Sunday, October 25, 2015

Is Tim Cook Right About the Level of Innovation in Apple Inc.'s iPhone 6s?

The improvement leaps Apple made from 6 and 6 plus to 6s and 6s plus were greater than the leaps from 5s to 6 and 6 plus, such as faster processors, quicker wifi connections, better camera resolution on both sides, among a few of the improvements. Overall, the design and look of the phone didn't really change. It is being talked about that Apple may move away from using LCD touch screens, that are used on all smartphones, not just Apple phones, and being incorporating AMOLED displays for the 2017 iPhone.

Apple has been coming out with a newer version of the iPhone about every two years, but because of the increasing pressure from their competitor, Android, Apple has almost doubled what they were originally spending on research and development. They may soon start releasing new models every year, and making them so that the older models become obsolete in order to keep market share. My biggest question about this strategy is that wouldn't doing all this every year, give incentive to customers to switch to Android, or any other phone for that matter, in order to keep costs low? Apple products are only compatible with other Apple products. If they remake new phones and items that go with only these phones, owning anything Apple is going to become more expensive than it already is. I can see this as providing incentives to consumers to switch to brands that are compatible with more than just their own products, and from different technology generations.

Link: http://www.fool.com/investing/general/2015/10/25/is-tim-cook-right-about-the-level-of-innovation-in.aspx

3 comments:

Anonymous said...

The thing that works with Apple products, that would cause me to probably never switch over, is the compatibility with other Apple devices (laptop, watch, etc.) and that they are really easy to understand and use. Apple's R&D may be increasing, but how do they know that what they are researching will ultimately benefit their company? It is the same thing with advertising; companies do not know to the extent to what advertising will benefit their company. Apple has not had a problem innovating, and I don't foresee them not being a majority in the phone market in the near future.

Unknown said...

Apple does come out with a new iPhone every year, I know because I always buy the latest one and it always falls on the September then next year after the last. I used to just take whatever update one of my family members had so I didn't have to pay the full price, just the standard 2 year update fee for my network contract. Phone companies have caught on to this though, so last year when the new iPhone came out Verizon developed an offer of turning in your old iPhone and get money for it, plus get the newest iPhone but only pay half, pay the other each month over the next year. I liked this plan a lot, it gave consumers a huge incentive to go into their Verizon store and buy the new iPhone. Though they discontinued the offer, I think if they rebooted it, apple could be even more profitable (as if that were the issue) and even less people would want a competitor's phone.

Unknown said...

I agree with Joey, I think that the compatibility of iPhones with other products is very beneficial and will keep customers coming back. I don't believe that such frequent updates are necessary, it sounds like a lot of pressure on the company. Apple has established a very dedicated customer base and I don't believe that will change any time soon.