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Apple’s iPhone Business Is Going To Be Dead In The Water

January 16, 2013

They say that demand for “incremental” hardware improvements is “waning.” Essentially, they don’t believe people will continue to upgrade to a new iPhone. If the market for newiPhone buyers is already maxed-out, and the market for upgrading iPhones is weak, then Apple’s iPhone business is going to struggle.

So the hardware difference between the Galaxy S II and the Galaxy S III was not incremental? Or the Lumia 900 to the 920? Or any other phone iteration in the last 5 years? This is what happens. A company has a major re-invention then iterates on it for the next few years. Hardware alone is not what persuades a person to buy an iPhone or an Android device. It’s the software and accompanying services and ecosystem. It is true that the general consensus it that Google is getting better with their software and ecosystem but this is 5 years after the original iPhone and I would be willing to bet we are going to see a big re-work of iOS soon. An updated iOS will cause these “Analysts” to write pieces about how they knew Apple’s stock was underpriced and what a great deal it is and how revolutionary Apple is.

More to the point of Apple’s iPhone sales numbers, the iPhone is still the single most popular phone accounting for 82% of AT&T’s smartphone sales and 53% overall for sales in the US as of November. Clearly there is still a demand from existing users and from people switching from another platform.

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