Don't Say I Didn't Warn You: Apple iPhone Keynote 2019
Ladies and gentlemen! I have my new AppleWatch series 5 on its way!!! I could not be happier about this important moment for my Apple Loving Life! I will keep you guys updated on my thoughts as I enjoy this new always on screen life. BUT, there were also other things to talk about…
The new phones are good if not great. They are not "innovating" massively and taking a leap into the unknown; they are betting on a more incrementally significant upgrade. Enough to excite but not too much as to take a big risk that could backfire. How is that a good thing? Well, because the iPhone is slowly winding down, and services and Apple Watch are exploding up.
Apple has known for a couple of years now that the iPhone’s power in the market has been set, that people have great phones made by them and have now become a victim of their own success. Older models are still performing strong and steady, PLUS the resale value is WAY higher than any other brand of phone. The result is what is currently happening: a transformation towards the balance that the market demands in terms of services vs products. The iPad is being revived with great pricing and laptop replacement capabilities in iPadOS, the Mac has a strong niche market, and the iPhone has reached a saturation point.
In comes the Apple Watch and demolishes the smart watch and the everyday watch market, Apple Music has proven to be amazing and second to none, Apple TV only has its price and remote to improve, AppleCare has now become a subscription service, that leaves two “unknowns” Apple TV+ and AppleCard. It does not matter what you think about the iPhone, it will sell and either stagnate of decrease in sales, and you will see the change from the product being Apple's goal, to it being the means to the NEW goal: services.
The more iPhones that have the latest iOS, the more Apple Credit Cards, Apple Music, Apple TV+, Apple Care, iCloud Storage, App Store, iTunes/Books, Apple News and Apple Arcade (I hope I am not forgetting any). The strategy became evident during this week’s keynote when an Apple TV+ full year subscription is given to all customers that purchase a new Apple device that has the service (TV, phone, iPad, Mac). Not only is it clear that debuting the trailer to the Jason Momoa series “See” was a grab of attention towards the service, but they also are starting with a competitive $5 price per family.
Services are gaining ground on the Apple keynotes, specifically this time with TV+ and Arcade. But I invite everyone to think about the change that is upon us, and by “us” I don’t just mean Apple, I mean the entire smartphone market: 5G, WiFi 6, everyday AR, digital photography, battery life vs thinness and weight, inductive/wireless charging from and to device, etc. etc. Now we have to truly see keynotes and product announcements for what they are: a change towards a Service-Driven future of the companies in a saturated market. Apple and Amazon got to a trillion dollars, growth does not seem to be a worry
What priorities do they tackle now that they have the time and money?
Don't say I didn't warn you that big changes are coming...