The iPhone X Staged Breeze

It was lyrics for the ages. The Fugees, an American hip hop group in early 1990s, recorded the masterpiece which connected lovers around the world. The beginnings of the lines were like pains, but the whole meaning of the stanza is a breeze.

Strumming my pain with his fingers
Singing my life with his words
Killing me softly with his song
Killing me softly with his song
Telling my whole life with his words
Killing me softly with his song

Across campuses, pubs and joints, the story was the same: someone was killing someone, softly. Of course, if someone is killing someone, even softly, it was a trajectory of doom. But waiting a little longer to finish the line, the dimples would broaden, and the eyes would roll. It was not really a death path, but an ephemeral passion of humanity where words weaken, but in ecstasy.

Take it all together, it is a breeze: “a light gentle wind” which is harmless but from afar may be mistaken to be painful. Apple is having a breeze. Yes, the breeze is blowing and Apple is certainly going to enjoy. But those not closely entwined in the Apple business may mistake it as a storm.

The iPhone X pre-orders begin in earnest. It is a more expensive product, with its expensive face-scanning capabilities. It is expected to be in short supply. And will replace the highly lackluster iPhone 8 which has struggled to leave shelves since it was unveiled.

The Apple Staging

Simply, Apple used iPhone8 as a forerunner to iPhone X by making it clear that iPhone X is superior. That makes it obvious that Apple has innovated, creating a new marketing tool with a feature which is not available in any other phone. Apple shortened the launch gap, knowing full well that iPhone 8 will struggle under the shadows of iPhone X for a fashonista brand. In other words, Apple never gave iPhone 8 any opportunity to succeed in its luxury brand. People that buy for luxury cannot invest money on a product which has a sequel on the day of its launch, especially when that sequel is coming in weeks. It makes no sense; so the wait for iPhone X, by Apple global fans, making it impossible to sell iPhone 8.

Apple Inc.’s iPhone 8 posted the weakest sales of any of the company’s new smartphones in recent years, according to estimates by two market-research firms, raising the stakes for the higher-priced iPhone X as advance orders start on Friday.

In the U.S., Apple’s largest market, the iPhone 8 and its larger 8 Plus version accounted for 16% of all iPhone sales in the September quarter, according to Consumer Intelligence Research Partners LLC

From afar, you may think it is a tempest, by looking at the beginning of the line, as iPhone 8 could not move from the shelves. But if you finish the stanza, it is a breeze, for Apple, because iPhone X will do well. Without the iPhone 8, the iPhone X will not be long-awaited. Now, it is heralded because its predecessor was for cavemen (and women) before it was even shipped from factories. In the minds of Apple fans, Apple has further created an element of supreme value in iPhone X.  That is what you want in a product.

Here are things to note:

• Apple has been leaking how hard it was to create the 3-D sensor. When you read that, what comes to mind is obvious: only the very best could have solved that specific 3-D problem, and Apple did that in iPhone. Oh yes, the believers will continue to expand.
• The media people have been writing how hard it was for the vendors to meet Apple targets. Simply, the fans will appreciate all the efforts everyone is putting to make the best phone, ever.
• The media world has been saying that Apple will produce iPhone X in limited quantity. If you are a fan and hear or read that, the best strategy is to simply go out and take action. And that means pre-order before Apple decides to phase out production, after completing pre-orders!
• Apple opens a pre-order system for iPhone X which means if you want this product, you need to go right away and pre-order. That creates a new level of demand since not many people will get it at the same time. When you do that for a luxury product, the product becomes more luxurious. Simply, Apple has a stage and it is playing it.

All Together

Apple has set the stage for iPhone X and it will be the best selling electronics product of all time. Apple created a breeze, never a storm, despite what some may think. The company knew what it was doing. The struggle of the iPhone 8 may appear to be a pain, financially, but when you finish the stanza of the quarter, you will see glory. Apple excels in that. The iPhone 8 is another genius strategy to launch something ahead (the iPhone X) that will delight a fashonista’s Apple world.

At the end, Wall Street will push the stock upwards because the metrics for valuations are convoluted. Google parent company, Alphabet, made $7.8 billion profit on $27.8 billion quarterly revenue, largely from advertising. Google remains an advertising firm and that is what matters. Apple will remain an iPhone company and that is why iPhone X matters to Apple. Yet, at the same time Google was bringing billions in profit through its one-product company (search), Amazon had only $256 million profit on $43.7 billion in revenue. Yet, the markets cheered as Amazon beat analyst expectations. Now you know why staging expectations is more important than the actual results!

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