2017 marks the 10th birthday of the iPhone and the release of the Apple’s latest innovation for smartphones, the iPhone X. In recent years, Apple has faced major criticism for its business model which often relies on a singular product, to be renovated and reinvented yearly, as their main source of income. In 2016, only 37% of revenue was generated from non-iPhone products. However, before the iPhone, Apple’s first cash cow, the iPod, served a similar role in driving up Apple’s sales. The iPod’s cultural and monetary impact on Apple allowed it to reign as Apple’s most beloved product only to be replaced by the savvier iPhone.
The iPhone took Apple’s sales and status to new heights; between 2005 to 2015, Apple’s net income grew from 1 billion to 53 billion largely due to the success of iPhone sales. However, this reliance on a singular product leaves Apple vulnerable year-after-year to challenges by competitors and ever-changing consumer trends. With less-than-stellar sales and growth in the 2016, Apple faced negative press from eager business writers and industry insiders who were ready to see the brand dethroned.
However, despite facing constant criticism from tech insiders to business leaders, Apple’s brand has reached in and grabbed onto the American market and continues to captivate its audience while dominating in smartphone sales. The story of Apple and its most famous founder, Steve Jobs, has enthralled American sensibilities of hard work, and undoubtedly, offered an updated version of the American Dream. Embodying the spirit of its origin, Apple continues to sell its iPhone as the definition of innovation and ingenuity wrapped in a sense of luxury to its American audience.
With the announcement of the iPhone X, Apple has once again managed to capture the imaginations and wallets of consumers. While the price of iPhones leave consumers in shock, its American base remains loyal and willing to upgrade their iPhones as needed.
Do you think the iPhone X is a game-changer and will prompt another surge in Apple’s growth or another gimmick that will lead to a major flop?
