SUMMARY: In a report to investors obtained by Reuters, US financial services giant Citi Group has delivered a stark warning to Apple that its iPhones in general, and iPhone XS Max in particular, are in trouble.  Not only are sales tanking on the iPhone, but a review of social media indicates that the latest iOS updates are causing issues.  This shouldn’t be a surprise.  The idea that people were willing to pay $700 for a new iPhone was dead before they were launched.

Apple’s <i>“luxury”</i> strategy not working out too well

  • Apple stunned analysts when they said they are not going to report iPhone or Mac sales numbers.
  • The new iPhone, despite the buzz, has not lived up to analyst expectations in sales.
  • The new MacBook Air and iPad Pro are overpriced and the buzz on social media indicates that consumers are going to pay extra money for Apple products.

If you watched the Apple Keynote yesterday you witnessed why Apple’s best days are behind them.  Apple executives still see themselves as celebrities and rather than lead with innovative products, they still believe that consumers are willing to pay premium prices for products with an Apple logo.

Every year business magazines talk about the top brands but most of the brands on their list are in serious trouble.  Coke and Pepsi, for example, are always on the list, but as consumers move away from soda their sales continue to decline.  So is brand equity dead?