Every year, Apple holds an event revealing
the next generation of iPhones. But have you ever wondered why they stick to such
a consistent release schedule compared to other products like the iPad or MacBook?
Well that’s what I’ll explain right now. So back when the iPhone was first announced
in 2007, the iPod was Apple’s highest-selling product. But that quickly changed when iPhone
took the top spot in 2010. And this shift was important, since a company tends to focus most of
their resources on their most profitable products. Prior to the iPhone, the iPod received annual
upgrades. But as its sales were eclipsed by the iPhone, it was upgraded less frequently.
With most models eventually being discontinued. Annual iPhone releases ensures customers have the
opportunity to upgrade their devices are often as possible, and maximize the company’s annual
profit. In recent years, Apple has made upgrading more affordable by introducing initiatives
like their trade-in program. Giving customers a discount on a new iPhone when trading in their
old model. And their iPhone upgrade program. Giving customers access to the latest iPhone model
by paying a flat monthly rate throughout the year.
This is in contrast to the carrier subsidy
approach in the early days of iPhone. In order to make the device more affordable, carriers
would pay a portion of the iPhone’s upfront cost to attract new users to their network.
But the deal required a two year-contract. Which meant users wouldn’t be able to
buy the latest iPhone on an annual basis. And this could be part of the reason why Apple
used to release major iPhone updates every two years. With an incremental S model in-between.
But recently Apple has broke from that pattern. Making more significant upgrades every year with
the iPhone 11, 12 and 13. Likely to further entice existing users to upgrade, especially now that
two-year contracts are a thing of the past. But if you think Apple releasing
new iPhones every year is excessive, you may want to consider their competition.
Companies like Samsung and Huawei continuously release new phones throughout the year.
Which not only helps boost their sales, but puts pressure on Apple to keep
up with the latest Android offerings.
This is Greg with Apple Explained,
thanks for watching till the end, and I’ll see you in the next video..
