The (i)Phone business is not what it was

But that wasn’t all. In an extraordinary letter to Apple investors, CEO Tim Cook also told stockholders what he should have been saying for years: The company’s iPhone business has shifted into a lower gear because of changes in the smartphone market and consumer behavior. This should have been absolutely predictable to anyone who was able to peer outside of Apple’s bubble. Executives have failed in their duty to warn investors ahead of time about all this, and reality is finally and all at once catching up to Apple… More at Time.

There is the expected panic from certain areas of the tech press who love to overblow things like this to get more traffic, but this also represents the early true evidence that the mobile industry is changing.

I cannot count the number of people I know who have owned their smartphones for more than two years, and especially iPhones, because they still work. I still use the iPhone X because the newer phones are so similar and it is working fine and so all I can do is throw some ideas out there as to why Apple is struggling-

The new iPhones are too expensive

The new iPhones offer little over the previous models

Trump’s trade war with China

The smartphone industry is unable to innovate at a level that spurs yearly upgrades – there are simply not enough obvious new features that make people run out and buy a new phone

Android is actually looking competitive in many areas and is running ahead in the ‘new feature’ sector

I don’t know what else, but I suspect the lack of profit will be made up for by AirPods, the Apple Watch and other products. Your thoughts?

Categories: Apple, iPhone, Tech News

4 replies

  1. My iPhone 6 is now 4yr 3mo old. Thanks to replacement battery and SW updates that make it run better than ANY of my Android devices more than 18 months old, this baby will hit 5, maybe 6 years old. I still have a real 3.5mm headphone jack.

  2. …and the reason is, I just never saw any compelling reason to get a newer model. I have the money but I just didn’t see a good reason. So I spent my upgrade money buying my mother a S3 Apple Watch. Then I bought one for myself. And a 10″ Galaxy Tab A with S pen. And lots of nice eBooks. All this was less than a new iPhone X-anything.

    • I wonder if that is part of the problem, the actual amount that Apple want for an iPhone is psychologically too much and lets us buy multiple things in place of it. £500 feels OK, but £1,000. Nope.

  3. Most tech gets cheaper as it develops. Apple’s seems to get more expensive or at a minimum stays the same. I’m still ticked at what Apple charges for a decent sized SSD. In fact, I even looked into how to virtualize macOS on a PC. That way I could use macOS for my day-to-day stuff and the PC for games. A lot cheaper than buying a new iMac.

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