“The strategy is, dare I say, bordering on over-confidence,” Ben Thompson writes for Stratechery. “Apple is raising prices on its best product even as that product’s relative differentiation from the company’s next best model is the smallest it has ever been.”
“Here, though, I thought the keynote’s Mission: Impossible-themed opening really hit the mark: the reason why franchises rule Hollywood is their dependability,” Thompson writes. “Sure, they cost a fortune to make and to market, but they are known quantities that sell all over the world — $735 million-to-date for the latest Tom Cruise thriller, to take a pertinent example.”
“That is the iPhone: it is a franchise, the closest thing to a hardware annuity stream tech has ever seen,” Thompson writes. “Some people buy an iPhone every year; some are on a two-year cycle; others wait for screens to crack, batteries to die, or apps to slow. Nearly all, though, buy another iPhone, making the purpose of yesterday’s keynote less an exercise in selling a device and more a matter of informing self-selected segments which device they will ultimately buy, and for what price.”
Much more in the full article – recommended – here.
MacDailyNews Take: This franchise has legs the likes of which we haven’t seen since Brigitte Bardot.
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[Attribution: Daring Fireball. Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]