Apple has been reduced to ‘gasp!’ salesmanship

Clutch your pearls. Prepare the fainting couches. Are you ready for this bombshell? Apple Inc. actually has to try to sell its phones. How embarrassing.
Bloomberg News had a look inside the Apple empire, which has shifted some staff members to work on marketing the latest iPhone models released this fall, and the company or its partners are deploying incentives to move the merchandise. One person described the situation as a ‘fire drill.’
The company recently offered a $300 discount in at least some places on its lowest-priced new iPhone with a trade-in of a two-year-old model. Wireless carriers in Japan are moving to give subsidies to boost sales of the same new iPhone. And Apple store personnel were encouraged to tout a program with higher trade-in prices for older iPhones.
It shouldn’t be news that a company that sells consumer products is discounting merchandise or seeking to peddle its products. Even Apple is not immune to the behaviour of a typical company. It is one of the biggest spenders on television commercials to nudge people to consider buying its smartphones, Mac computers and other products. And like many consumer electronics companies, Apple has worked in the past to help subsidise the cost of iPhones or find other ways to give people a financial reason to pick Apple’s devices over those of rivals.
But at least outwardly, Apple has behaved as though the normal rules of consumer companies don’t apply. In Apple’s world, the company’s amazing products sell themselves, or at least that was the perception Apple preferred to portray to the world. The company is brilliant about product segmentation, pricing and marketing strategies, but Apple would never, ever, admit it.
Now it’s getting harder for Apple to pretend it’s not trying. By all accounts, sales in the smartphone market have stopped growing and may even be declining slightly despite booming demand in India and some other countries. Research firm Gartner said that sales of smartphones in the third quarter crept up 1.4 percent from the same period in 2017.
Apple does not acknowledge the state of the smartphone market, but it’s tough to buck the trends of flat-lining consumer smartphone demand. It’s true that the company has done an impressive job persuading its fans to pay more for a product that is a price-sensitive commodity in most of the world. The recent success shows that hundreds of millions of people like Apple’s products and want to keep buying them rather than alternatives. This is a good thing for Apple in the long term.
Unless something changes, Apple will need to keep trying harder to sell its most important product. In fact, it is trying harder but the company could be doing much more.
Consider what Apple has done just in last year or so to lure more people to its iPhones and other products. The company agreed to make its digital music service available on Amazon.com Inc.’s voice-activated speakers as a way to widen number of people who might pay for Apple Music, a relatively unusual decision for Apple, which in the past has tried to keep users locked in its own ecosystem. Apple has also done more to spur downloads of iPhone and iPad apps.
Like humans in middle age, Apple is forced to confront the reality of working harder to maintain a level of health and vitality it took for granted before. That’s life, and that’s reality for Apple’s business, too.
—Bloomberg
Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.