“When Apple lost more than $75 billion in market value this past week after a surprise announcement that it is expecting lower iPhone sales than originally projected, the company put most of the blame for its troubles on China, where a slowing economy and the trade war with the United States have hurt sales,” Kevin Roose writes for The New York Times. “But a bigger issue for Apple might exist much closer to home, in a small, leafy town in Ohio.”
“That’s where my mom lives. She’s a relatively tech-savvy retiree and a longtime Apple fan who has used many of the company’s products over the years. I learned to type on an Apple IIGS at her office, and she was an early adopter of the original turquoise iMac,” Roose writes. “Her phone isn’t the latest model — it’s a three-year-old iPhone 6S — and it’s missing some of the latest features… But she’s happy with it, and doesn’t feel the need to upgrade.”
“But for my mom, and the many people who are probably in her situation, the company’s slowing iPhone sales aren’t at all a disaster. In fact, they make total sense, and they don’t have much to do with China,” Roose writes. “The most consequential hit to Apple’s bottom line may be from people who are holding on to their phones for longer.”
Read more in the full article here.
MacDailyNews Take: Yes, the iPhone replacement cycle is lengthening, but with so many iPhone (and iPad) users and with customer satisfaction so high, it really doesn’t matter. The market is mature and there are only so many quality users on the planet. Apple has that market cornered. The types of people who’ve settled for Android aren’t likely to buy as many apps or subscribe to services. They want free. They’re not worth much after the sale. The iPhone knockoff peddlers like Samsung can have them.
This is, of course, Apple’s point with ceasing the reporting of unit sales. It’s the user base, the quality of the user base, and services that matter more now. That’s where the growth is and where it will be for many, many years to come.