iPhone Anniversary Increases Apple’s Risk of Misstep

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Ten years ago, Steve Jobs helped bring to life a device that would literally help take his company from a lagging computer business to one of the most important tech corporations in the global landscape.

When the original iPhone debuted, Jobs’ corporate philosophy was simple: less is more. Fewer models and devices, he reasoned, meant that Apple could devote time to making the limited product line better than comparable devices, giving customers value in the form of product longevity and relative hassle-free experiences.

Today, Apple CEO Tim Cook has adopted a different strategy, which is obvious with the three upcoming 2017 iPhones: more is more.

The Logistics of Juggling More Product 

Having more product offerings is certainly one way to make more money and attract more customers, but there’s an inherent risk that goes with it.

Projecting user interest and creating marketing that sufficiently differentiates models are just a few of the issues manufacturers face. With the 10th anniversary of the iPhone, Apple has hinted at a very special iPhone model that’s forecasted to hit the market this fall. That device is significantly more complicated than the iPhone 7s believed to be coming out alongside it, further complicating the equation.

Although most of Apple’s product launches have gone off without a hitch, a few in recent years have been notably difficult. For example, the AirPod headphones were delayed by several weeks, and even after they entered production, quickly went to a back-ordered status. A similar situation happened with the iPhone 7 Plus in December, when supplies dried up long before demand.

Upcoming iPhone 8 Release 

The upcoming iPhone release is causing Apple stock to spike, but that support may be premature since the 10th anniversary iPhone is already experiencing delays in the production process.

This phone is intended to be a big step in iPhone evolution, featuring an organic light-emitting diode screen that will wrap around the edges of the phone. Estimated at around a $1,000 price point, the phone is expected to be a hot commodity, but it will debut with a 7s and 7s Plus at $700 to $800 stickers.

Unless Apple is careful, the 7s models risk being overshadowed by their sleeker cousin, potentially driving demand for them down in the face of a phone that could be so much more futuristic for only a few hundred dollars more.

There are a lot of variables Apple will have to forecast just right in order to stay on top this fall if a “more is more” strategy is going to continue to succeed.

 

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