Gone are the days when new releases of iPhones sold as fast as the manufacturer Apple could make them. The company is now entering a new phase that is characterized by a notable drop in demand of its latest models. Instead, more and more consumers are now opting to upgrade the software versions which offer more perks than the hardware. With this trend, it is now apparent that iPhone 7 sales, which has ploughed over $84.3 billion worth of revenues to date, could remain the highest recorded ever by the tech giant on any future release.
But why is this the case and when did the rain start beating Apple?
Some sections of analysts claim that nearly everyone who desired an iPhone for its features already got one when the 7’s were released. Consumers are now more interested in the quality of services and what different software versions are offering as opposed to the hardware features.
Faster updates for iPhone 5s or newer
In June last year, Apple announced a free software update to iOS 12 for iPhone 5s and newer models. At the time, iPhone 7 users were the majority and this only lessened their desire to buy newer models which also ran the same operating system.
For a while now, Apple has been losing the ecosystem advantage that it once enjoyed in top consumer nations. To be precise, Chinese customers using iPhones are increasingly abandoning native apps like iTunes and iCloud for alternate third-party apps. These and many other trends are becoming a headache for Apple which in the past had the fastest-growing market in the country and the wider Asia region. Indeed, this explains why the company has even lowered the cost of newer iPhone models by 3% in the hope that this will boost the hardware business.