Why Apple HAS TO Release a New iPhone Every Year

by birtanpublished on January 13, 2021

Yeah look I'm sure we've talked about this before because every once in a while we hear some leaks and rumors about how the next generation iPhones are either gonna be super interesting or not that interesting or overall Apple is gonna run out of things to add every year and it comes up a lot in the comments and on Twitter and and twitch streams that people think Apple should start releasing a new iPhone maybe every other year and you know skip one just so that the upgrades can feel more substantial I'm here to tell you why that's not going to happen and what Apple's master plan is for these boring

IPhone upgrades that are coming because iPhone 12 line up yeah I agree that's pretty excited you got new form factors OLED is a standard new way fourteen chip new cameras it's like there's a bunch of upgrades this year but 2021 sounds like oh the charge port is gone yay so how are they gonna deal with that the trick is services let's begin so the primary reason Apple would have a very very hard time pushing to an every other year iPhone release cycle is iPhone upgrade program because they've already kind of committed with this subscription service that does pretty well by the way that

You will get a new iPhone every single year and all you have to do to qualify for a new iPhone upgrade is make 12 payments on your current iPhone and then when the new one comes out you trade in your old one a lot of people are actually moving towards this service and there's a reason for it in fact I actually think Apple is going to continue to incentivize the iPhone upgrade program because they want people getting locked into that subscription method because we talked about this on tailless of talk sometimes when it comes to our finance videos but selling

Someone on a subscription has a lot more long-term benefits for the business than selling someone on a one-time purchase because for someone who's deciding whether or not they want to upgrade their iPhone you have to convince them once you just got to convince them hey this $1,000 is $700 or however you decide to finance your iPhone that's going to be worth it in the long run because you're gonna buy it and enjoy it on a monthly basis but the subscription model has to get you comfortable with the idea of well it only takes out you know 40 bucks a month or 50 bucks a

Month so as long as you have that amount of money in your budget you get to just enjoy the new iPhone every year and you don't really think about can I afford the new iPhone you just start thinking that's my phone bill in order to have the iPhone I like which is the latest one and in order to have the latest hardware I just have to keep paying this monthly cost which is pretty obtainable for most people and getting someone to cancel a subscription has proven to be a lot more hard than getting someone to not buy full-price latest iPhones so because Apple is now promising people

The iPhone upgrade program and saying hey you'll get the new iPhone every single year that whole subscription service I feel like would get thrown out the door and a whole lot of the practicality of it wouldn't work if suddenly Apple decided to upgrade the iPhone every other year because it would have to accommodate for the fact that yeah you're financing this iPhone now but you're gonna have to pay for it outright 24 months later in order for you to get the even later generation iPhone and yes iPhone upgrades over the next few years are going to get smaller

And smaller and more incremental absolutely there'll be a slight refresh rate jump here slight camera improvement here and it's going to get harder and harder to justify upgrading your iPhone but if you're locked in to the subscription model and more and more people are going with the iPhone upgrade program which includes Apple Care so Apple is already kind of incentivizing people to go with the monthly cost eventually Apple is hoping you will no longer be thinking do I get the new iPhone you'll just be thinking when is that new iPhone coming out and as long

As I've got you know the 50 bucks a month in my budget I'm definitely gonna be getting it as minor as it may be and that's the ultimate trick here is getting people comfortable with the idea of paying a monthly cost for the hardware and that way you don't have to convince them to get the latest hardware that's just in their mindset that oh yeah new iPhone comes out of course I'm getting that even the iPhone upgrade program so my guess is that into the future as we get more incremental upgrades Apple is gonna start adding some more perks to the iPhone upgrade

Program maybe they're gonna throw in Apple music or Apple TV plus or Apple arcade because they're so proud of these services and technically this monthly subscription option is going to keep people tethered and paying on a monthly basis and Apple gets that consistent revenue over time that's why there's no interest on the iPhone upgrade program they just want you locked into the idea that you're getting the new iPhone every year and there's no question about it it's also important to remember that a lot of the time us and the tech community get fed up with year-over-year

Iphone upgrades and being that big like imagine if the ten are and the 10s max didn't come out right it was just the iPhone 10 and in the following year the 10s came out it would be incredibly minor and a lot of people would be upset by that but the truth is not everyone bought the iPhone 10 and there would still be a ton of people on the iPhone 7 or 6 or earlier that now see the 10s as the latest one and it's got you know some improvements over the 10 so people who are heading out to the Apple Store or checking the website yeah they're gonna get the

Latest version so even incremental upgrade zero over a year do make a bit of sense for the people who are not upgrading to the latest iPhone every single year but as is more and more common people upgrading every three years or every four years just want to buy the latest generation tech and even if it does have a small tiny upgrade over the previous year people will still buy that because it's the latest generation stuff so what I essentially mean is upgrading from the iPhone 11 pro to the iPhone 12 Pro might be pretty noticeable and substantial but there

Will be a lot of people who are not buying the twelve or twelve Pro and once they're comfortable to upgrade their iPhone again and maybe the 12s or whatever Apple decides to call it comes out they might as well get whatever tiny upgrades the 12s offers just so they have longevity and don't have to worry about having your old hardware so they just buy the latest generation stuff that can and honestly with so many Android companies that are releasing phones every six months and I think that's a bad move I'll talk more about that in my one plus eight review because

This phone is fine but at the same time it's so redundant in the oneplus lineup I think Apple is very very safe sticking with the annual release cycle just new iPhones coming out in September there were some rumors a while back about Apple releasing budget iPhones in the spring and then premium iPhones in the fall I don't think they should do that I think they should stick with their regular September schedule and more than likely yes get people comfortable with the idea of paying for your iPhone via the upgrade program that way it's not a question of course you're getting the

Latest iPhone and because iPhones are such a gigantic chunk of their annual revenue they can't really just cut that in half and say you know what since the 12s isn't that interesting we're just not gonna release an iPhone this year I think financially that would not be good for their shareholders that would not be good for their revenue or their budget to just take one of their largest sources of revenue and cut it in half even if you think well maybe more people would upgrade if it was more substantial every other year that could be the case but still in the short term

It would drastically hurt their revenue that's why I don't think they're gonna do it and I absolutely could be wrong I've been known for that in the past feel free to hit me up over on Twitter join my discord if you have different theories about when it makes sense for Apple to upgrade their iPhones and if you're subscribed to this channel make sure you absolutely unsubscribe because it's not worth your time and it's wasteful this is your app sleep here and I'll see you in the next one

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