problem. – To me, the bigger question
is, can Apple come up with the next game changing invention. I think potentially ARVR is it. But it’ll be interesting to see. Right now, they’re basically living off of the fumes of the businesses
that were built in the Steve Jobs era. – Right. – And the question is, can
they create the new businesses that will ensure their future. So, that’s the big question. All right, so that is a quick
run-down of Apple earnings, including some live analysis– – Yes. – Of the percentage changes
in revenue and unit sales. How often do you get that? – Never.
(laughs) – Never with us. This is the first time – All right, so that is
Geared Up for this week. Until next time, I’m Todd Bishop. – I’m Andru Edwards. – Don’t forget, by the way,
subscribe on Apple Podcasts, Overcast, wherever you get your podcasts. Make sure to subscribe to
the dedicated Geared Up Feed if you want to continue
getting the show longterm. – That’s right. – We’ll talk to you next week on Geared Up Thanks for listening.

11 thoughts to “Did the iPhone X Fail? – Geared Up!”

  1. WATCH NEXT: iPhone X Review Animoji Style: https://www.youtube.com/watch?v=Zvk697h8mxw – What are your thoughts on the iPhone X? Did you pick one up? Did you stick with an 8 or 8 Plus instead? Team Android? Let me know!

  2. Even if the iPhone X failed, it still far exceeded the sales projections for any of Apple’s competitors. That goes for Samsung, Google, LG etc. The iPhone X only failed by Apple’s insanely high golden standard, and even then it sold amazingly well. Only haters and Android fanboys are saying that the iPhone X failed, when their favorite phones probably didn’t even do half of the same numbers.

  3. Its weird saying that the X is so sucesfull since here in Croatia I've never actually seen that phone,not even in the store

  4. Based on the evidence you’d have to be a liar to say that the iPhone X was a failure. Unless 52 million phones sold is a failure in one quarter lmao

  5. @Andru Edwards
    Interesting discussion.
    I still have the iPhone 7 Plus and at the moment, I'm not sure if my next phone will be an iPhone or if I'll move to a Samsung. I really like iOS, but I don't like how Apple is so restrictive in many things and how they don't apply functions til years after Samsung.

  6. Hey. I'm gonna talk about the sales numbers for the Galaxy S9 phones and the iPhone X. When the sales numbers for the iPhone X was released earlier, it had been selling for 3 months since January. But at the same time, when the sales numbers for the Galaxy S9 phones was released, they had only been on sale for like 2 weeks as they was released in the middle of March which is the end of the first quarter.

    So if you looks at the sales number for the Galaxy S9 phones because of that, the sales numbers (5.6 million units i think it was) is infact pretty good or even better than the iPhone X here.

    Yes, don't just look at the numbers alone in a complete blindness, because it's going to trick you out.

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