The use of advanced chipsets, newer LTPO displays, and a transition from stainless steel to titanium alloy on the iPhone 15 Pro and iPhone 15 Pro Max are just a few ways that Apple has attempted to differentiate its newest smartphone lineup from the one it launched the year before. Unfortunately, one cannot deny that, for the most part, the overall design does not look all that different from the models that launched two to three years ago, suggesting that innovation has likely slowed from the company.
These reasons are why consumers have little encouragement to pick up the latest and greatest hardware, and they would instead hold onto their cash in an economy where their expenses have shot through the roof. Likely recognizing this change in spending behavior, Apple is reportedly working on making its devices more durable than ever before by using a combination of improved technologies, software updates, and upgraded repair services. Now, one may assume that if the product’s durability is increased further, it will warrant fewer upgrades. Well, that is all a part of Apple’s grand plan.
Customers are keeping their devices for much longer than before, giving Apple an opportunity to increase its goodwill
While some consumers have the propensity and the available budget to upgrade to Apple’s newer devices every 12 months, the majority of them do not even think about another purchase for several years. According to Mark Gurman’s latest ‘Power On’ newsletter, Apple has a few steps in place to ensure that its devices last for as long as possible, as this move will cause more consumers to invest in these products if they are aware of their significantly longer lifespan. Customers who were not willing to splurge a premium on the Cupertino giant’s hardware will likely now have second thoughts about the undertaking.
“Apple is now pushing to make its devices as durable as possible. It just put out a report on the longevity of its products, saying that new manufacturing technologies, software support and repair services are helping prolong their life. Devices from as far back as 2017 can still run Apple’s current operating systems, the company said.
That’s not a bad thing, of course. The promise of longevity encourages people to invest in the company’s devices and counters the critics who say Apple engages in planned obsolescence.
But the broader trend has left Apple with a less reliable growth engine — something that’s evident in its finances lately. Sales have declined in five of the past six quarters, and it’s critical that the company finds new sources of revenue.”
However, while this move can ensure that more people are willing to spend a higher sum to obtain an Apple product, it leaves the technology titan with a less reliable growth engine. Fortunately, the company’s ‘Services’ division continues to push forward, and during the Q2 2024 earnings call, this category attained a new record. Some analysts have given Services a valuation of between $1.5 trillion and $1.6 trillion by the end of 2024, indicating that if customers are not keen on upgrading often, there are other ways to bring in a healthy revenue stream.
This would also explain why Apple continues to engage itself in court battles over its App Store, as it recognizes the importance this platform has for its future growth. It is also possible that Apple Intelligence will become a growth factor for the latest iPhones, and Apple could charge individuals if they want access to the more advanced features. Sadly, we cannot comment on the company’s generative AI push until we see what the product actually offers, but one cannot ignore the potential it presents.
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