Taking a look back at another week of news and headlines from Cupertino, this week’s Apple Loop includes the demand for cheaper and older iPhones, why Apple is struggling to include 5G, the return of TouchID, concept images of a folding iPhone, the latest iPad and iPad mini leaks, and why The Rolling Stones are teaching a new wave of musicians on the iPhone.
Apple Loop is here to remind you of a few of the very many discussions that have happened around Apple over the last seven days (and you can read my weekly digest of Android news here on Forbes).
Consumers Turning Away From Expensive iPhones
Apple’s current generation of handsets are priced at premium levels and they have not been well received. While there are other circumstances, the broad sweep of selling more phones at a higher price has not been a successful strategy. Apple’s COO Jeff Williams acknowledged that the company is aware of issues around the high price of the latest iPhones this week and while he didn’t offer any salve to consumers wallets, the issue has now been publicly acknowledged, reports Killian Bell:
“It’s something we’re very aware of,” Williams said during a question and answer session at Elon University on February 22. “We do not want to be an elitist company … We want to be an egalitarian company, and we’ve got a lot of work going on in developing markets.”
Of course Apple’s latest handsets are the pricey ones, consumers have other options and the share of those handsets is growing. That’s reflected in the news that analysts are raising their unit sales expectations for the second quarter, but only on the strength of more sales of the older and cheaper iPhones:
While this is good news in regards to higher than projected sales, the breakdown of which units are popular with customers is going to make for uncomfortable reading. The new iPhone XS, XS Max, and XR handsets are expected to be shunned for the older and cheaper models – namely the iPhone 7 and iPhone 8 families.
…That’s going to lower Apple’s average selling price per handset, and limit the use of ‘gee-whizz’ technologies such as FaceID which are not present on the older models. And while iOS does offer support to older devices, there’s nothing the software can do to replicate newer technology that can pull the platform forwards and match up to the latest offerings from Android-focused manufacturers