More on Apple Device Longevity, iPhone Upgrading, Measuring Apple HW vs. Services Growth Potential
Given where we finished last week, there are a few follow-up discussions worth pursuing. We talk about how Apple devices are lasting longer. The discussion then turns to iPhone upgrading and the difference between iPhone average lifespan and upgrade cycle. We conclude with a look at where Apple’s growth potential is found (HW vs. Services).
Hello everyone. Welcome to July. Let's jump into today's update.
More on Apple Device Longevity
Last Thursday’s update was focused on the ramifications associated with Apple having industry-leading device longevity (improving secondhand value, longer product lifespans, and declining service rates). We also looked at some new clues for calculating the average iPhone upgrade cycle length (5 to 5.5 years when taking into account iPhones in the gray market).
One question that we did not address: How are Apple devices lasting longer?
There are three primary answers:
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Apple Talks up Device Longevity, Apple Provides New Clues for Estimating iPhone Upgrade Cycle, Google and Samsung Announce Product Events
Today’s discussion will begin with a new document that Apple published regarding device longevity. This will then bring us to the iPhone upgrade cycle. We conclude with somewhat lighter fare pertaining to tech product launches.
Hello everyone. This week flew by. Let’s jump right in.
Apple Talks up Device Longevity
Earlier this week, Apple released a document titled “Longevity, by Design,” outlining its philosophy on device longevity and its connection to device durability and repairability.
Here’s Apple:
“At Apple, we are always working to create the best experience for our customers, which is why we design products that last. Designing for longevity is a company-wide effort, informing our earliest decisions long before the first prototype is built and guided by historical customer-use data and predictions on future usage. It requires striking a balance between durability and repairability while not compromising on safety, security, and privacy.”
The 23-page document contained several interesting data nuggets and tidbits. For example, according to Apple, 85% of the US population is within a 30-minute drive of an Apple Store, Apple Authorized Service Provider (AASP) location, or Independent Repair Provider (IRP). For those in the United Kingdom, the percentage is 82% with a high 89% for Italy and Germany. There were also a few handy exhibits, such as the one below:
According to Apple, they are an industry-leader when it comes to device longevity due to three factors:
An Above Avalon membership is required to continue reading this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Choose either a monthly or annual membership. Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time. Contact me with any questions.
Contact me directly if you would like to purchase multiple subscriptions (five or more) for your team or company.
An audio version of the newsletter is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-ons.