The iPhone 7 Was Selling Better Than the iPhone 8. So Apple Started Discontinuing the iPhone 7.

The iPhone 7 Was Selling Better Than the iPhone 8. So Apple Started Discontinuing the iPhone 7.

Apple is destroying old phones as sales tank by 900,000+ units.

In previous years, fans have lined up for days on end to get their hands on Apple’s latest iPhone.

So how has the iPhone 8 fared?  Well, not so great.

Last week, KeyBanc Capital Markets found that unlike previous years, older model iPhones have outsold the latest iterations.  According to sales data, AT&T’s iPhone sales have gone down by 900,000 units compared to last year.

Instead, consumers are purchasing iPhone 7s instead of the latest models.  And who can blame them?

KeyBanc analyst John Vinh noted,

Many respondents indicated that a meaningful portion of customers are buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone.

The thrill of a new iPhone has faded.  Which introduces some simple math.  Wireless carrier store surveys show that consumers simply prefer to pay $549 for a discounted iPhone 7 over a $699 iPhone 8.  They also said that they would wait to see what the iPhone X has to offer.

So, with iPhone 7s in high-demand, it only makes sense to ship more ahead of the holiday season.  Not according to Apple, however.

Betting big on the X.

On September 12th, Apple unveiled the iPhone 8 and 8 Plus.  To celebrate the smartphone’s tenth anniversary, the hardware maker announced the iPhone X.

That same day, however, the company stopped selling the 256GB model on their website.  Apple customer service representatives have also confirmed that it no longer sells that specific model.

You can still purchase them at wireless carriers, however.  For $749.99, you can purchase a 256GB iPhone 7 from Verizon.  The wireless carrier sells the latest model for $100 more.

On Amazon, Apple sells an unlocked 256GB iPhone 7 for $849.  A refurbished one costs $619, while an AT&T-only version will set you back $509.99.

The hardware maker reportedly stopped selling the 256GB model to spur the sales of the X.  The premium-priced smartphone will come with two storage options: 64GB or 256GB.

But will the strategy work?

Comparing Apple’s premium-model with the 8 Plus, you’ll find only minimal differences.  The iPhone X has a 5.8-inch display and will cost $999, while the 8 Plus has a 5.5-inch screen and costs $799.

The hardware maker has also confirmed that despite its bigger screen, the X will only display apps like a regular iPhone 8.  The X will use the additional screen space for the notch and home button bar.  The 8 Plus, on the other hand, will use all 5.5 inches for apps, websites, and more.

Don’t expect videos to take up all of the X’s screen, either.  With 16:9 videos, you’ll have to get used to watching content with black bars.

The X will also do away with Touch ID entirely, unlike the 8 and 8 Plus.

Instead, the premium model will rely completely on Face ID.  Yet, how reliable will the untested technology be?  How long will it take Apple to resolve all of the bugs and quirks once it’s made available?

Most importantly, will the company be able to convince consumers to spend $1,000 on a smartphone with only a few new features?

In addition, multiple reports have stated that Apple will only sell the X in limited quantities.  Right now, consumers can easily purchase the 8 and 8 Plus at any Apple store or online.  Will availability problems limit the success of the X?

Apple will ship the iPhone X on November 3rd, with pre-orders starting on October 27th.  Only time will tell how well the X will fare, and whether consumers will rally behind the product.

 


Image by Maurizio Pesce (CC by 2.0)

7 Responses

  1. Remi Swierczek

    Steve Jobs created goodwill is almost gone and will never come back since all leading edge technology is at the competitor’s hands.

    I suggest to go back to MUSIC they way Steve was dreaming about it.

    Music goodwill is BIGGER than iPhone sales or all of the digital ads!

    Let’s wake up lazy brains living on the vapors someone’s else ingenuity and START $300B music business harvest.

  2. David

    The iPhone 8 is really a 7s. I don’t understand this release cycle.

  3. THE DUDE

    I think it’s simpler than one version of a phone is better than the other. The problem is these carriers are no longer subsidizing their phones.

    Most people don’t want to or financially can’t shell out $699 for a new phone. This is why people aren’t running to the stores to upgrade. If everyone could still pay what used to be the standard $199 + 2-year contract, people would have lined up & upgraded.

    I have a 6S that works great. I’d love to upgrade, but why am I going to tack on another $30+ to my bill a month for some extra bells and whistles? I expect to see a lot of iPhone promotions coming up, especially going into the holiday season.

    • Paul Resnikoff

      I also have a 6s, I can’t say it’s working perfectly but it’s good enough. The problem isn’t that I don’t want to pay for the bells and whistles on an upgrade, it’s that eventually, I will have to. The reason? My 6s will implode through spontaneous software awfulness, or I will destroy it with water, or it will get stolen, etc. These phones often don’t fare well in the wild, and Apple’s (and carriers’) business models are constructed around that.

      Trust me, when you walk into your Verizon store with a water-logged phone, they know EXACTLY what to do.

  4. Blobbo

    My 6splus is being wrecked by apple’s new iOS11 release. Amazon has released a $150 tablet. Apple has also made a long list of stupid errors on its regular hardware. This is a company that could soon be in a real spiral downwards if they don’t jettison that lousy CEO, just for starters.

    • Kenna

      I KNOW RIGHT! I have switched to Samsung after deciding that I wont spend all of this money every. Single. Year just so I can wait for next year’s more pricey phone. I had been using my old iPhone 5s for years now, I still can’t be surprised when my friends, who are always caught up with the new iPhone, are panicking because they cant afford to pay off their car anymore. I have recently switched to Samsung, and now I have a lovely Samsung Galaxy a10e. I couldn’t have felt better to get out of Apple and try something new. I definitely won’t be switching this phone for a different one for a few years.