The iPhone 7 will confront Apple with a risky strategy

The iPhone 7 will confront Apple with a risky strategy

During the last months we are witnessing a whole trickle of rumors and leaks about what the so-called iPhone 7 will be like.

Saving slight differences, everything points to a similar design and a set of minor internal and external improvements.Therefore, Apple would already be moving into a renewal cycle change of the iPhone that would go from two to three years. Right now, at a time when sales are down for the first time in more than a decade.

iPhone 7, a risky strategy

Sales of the iPhone, iPad and Mac have slowed, and this logically affects Apple's profitability. It's without doubt that the company is obliged to launch new products ASAP, this fall, if you want to reverse a worrisome downtrend. You especially need a new iPhone, since current iPhone 6s and 6s Plus sales have been disappointing Not only with respect to the expectations, but also because sales have been reduced for the first time in more than ten years.

Wall Street analysts, who probably don't know as much about technology as Apple but are ultimately the ones pulling the strings based on a strange combination of certainties and speculations, have reached a consensus about what iPhone 7 should include so that the company will at least "save the furniture" and recognize the trend.

Apple takes the challenge: two to three

What also seems to be a consensus both among analysts and among many of us mere mortals is that With the iPhone 7, Apple is taking a huge risk with the strategy set precisely for this year when things are not going so well.

According to a note issued by the Deutsch Bank (yes, here you already think until El Tato), iPhone 7 will have a few enhancements but will ultimately look a lot like today's iPhones.

Case of the supposed iPhone 7 according to the website nowherelse.fr

Case of the supposed iPhone 7 according to the website nowherelse.fr

Cycle change

In essence, they point out from Business Insider, Apple is already moving to a three-year update cycle. Until now, the company released a new model every two years. And by this we mean new models that present changes and improvements both internally and externally. Thus, between major renovations or "years of rest" as described by BI, Apple used the same hardware and updated some of the components, all seasoned with a new annual operating system that introduced improvements and some new functions.

However, 2016 will be the third year that the iPhone sports the same design which was already introduced in 2014. And this could negatively affect sales, as some surveys already reflect. Only between 9 and 10 out of 100 users would be considering renewing their device for the iPhone 7, if it has a similar design.

Tech Insider's Steve Kovach personally notes that while he renews his iPhone every two years, this time he's considering skipping over to iPhone 7, something many users already think.

As we said, Apple is directing the transition of iPhone renewal cycles by stretching it from two to three years. In fact, last April and on the occasion of Earth Day, Apple confirmed that estimates a useful life of three years for iPhones.

The direct consequence

The direct and logical consequence of this cycle change would be that people would buy less iPhone. It is even speculated that Apple could produce fewer units of the iPhone 7 this fall as it expects demand to be softer. Despite this, Deutsch Bank indicates that the iPhone 7 could end up selling better than the iPhone 6S. Which would probably be thanks to older device owners.

What news are expected in the iPhone 7?

Based on its "contacts" with Apple's supply chain, Deutsche Bank analysts expect iPhone 7 to include:

  • A "Plus" model with a double camera, better zoom and 3 GB of RAM.
  • A standard model with an improved camera and optical image stabilization.
  • Better sound, possibly stereo.
  • Waterproof.
  • A home button that uses motors to simulate a click and would have a longer life than the current one.
  • A new color (black, or perhaps dark blue, according to rumors) so there would be a version of iPhone 7 different from the current models.
  • The removal of the 3,5mm headphone jack.
  • An adapter that allows you to connect the EarPods to the Lightning connector (no bluetooth headphones or headphones with a Lightning connector).

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