Apple is big.
It’s the world’s biggest public company, it has a massive cash reserve, and it makes the biggest selling smartphone.
Profits were up 11% last quarter, driven by better sales of iPhone 7s than expected. Tablet sales also grew for the first time in 4 years.
However, iPhone sales growth has slowed in the past few years.
Well, many western economies are in a new era of slightly high inflation but low wage growth, meaning pockets are squeezed. Buying a top of the range phone every year is out, whilst having a two year contract and perhaps keeping the phone for a further year is in.
And if the squeezed consumer is desperate for a recent release, she need only wait and pick up a used model: the iPhone 6s Plus lost around 50% of its value within its first year.
You also need to point the finger at Apple: there have been limited feature differences between the latest incarnations. In fact, for the past 3 years, the iPhone design, display, camera and battery life have all stayed pretty much the same. This has prompted the company to pour billions more into R&D, investing in suspected new features like “smart glass”; something that this clumsy iPhone user is looking forward to.