New iPhone: Economic Analysis / The double predicament faced by the new iPhone this year
A number of media reported yesterday that Apple ’s new iPhone will be delayed or even canceled this year. Bloomberg Information Technology columnist Tae Kim pointed out that this year ’s new iPhone suffered a sudden and serious new crown epidemic, both on production and demand. When problems arise, we face an unprecedented double predicament.
Kim pointed out that although Apple has repeatedly emphasized that the company’s strategic focus of operations shifts to services and subscriptions, Apple’s main motivation is still from hardware. The launch of the new iPhone on time and normal delivery is of utmost importance to Apple. In the latest quarter’s earnings report, the iPhone division accounted for 61% of Apple’s revenue, while services accounted for only 14%; and each phone sold represents a potential future purchaser of services.
Kim believes that this year’s new iPhone may not be able to avoid delaying the market. Because engineers ca n’t smoothly communicate with the suppliers and assembly plants in Asia directly about the production of the new mobile phone, especially this year ’s first upgrade of the new iPhone to a 5G mobile phone, which is very different from the previous new phone with some additional functions. Many complicated cooperations and tests, many of which cannot be carried out solely through videoconferencing. The domestic epidemic avoidance and travel restrictions imposed by countries with severe epidemics prevent these operations from being carried out face-to-face.
In addition to the production schedule, the market demand is not good. The uncertainty caused by the epidemic may cause consumers to postpone the purchase of new mobile phones, especially the latest iPhone mobile phones, which have always been regarded by the consumer market as relatively luxurious products. In recent years, the prolonged changeover time of iPhone users has been a major concern on Wall Street. Some analysts believe that the average changeover time can now be more than four years.
American mobile telecommunications carriers have seen the wind. Last week, AT & T said that since the most recent quarter, consumers with an “extra-low historical” rate have upgraded their phones; Verizon’s rate of upgrading their phones dropped by more than 40% in the four weeks ending on the 15th.
Kim ’s comment reads: “If your job may not be guaranteed, the last thing you should do is that the mobile phone in your hand works well and you spend $ 1,000 to buy a new machine.”
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