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Apple unveiled three new products last week, including the Apple Watch 4, the iPhone XS series (which includes the Max model) and the iPhone XR. The Apple Watch 4 and the iPhone XR easily stole the show with a special focus on the new portable device from Cupertino Laboratories. The event also brought us the biggest and most expensive iPhone of all time, a device that costs $ 1,449 before taxes and could cost well over $ 2,000 in other markets – that's the iPhone XS Max 512 GB. But Apple also told us that it did not expect everyone to upgrade the iPhones every year, and we all missed it.
An old conspiracy theory says that Apple intentionally slows down its devices to force buyers to switch to the latest novelty. The ultimate proof came late last year when the world learned the practice of slowing down the iPhone related to Apple's battery. Apple has spent a lot of time apologizing and denying the practice of "planned obsolescence". Last week, the iPhone event accelerated and Apple has just given us the ultimate proof that it wants iPhones to be used as long as possible.
When Lisa Jackson came on stage during the Apple segment to talk about Apple's environmental progress, she also said something that many people did not know or had just dismissed as a marketing argument. obvious. She said that Apple wants its products to last as long as possible.
But as Horace Dediu has observed, it's no longer as important for Apple to sell you a new iPhone every year, but to build loyalty as a customer for years to come.
The important appeal to take is that Apple is making a bet that sustainability is a growth business.
Basically, Apple is betting on the fact that its customers do not sell products.
Apple's goal is to create and preserve customers and to create and maintain products. This is fundamental and not entirely recognized.
This is something that most of Apple's competitors can not really compete with.
Whether the user keeps his device a few more years or that he passes it on to a member of his family or sells it, Apple continues to win. This is because the iPhone opens the door to other purchases, whether other Apple devices or the content of various digital stores Apple. The more a user is exposed to the iPhone, the more Apple earns money. And if a device has multiple owners during its lifetime, Apple ends up exposing more people to iOS, the App Store and its hardware, without having to worry about the smartphone market share or the price from the iPhone.
The buyer also wins, because the iPhone is not more durable, but also more useful – the same Dediu:
An iPhone at $ 1,200 can be cheaper than an iPhone at $ 600 if the $ 1,200 version lasts twice as long as if it were used twice as much each day. The $ 1,200 phone provides 4 times the service at a price twice as high, which is half the price. By producing more durable products, both in terms of hardware and software, customers are satisfied and preserved.
Let 's not forget that Apple has just announced that it has sold 2 billion iOS, of which 1.3 billion are still in use. And Apple sells more than 200 million iPhone every year. This means that Apple would still get many buyers for new devices each year, without actively seeking to convince anyone to improve their iPhone after only one year of use. Obviously, Apple has an iPhone upgrade program that lets you upgrade every year. So, if you update your iPhone every year, Apple makes you a lot of money. However, not all buyers need or have access to the iPhone Upgrade Program worldwide.
Finally, even if you do not get one of the latest iPhones and you choose the new iPhone cheaper Apple right now, it would be an iPhone 7. receive updates for a few years to come. And all the above always apply. That the iPhone 7 is good for a few years, whether you keep it or spend it after a year of use.
It turns out that not only do I agree with Dediu, but I somewhat respect the iPhone client model he describes. I already told you that I was not going to upgrade the iPhone X to any of the new 2018 models, even though the iPhone XR's call is currently very attractive. This is because the original X is still a very solid device, both in terms of durability and performance. Once I'm done with it next fall, I will pass it on to someone from my family, as I did with previous iPhones, knowing that it will continue to serve someone else for at least two years. . The only thing you will probably need is a battery replacement.
Image Source: Apple Screen Capture Event
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