{"id":671,"date":"2020-07-23T15:55:55","date_gmt":"2020-07-23T15:55:55","guid":{"rendered":"https:\/\/www.stremon.com\/?p=671"},"modified":"2020-07-23T15:55:55","modified_gmt":"2020-07-23T15:55:55","slug":"the-end-of-apple","status":"publish","type":"post","link":"https:\/\/www.stremon.com\/the-end-of-apple\/","title":{"rendered":"The End Of Apple"},"content":{"rendered":"<p><em>Correction note: This article originally stated that Apple had hiked iPhone prices by 500% in the past eight years; in 2010, you could buy a brand-new iPhone 4 for 199 bucks; in 2014, the newly released iPhone 6 cost 299 bucks; the cheapest model of the latest iPhone X costs\u00a0$1,149.<\/em><\/p><div class=\"awexn64eee0385c2e3\" ><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\n<ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-8209967072221559\"\n     data-ad-slot=\"2673331731\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/div><style type=\"text\/css\">\r\n@media screen and (min-width: 1201px) {\r\n.awexn64eee0385c2e3 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 993px) and (max-width: 1200px) {\r\n.awexn64eee0385c2e3 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 769px) and (max-width: 992px) {\r\n.awexn64eee0385c2e3 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 768px) and (max-width: 768px) {\r\n.awexn64eee0385c2e3 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (max-width: 767px) {\r\n.awexn64eee0385c2e3 {\r\ndisplay: block;\r\n}\r\n}\r\n<\/style>\r\n\n<p><em>\u201cOh man, that\u2019s almost a month\u2019s rent for me\u2026\u201d<\/em><\/p>\n<p>Here I am sitting in a cab in New York City.<\/p>\n<p>I\u2019m headed uptown to Columbia University where we\u2019ll hold the first-ever\u00a0<em>American Disruption Summit<\/em><em>.<\/em>\u00a0(You can\u00a0register to watch for free here.)<\/p>\n<p>The driver and I are talking about the absurd price tag of the latest Apple (AAPL) iPhone.<\/p>\n<p>He\u2019s shocked when I tell him the\u00a0cheapest model\u00a0is $1,149.<\/p>\n<p>\u201c<em>Who can afford that<\/em>?\u201d he asks.<\/p>\n<p><strong>Apple\u2019s Imminent Crash Has Begun<\/strong><\/p>\n<div class=\"recirc-unit recirc-unit-open\" data-gtm-vis-first-on-screen-655684_1281=\"5999\" data-gtm-vis-total-visible-time-655684_1281=\"100\" data-gtm-vis-has-fired-655684_1281=\"1\">\n<div class=\"recirc-title\">Most Popular In:\u00a0Markets<\/div>\n<ul class=\"recirc-story-list\">\n<li class=\"recirc-story\">\n<h3 class=\"recirc-headline\" data-ga-track=\"SEO Recirc Unit: 4\">Amazon Just Put Tesla On Notice<\/h3>\n<\/li>\n<li class=\"recirc-story\">\n<h3 class=\"recirc-headline\" data-ga-track=\"SEO Recirc Unit: 5\">We Looked At How The Stock Market Performed Under Every U.S. President Since Truman \u2014 And The Results Will Surprise You<\/h3>\n<\/li>\n<li class=\"recirc-story\">\n<h3 class=\"recirc-headline\" data-ga-track=\"SEO Recirc Unit: 6\">Where\u2019s My Money? What You Need To Know About The Next Big Stimulus Bill<\/h3>\n<\/li>\n<\/ul>\n<\/div>\n<p>Apple has had an incredible decade.<\/p>\n<p>Since the iPhone debuted in 2007, the company\u2019s sales have jumped tenfold. The stock has soared over 700%.<\/p>\n<p>And up until last November, it was the world\u2019s largest publicly traded company.<\/p>\n<p>But two weeks ago, Apple issued a rare warning that shocked investors.<\/p>\n<p>For the first time since 2002, the company slashed its earnings forecast. The stock plunged 10% for its worst day in six years.<\/p>\n<p>This capped off a horrible few months in which Apple stock crashed about 35% from its November peak.<\/p>\n<div id=\"attachment_191\" class=\"wp-caption wp-caption-wrap alignnone\">\n<div class=\"article-body-image\"><img decoding=\"async\" src=\"https:\/\/thumbor.forbes.com\/thumbor\/960x0\/https%3A%2F%2Fblogs-images.forbes.com%2Fstephenmcbride1%2Ffiles%2F2019%2F01%2FApple1.jpg\" alt=\"Apple Wipeout\" \/><\/div>\n<div class=\"article-image-caption\">\n<div class=\"caption-container\">\n<p class=\"wp-caption-text\" aria-hidden=\"true\">Apple Wipeout<\/p>\n<p><small class=\"article-photo-credit\">RISKHEDGE<\/small><\/div>\n<\/div>\n<\/div>\n<p>That erased $446 billion in shareholder value\u2014the biggest wipeout of wealth in a single stock\u00a0<em>ever.<\/em><\/p>\n<p>And it\u2019s only the beginning\u2026<\/p>\n<p><strong>Apple\u2019s Strong Revenue Growth Hides a Dirty Secret<\/strong><\/p>\n<p>If you looked at Apple\u2019s sales numbers, you wouldn\u2019t see anything wrong.<\/p>\n<p>Since 2001, Apple has seen steady revenue growth:<\/p>\n<div id=\"attachment_192\" class=\"wp-caption wp-caption-wrap alignnone\">\n<div class=\"article-body-image\"><img decoding=\"async\" src=\"https:\/\/thumbor.forbes.com\/thumbor\/960x0\/https%3A%2F%2Fblogs-images.forbes.com%2Fstephenmcbride1%2Ffiles%2F2019%2F01%2FApple2.jpg\" alt=\"Apple Sales\" \/><\/div>\n<div class=\"article-image-caption\">\n<div class=\"caption-container\">\n<p class=\"wp-caption-text\" aria-hidden=\"true\">Apple Sales<\/p>\n<p><small class=\"article-photo-credit\">RISKHEDGE<\/small><\/div>\n<\/div>\n<\/div>\n<p>By this measure, Apple\u2019s business seems perfectly healthy. But there\u2019s a secret hidden behind these headline numbers.<\/p>\n<p>Despite the revenue growth, Apple is selling fewer iPhones every year.<\/p>\n<p>In fact, iPhone unit sales peaked way back in 2015. Last year, Apple sold 14 million fewer phones than it did three years ago.<\/p>\n<p><strong>Apple Kept Revenue Growth Only by Raising iPhone Prices<\/strong><\/p>\n<p>In 2014, the average selling price for iPhone was roughly $600,\u00a0according to Statista.<\/p>\n<p>When Apple released its latest flagship phone last year, the average iPhone price went up to $800,\u00a0according to Statista!<\/p>\n<p>But technology always gets cheaper over time.<\/p>\n<p>Not so long ago, a flat-screen high-definition TV was a luxury. Even a small one cost thousands of dollars. Today you can get a 55-inch one from Best Buy for $500.<\/p>\n<p>In 1984, Motorola sold the first cell phone for $4,000. The average price for a smartphone today is $320, according to research firm IDC.<\/p>\n<p>In all, cell phone prices have come down roughly 92%.<\/p>\n<p>Frankly, it\u2019s remarkable that Apple has managed to pull this off.<\/p>\n<p>But let me tell you this\u2026<\/p>\n<p><strong>Apple Can\u2019t Raise Prices Anymore<\/strong><\/p>\n<p>It comes down to the lifecycle of\u00a0disruptive businesses.<\/p>\n<p>Twelve years ago, only\u00a0120 million\u00a0people owned a cell phone. Today over\u00a0five billion people own a smartphone, according to IDC.<\/p>\n<p>Apple was the driving force behind this explosion. As the dominant player in a rapidly growing market, it become the most profitable publicly traded company in history.<\/p>\n<p>Then iPhone sales growth stalled in 2015. This would\u2019ve been the end for most businesses.<\/p>\n<p>But Apple did a masterful job of extending its prime through price hikes.<\/p>\n<p>Its prestigious brand and army of die-hard fans allowed it to charge prices that seemed crazy just a few years ago.<\/p>\n<p>But now iPhone price hikes have gone about as far as they can go.<\/p>\n<p>After all, what\u2019s the most\u00a0<em>you<\/em>\u00a0would pay for a smartphone?<\/p>\n<p>$1,500?<\/p>\n<p>$2,000?<\/p>\n<p>How bad is this? It\u2019s so bad that Apple now keeps it a secret.<\/p>\n<p>In November, Apple announced it would stop disclosing iPhone unit sales.<\/p>\n<p>This is a very important piece of information. Investors deserve to know it. Yet Apple now keeps it secret.<\/p>\n<p><strong>Keep in Mind, the iPhone is Apple\u2019s Crown Jewel<\/strong><\/p>\n<p>iPhone generates two-thirds of Apple\u2019s overall sales.<\/p>\n<p>Let that sink in\u2026<\/p>\n<p>A publicly traded company that makes most of its money from selling phones is no longer telling investors how many phones it sells!<\/p>\n<p>And its other business lines can\u2019t pick up the slack for falling iPhone sales.<\/p>\n<p>Twenty percent of Apple\u2019s revenue comes from iPads and computers. Those segments are also stagnant.<\/p>\n<p>Which means 86% of Apple\u2019s business is going nowhere.<\/p>\n<p>Could Apple go the other way and slash iPhone prices?<\/p>\n<p>I ran the numbers.<\/p>\n<p>If Apple cut prices back to 2016 levels, it would have to sell 41 million additional phones just to match 2018\u2019s revenue.<\/p>\n<p><strong>Will Apple Meet Nokia\u2019s Fate?<\/strong><\/p>\n<p>Before Apple, Nokia (NOK) was king of cell phones.<\/p>\n<p>In 2007 the front-cover headline of a major business magazine read:<\/p>\n<p><em>\u201cNokia: One billion customers\u2014can anyone catch the cell phone king?\u201d<\/em><\/p>\n<p>The iPhone debuted in 2007. Here\u2019s Nokia\u2019s stock chart since then:<\/p>\n<div id=\"attachment_193\" class=\"wp-caption wp-caption-wrap alignnone\">\n<div class=\"article-body-image\"><img decoding=\"async\" src=\"https:\/\/thumbor.forbes.com\/thumbor\/960x0\/https%3A%2F%2Fblogs-images.forbes.com%2Fstephenmcbride1%2Ffiles%2F2019%2F01%2FApple3.jpg\" alt=\"Nokia\" \/><\/div>\n<div class=\"article-image-caption\">\n<div class=\"caption-container\">\n<p class=\"wp-caption-text\" aria-hidden=\"true\">Nokia<\/p>\n<p><small class=\"article-photo-credit\">RISKHEDGE<\/small><\/div>\n<\/div>\n<\/div>\n<p><strong><em>This under-the-radar stock could be like buying Apple in 2001.\u00a0<\/em><em>Unlike Apple, which needs new avenues of growth to keep its stock price from plummeting, this undervalued stock is poised to profit from the coming explosive growth in the marijuana industry.\u00a0Find out the name of the stock here.<\/em><\/strong><\/p><div class=\"zfdxa64eee0385c322\" ><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\n<ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-8209967072221559\"\n     data-ad-slot=\"2673331731\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/div><style type=\"text\/css\">\r\n@media screen and (min-width: 1201px) {\r\n.zfdxa64eee0385c322 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 993px) and (max-width: 1200px) {\r\n.zfdxa64eee0385c322 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 769px) and (max-width: 992px) {\r\n.zfdxa64eee0385c322 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 768px) and (max-width: 768px) {\r\n.zfdxa64eee0385c322 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (max-width: 767px) {\r\n.zfdxa64eee0385c322 {\r\ndisplay: block;\r\n}\r\n}\r\n<\/style>\r\n\n<p>Source:<a href=\"https:\/\/www.forbes.com\/sites\/stephenmcbride1\/2019\/01\/21\/the-end-of-apple\/#2c8d66356dc0\" target=\"_blank\" rel=\"nofollow noopener\">\u00a0forbes.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Correction note: This article originally stated that Apple had hiked iPhone prices by 500% in the past eight years; in&#8230;<\/p>\n","protected":false},"author":5,"featured_media":672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[9],"tags":[2776,2751,2755,2752,2749,2766,2764,2768,2765,2750,2770,2756,2758,2753,2769,2757,2761,2780,2747,2746,2763,2748,2760,2762,2781,2775,2754,2777,2778,2767,2773,2772,2779,2774,2745,2771,2759],"_links":{"self":[{"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/posts\/671"}],"collection":[{"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/comments?post=671"}],"version-history":[{"count":1,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/posts\/671\/revisions"}],"predecessor-version":[{"id":673,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/posts\/671\/revisions\/673"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/media\/672"}],"wp:attachment":[{"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/media?parent=671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/categories?post=671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/tags?post=671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}