5 Reasons the iPhone is Dying

by | Apple

5 Reasons the iPhone is Dying

The iPhone is dying. The Samsung Galaxy is dying. LG is Dying. The mobile phone market is struggling with innovation these days. I get it! Innovation is hard. When was the last time we saw REAL change in the automotive industry? The minivan and sport utility market changed transportation slightly, but cars still have 4 wheels and an engine (gas, electric or hybrid). Consumers demand drastic changes and growth in the smart phone market without them blowing up (Thank you Galaxy Note).

Consumers are merciless. We want hyper-innovation two times a year (iPhone 6 Plus and iPhone 6S Plus). No other industry exerts this level of improvement on the manufacturer. What if Ford was challenged with releasing 2 new models of Explorer twice a year – with each subsequent model making the driver desire it more. Jony Ive saying (in a British accent), “This is the best Explorer we’ve ever made. It is milled entirely from a rare element only found in a small village in Tibet.” Apple and Samsung’s biggest challenge is they can’t slow down. They MUST meet consumer demands or lose valuable market share. The iPhone is dying, and we are killing it. How has Apple responded?

The iPhone is Dying…of Apps

  • Services – Apple Services (i.e. – iTunes, Apple Pay, AppleCare and iCloud) generated $24 billion in 2016. In addition to the iPhone, Apple is promoting it’s Apple Music streaming service and new ways to pay for merchandise (Apple Pay). These services are an integral part of iPhone ownership. Apple recently released Clips, a new way of managing videos and sharing content. The iPhone is dying, but services are keeping it alive.
  • Revenue – Apple generated $52.9 billion LAST QUARTER…and the stock fell. They can’t keep up this level financial growth! Apple’s solution? Make more iPhones! MTV used to show music videos, and Apple used to make kick-ass computers. Phones are cheaper than cars, and they are seen as a must have, not a luxury item. The iPhone is the portal to everything you want to do and everyone you want to see. The iPhone is dying, and the solution is keep making more.
  • iPhone – “We have the enemy, and he is us” (Pogo cartoon). The iPhone is the iPhone’s biggest competition. Apple keeps making great phones with great cameras. More consumers are asking themselves, “Why do I need to upgrade?” Good question. If the next iPhone goes OLED (vs. LED in the iPhone), will you be able to tell the difference? Apple’s biggest challenge is to convince us every year that their previous iPhone was crap, and we need to pay another $800.

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  • Innovation – What’s next? My clients always want to know what’s next in the mobile technology market. It’s AI (artificial intelligence). It’s AR (augmented reality). The next big thing is everything video and photo related. Why? It easily ties into social media. Thinner, lighter and faster is not good enough. Removing a headphone jack is not innovation. Apple needs to give us something BIG. The iPhone is dying, and we want drastic changes.
  • Competition – Samsung kicks butt! I used to hate the cheap plastic knock offs that stole Apple’s design and user interface. However, the screen quality is awesome, and it takes great pictures in low light. LG, HTC and Huwei are making cool phones at a cheaper price point. All of the iPhone competitors run the Android operating system.

I love my iPhone 7 Plus, and I will be buying the next model. However, the iPhone has been out for 10 years, and it faces innovation challenges it did not in 2007. Apple, Samsung, Microsoft and Google are pressured to imagine, innovate and improve at speeds far exceeding Moore’s Law. The iPhone is dying, and only Apple can save it.

Scientifically Speaking, of course…