Adobe Shares Slump As 2016 Forecast Disappoints

[HardOCP News]

Apparently the market didn't react well to Adobe lowering its profit forecast for 2016.

Adobe Systems Inc lowered its profit forecast for 2016 below analyst estimates partly due to a strong dollar, sending its shares down as much as 13 percent in extended trading. The Photoshop maker said it expects full-year revenue of about $5.7 billion and an adjusted profit of $2.70 per share.

 

[Killtek]

Or.. they could lower their subscription prices for Creative Cloud and applications.

 

[Uvaman]

Or.. they could lower their subscription prices for Creative Cloud and applications.

Holy crap, I was going to argue with you 'cause I remembered much lower prices.
at 9.99 up to 80$/mo, screw that crap.
Price I remember must have been introductory.
I would never even consider those prices
That being said, excellent window for Corel or other companies to keep jumping in their neck for the 'residential/ non commercial' market (I have some paid-once Corel software)
They need to get smart about this, have very cheap tiers, with no support for 'residential' and full-blown support, with big cloud backing (gigabytes or terabytes, fully encrypted) for commercial at a higher price per user.

 

[cyclone3d]

Yay! They are finally finding out that monthly subscriptions for software is what people will not buy.

 

[nutzo]

Yay! They are finally finding out that monthly subscriptions for software is what people will not buy.

This, except I doubt they will learn.

We have a few copies of Adobe software in the office that's lightly used. It's mostly used by marketing to open files created by outside vendors.

We used to upgrade every few years when we started having problems opening up files from newer versions of the software, but haven't bothered since they started pushing the subscription model.
I gave the manager the information on what the subscription model would cost, and they decided it was way too much, so they just manage with the old version.

 

[SparkedFire]

Honestly, the subscription has it's place, but they went all in.

I couldn't afford to plop down what they were asking for before, so I welcomed the subscription option. In the long run, I think going all in on the subscription model will hurt them.

 

[dr.kevin]

no wonder they were giving away $10 off $10 for amex card holders

I was looking at that offer and wondering WTF I could buy at adobe.com.

Nothing.

 

[madFive]

I'm pretty glad to see this actually. As a long time Adobe software user, I absolutely refuse to pay monthly for their software, so the sooner they get over this horrible scheme the better. Luckily all my software is currently up to date with CS6, so I expect to be able to ride out the next 2-3 years at least and wait to see where this goes.

 

[Flogger23m]

Honestly, the subscription has it's place, but they went all in.

I couldn't afford to plop down what they were asking for before, so I welcomed the subscription option. In the long run, I think going all in on the subscription model will hurt them.

It is an okay deal for those that actively use it, but for those who stop using it frequently it becomes a bad deal. If you only use it 5-8 times a year for quick tasks, $80+ a year becomes too steep. I can see people who moved into other fields picking up GIMP because paying that much money for software you rarely use isn't worth it.

 

[jeremyshaw]

It is an okay deal for those that actively use it, but for those who stop using it frequently it becomes a bad deal. If you only use it 5-8 times a year for quick tasks, $80+ a year becomes too steep. I can see people who moved into other fields picking up GIMP because paying that much money for software you rarely use isn't worth it.

I picked up Photoshop Express and Premiere Express a number of years ago. At is turns out, I rarely used most of the CS features enough to justify paying full price for them (as I used to) or even subscribing. The few times I'm missing a tool or a feature, something else can approximate it.

That being said, if a proper CS came out again, I'd buy Premiere - if I haven't moved to Final Cut Pro by then. Everyone is pushing me towards that direction, and the few times I've played with it in the Apple store, has been impressive.

 

[Staples]

I am a subscriber to their photography suite. It is $10 a month which is fair but it comes with Photoshop which I never use. I wish I could just do LIghtroom for $7 a month.

 

[rufio]

I am a subscriber to their photography suite. It is $10 a month which is fair but it comes with Photoshop which I never use. I wish I could just do LIghtroom for $7 a month.

You can still buy Lightroom as a perpetual license. Hit this link and it's halfway down for $149.

 

[nb14]

I don't see this as a massive issue for Adobe to be honest

 

[tybert7]

Holy crap, I was going to argue with you 'cause I remembered much lower prices.
at 9.99 up to 80$/mo, screw that crap.
Price I remember must have been introductory.
I would never even consider those prices
That being said, excellent window for Corel or other companies to keep jumping in their neck for the 'residential/ non commercial' market (I have some paid-once Corel software)
They need to get smart about this, have very cheap tiers, with no support for 'residential' and full-blown support, with big cloud backing (gigabytes or terabytes, fully encrypted) for commercial at a higher price per user.

Ideally, if a company is going to try to make money off subscriptions, they need to have a LOWER price compared to buying the software outright stretched over 3-5 years of use.


How much does the adobe suite cost outright?, now divide by 120. 60 months, and another 50% discount. Do the same for each individual software suite, give additional discounts for people who use more than one tool.

Then it would make more sense.

 

[DPI]

I don't see this as a massive issue for Adobe to be honest

People seem to just be assuming this headline is directly related to their software being perpetual subscription now, but there's no evidence of that.

I'm not a fan of pay-forever software either but I wouldn't assume they wouldn't be in the same boat if it was still boxed copies being sold.

 

[Anemone]

Yeah, Adobe, the "cloud" thing? Not so great a plan after all...

 

[AVogel]

Wish I had the "problem" of only having 5 billion dollars in revenue in one year.....