It means Tim Cook and co. will likely be scratching their heads, wondering how to turn the Apple’s iPhone revenue has declined for another quarter according to the company’s latest earnings, and it means income is being dented.
It’s no surprise – a slow performance in China amid a worldwide slowdown in the smartphone market is making things incredibly challenging for Apple at a time when spending on a new handset is being considered more carefully than ever before.
People are holding onto their smartphones for longer because they’re still performing – they weren’t cheap when purchased a couple of years ago, and the high-end features then are still performing now.
tide. Could the answer be the much-rumored, fan-backed iPhone SE 2?
Apple has refused to step below the premium tier in the smartphone market to date, and while the iPhone XR is more affordable than the iPhone XS and iPhone XS Max, it still carries a hefty price tag which keeps it out of reach for many.
However, before you get all giddy about the prospect of a new mid-range and compact iPhone SE 2, realize it’s highly unlikely to ever happen. Apple has built its reputation on producing premium products, and it’s what gives consumers the confidence to buy as they know they’ll be getting a high-end device.
With rumors suggesting we won’t get a 5G iPhone until 2020 or 2021 at the earliest, there’s no short-term gain for Apple from the fifth generation network, but at least by the time a 5G iPhone does emerge the networks will be more mature and the services offered more robust, meaning the Cupertino brand is likely holding out until the improved connection offers some real, material benefits.
Whether the mix of trade-in upgrades, refurbs and a buffet of services will be able to recover Apple’s lost revenue remains to be seen, it’ll take a few years for the true impact of these models to be fully realized, but for now Apple fans should mourn the iPhone SE 2: the affordable, compact and modern iPhone that never was.