Big Theatre and new strategy
One of the fun things we get every year is the production values of Apple Events. Originally these were presentations with Steve Jobs. Back in time, whether it was iPod or the first iPhone, it was just a series of slides and commentary from the CEO.
Jobs also had the "one more thing" moment. In an almost casual way, he would announce a significant product. There are compilations of these on YouTube. Central to the last few years has been the announcement of the latest iPhone. It was, for a long time, reassuringly expensive. Not at all affordable. However, Apple is unlike Android in a good way. The software updates mean that old iPhones keep going and going. In 2022, Chris Evans, the actor who played Captain America, said on social media that his iPhone 6 had died. That is a seven year old device.
iPhone is difficult to repair, is security locked that creates vast amounts of ewaste, but it is long living.
This means that "cheap" Android devices are now outnumbered in the US market as iPhone goes past 50%. This is good for Apple in a mobile first world. Two decades ago, in a PC first world, more than 90% of PCs were running Windows and data transfer between feature phones and PCs was with cables. Today the PC is only part of an ecosystem where mobile devices are what many people use as their personal computer.
The Apple presentations are for consumers. Productions to wow the audience. Fast paced video and multiple presenters doing different segments. The products are now mature. Incremental change rather than revolution. Apple knows most people don't switch devices each year. Few must have features and more improvement over time.
There is now more than one iPhone. We talk about iPhone but there are several. Apple want to put a divide between the iPhone that most consumers buy and the pro models that are there for the professional creator, photographer, and videographer. In a mature market the strategy makes sense.
What makes sense for consumers is to buy refurbished models. With minor changes each year the value proposition changes. Buying a refurbished iPhone from last year saves a lot of cash. You can also "go pro", albeit last years' pro, at a discount. The Apple strategy is to make more money in a world that is buying fewer devices. This is defining the "pro" models. Savvy consumers will need to change behaviour to save money.
Post a Comment