Thursday, February 9, 2017

Do not we need the latest iPhone model?


We already know that Apple is the largest and most profitable brand in the world and, although some of its flagship products  see reduced revenues , it continues to hold a preponderant position in the market. But the Cupertino company is still looking for an elusive Next Big Thing , and this adds up to a trend that could become a problem : increasing sales in the product range below $ 500.

"I'll stick with the 6s"

This, obviating the impact of the experiments with intermediate ranges, means that more and more buyers opt for a model prior to the "flagship" brand. This is the case of the change of proportions in the distribution of the iPhone 6s compared to the iPhone 7: a difference of just over $ 100 in the price has become a decisive element in choosing the previous model, while Before, nor did it intend to renounce the latter by a margin that barely implied a 15-20% increase in the value of the product.
Barclays' Apple analyst team commented in this regard that if this trend continues, there is a risk that Apple's product cycle will change. They believe that the mix of different generations of products shows that buyers are increasingly comfortable with the technology of last year , which  can hurt the output of the iPhone 8  if the trend continues in the design of products. IDC data support this analysis: iPhone sales below $ 500 exceeded 20% during the last two quarters of last year, a level not seen since early 2011.

Changes in the ecosystem of users

In the short term, this increase in the purchase of cheaper terminals will negatively affect their profit margins. In the long run, you can make Apple lose another asset: lose weight in the niche of the premium user profile . The user profile directly affects the usage patterns that are related to the new forms of monetization of the services. An example is found in the large online gambling halls, businesses that until now saw how it was easier to monetize their investment in development and licensing working on the platform of the Cupertino. The indirect consequence is that this type of business  gives more prominence to Apple devices in their ads for mobile apps , which in turn, results in a visibility at no cost to the apple company. The loss of this added value of the product could also take its toll on the brand.

Will they be able to surprise us again?

It is true that the iPhone can boast of being one of the best consumer products of the past generation (Time Magazine chose it as  the most important technological device of all time ). Few technological devices have done more to redesign our day to day ; Pretending that Apple appears with another product capable of generating a similar impact seems almost impossible. However, it is not many months since CEO Tim Cook responded to a question about his long-term plans for "trust in developing projects," although they do not often talk about what the future of their products.
Beyond the rumors about the next iPhone, the evolution of Apple Watch and the future Apple Car, there is still room for visionary innovation of a company capable of surprising us with the next gadget  essential for our lives.
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