Apple’s lull period theorized as Intentional


    In comparison to its predecessor, the new iPhone 7 is very similar with minimal changes. These changes could be found in the display, camera, storage, ports and slight changes in design. This is not customary to the usual Apple expectations, especially after the release of the iPhone “S”. Even though Apple has been experiencing a decrease in sales and users upgrading has been consistent; it is not anticipated to change with the release of the new iPhone 7.

    If rumours and anticipated changes to the new iPhone 7 are correct, not much can be expected from this device to be released later in this year. A trend analysis on Apple iPhone release trends indicates that in essence an all new iPhone device should have been expected for this year with an entirely new design. However, it is not the case and is considered as usual for Apple. This has analysts theorizing away as to the reasons behind these minimal changes found with the iPhone 7.

    In a report recently released by Cowen & Co., it is theorized that this may be an intentional avenue followed by Apple and within this report several reasons as to this intentional strategy are highlighted. Timothy Arcuri and his analyst team from Cowen and Co. are of the opinion that this quiet period experienced by Apple could be possibly be intentional and the new iPhone 7 may be a bridge year for a strategically planned super-cycle for 2017.

    Considering possible reasons as to this intentional strategy, Arcuri explains that this could be the result of several reasons. Firstly, a super-cycle may be strategized for 2017 and secondly, iPhone 7 sales could also exceed expectations due to its ageing base. Another aspect that should also be considered, behind this lull year, is the fact that iPhone will be celebrating their 10 year anniversary in 2017 and could possibly be planning towards an extravagant release specific to that.

    According to Arcuri, expectation for iPhone users to upgrade are assumed to stay at a consistent 33 percent and has not changed for six quarters. However, it is also expected that users upgrading will increase over the next five quarters. There might be sales decreases and a consistent percentage in users upgrading, but iPhone, being a leader in the industry, continues to be a favourite amongst consumers.

    Whether these theories and assumptions are correct and whether Apple is actually keeping the design overhaul for 2017, is yet to be determined. However it is not surprising that after minimal changes to the new iPhone 7 and Apple going against expectations of design renovation for this device, that assumptions and hopes are already high regarding the release of a new iPhone device in 2017.