Selling Non-Pro iPhones, Revisiting iPhone Repairability, Less Frequent Upgrading Can Help Apple's User Monetization (Daily Update)

Hello everyone. Welcome to a new week. In today's update, we will cover a few topics related to the iPhone. The discussion begins with Apple’s strategy for selling non-pro iPhones. This leads us to revisiting the subject of iPhone repairability. We go over three primary implications of improved iPhone repairability. The discussion ends with an example of how Apple can turn less frequent device upgrading into improved user monetization over time. Let's jump right in.


Selling Non-Pro iPhones

Over at The Sydney Morning Herald, here is Tim Biggs:

“The latest line-up of iPhones has arguably the biggest gap ever between the standard models and the Pros. The phones have different displays, different features, different cameras and different processors.

If you ask Apple, it will say the two categories are designed with two different consumers in mind, each model having its own strengths. And if you take a look inside, you’ll see that the standard phone can’t simply be written off as a stripped-down Pro or a repackaged model from last year…

It can be hard to tell just from looking at the specs and exteriors where each ‘standard’ iPhone model sits in a hierarchy amid previous models and Pros, new and old. With Pros, it’s easy to assume they’re the biggest and best iPhones at the time of release, but with the standards there’s always an implicit question of what sacrifices are made to get to the lower price.

Richard Dinh, Apple’s longtime senior director of iPhone design, said the company didn’t really think of it like that.

‘We don’t always follow a recipe, as much as maybe our customers would like to predict what we’re going to go do next, but it always starts with the customer experience,’ he said, noting that a standard phone might have different goals for performance, weight, longevity and photography than the Pro models.

‘Sometimes we do draw from the Pros because they’re just incredible, and we’re bringing some of that hardware to a broader audience, and sometimes we go do something different.’”

In talking to The Sydney Morning Herald, one of Apple's goals was to draw attention to how less expensive flagship iPhone models aren’t just pro models that had features removed. Instead, non-pro iPhone models may in some years contain features that premium models lack. For the iPhone 14 and 14 Plus, such features include superior battery life (found with the Plus) and repairability (found with the 14).

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Thoughts on iPhone 14 and 14 Pro Pre-orders, Garmin Trolls Apple, Apple Watch Ultra Battery Life (Daily Update)

Hello everyone.

One clarification regarding iPhone 14 Plus. In yesterday’s update I wrote:

“The iPhone 14 Plus finds itself in a pricing canyon. It’s the third-most expensive iPhone, after iPhone 14 and iPhone SE. However, it’s just $100 less than the 6.1-inch iPhone 14 Pro.”

That should have said "It’s the third-least expensive flagship iPhone.” The broader point is unchanged - the iPhone 14 Plus finds itself in a weird spot within the iPhone line.

With that, let’s jump right in.


Thoughts on iPhone 14 and 14 Pro Pre-orders

Here is the current delivery dates for the iPhone 14 flagships (U.S.):

  • iPhone 14 (Sept 20 to 21) – available Sept 16th

  • iPhone 14 Plus (Oct 7) – available Oct 7th

  • iPhone 14 Pro (Oct 13 to 20) – available Sept 16th

  • iPhone 14 Pro Max (Oct 20 to 27) – available Sept 16th

Apple has embraced an underpromise and overdeliver mantra when it comes to delivery estimates for online orders. Delivery dates almost always end up being pulled forward. This may explain why delivery dates aren’t dependent on iPhone finish color or storage. Apple may be simply providing an estimated delivery range for each model that it is confident it will not just meet but exceed.

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The iPhone Mini (Above Avalon Report)

An analysis of Apple’s iPhone mini strategy including the model’s lukewarm reception with consumers and difficult time competing against the iPhone SE.

Written by Neil Cybart

The iPhone business is booming. Unit sales are estimated to be at record highs (~270 million units per year) while average selling prices remain at healthy levels ($750+). No Android alternative comes close to matching the iPhone’s success. A major contributor to the iPhone’s success over the years, both in terms of sales and installed base growth, has been Apple’s intelligent approach at diversifying the iPhone line based on feature set and price. Selling a range of iPhone models, including the iPhone mini, has played a key role in Apple reaching a larger customer base.

History

Apple’s iPhone model expansion strategy started relatively straightforward and early on.

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