On the eve of iPhone’s 10th anniversary

Okay, the anniversary event isn’t taking place tomorrow, but on Tuesday 12 September 2017 at the newly opened Steve Jobs Theater on the new Apple Park campus in Cupertino, California. At the invent Apple is expected to unveil the 10th anniversary version of its iPhone line of products, which, for the past several years, has been generating more than sixty percent of the company’s revenues. The iPhone has also become a central hub for products like the Apple Watch, Apple TV, and the new HomePod. (HomePod is of course Apple’s smart speaker, the company’s answer to Amazon’s Echo.) On what competitive landscape is iPhone 8 going to land when it is launched next week? What blessings are Apple diehards going to count on from the previous versions of iPhone? What out-of-this-world features will make Apple customers open their wallets to replace their current devices? Finally, what is the probability of success for the 10th-anniverasry iPhone? For hints on answers to these questions, please read on.

First, let’s take a look at the competition landscape. Competition is coming, of course, from Samsung, whose devices are as similarly priced as the iPhones; and from the relatively cheap brands that are mostly from China (Huawei, OnePlus, Xiaomi, etc.). (I do not think Google Pixel or Motorola Moto G5 Plus can compete effectively.) While the quality of the cheap brands may not be as good as that of the more highly-priced ones from Apple and Samsung, the cheap brands do generate significant demands, especially in developing countries like China, India, and Nigeria. After all, they “look like” the premium products. So, the real competition then may be between the Galaxies of Samsung and Apple’s iPhones.

Preemptively striking, Samsung Electronics launched the much-awaited Galaxy Note 8 in New York on 23 August 2017, with features that would hopefully keep the rival iPhone 8 in check when it is launched next week. So, Note 8 is boasting of a smarter S Pen stylus, a bolstered dual-camera system, and the largest-ever screen on a Note device that fits in one hand. (The 6.3-inch “infinity” display in Note 8 is expected to wow some customers. Samsung first introduced the Note series in 2011.)

The improved S Pen Translate in Note 8 is quite handy for translating a website in a foreign language, by enabling quick translations of entire sentences in 71 languages, with the additional ability to instantly convert units and foreign currencies. Note 8 will be available in stores starting from 15 September 2017 in 40 countries, including South Korea and the US. Note that Apple products are not intended for power users, who are interested in very advanced features - like networking. Apple products tend to be simplistic and ideal for the lay person. No more, no less.

A few darling features have kept iPhone users loyal. Facetime allows you to connect with friends and families worldwide in real time, while iTunes really brings out the music lover in you. The Apple Store has played a significant role in keeping iPhone users loyal. With the store, your issues are resolved promptly and professionally by people who seem to know your device in and out. That is, you receive support directly from Apple and get your problems resolved right away rather than having to take your phone to a wireless carrier or mail the phone to a repair center and wait for it to return, like you typically have to do with Android phones since they are made by other companies.

While the tight integrated business model of Apple has disadvantages, as alluded to above, it does lead to Apple products being more secure. The main reason for this is that Apple’s iOS can only run apps that Apple has approved to be included in the App Store. On the other hand, software from outside of Google’s official app store is capable of running Android. Furthermore, software updates, which are another factor in security, are almost automatic for iPhone users, with about 87 percent of Apple devices running the latest iOS today, compared with only 13 percent for Android users (running the latest OS, Nougat).

There is also an almost perfect interoperability amongst the various Apple products because of the company’s tight ecosystem. Thus, once you invest in other products by Apple, it’s hard to leave the ecosystem. The iPhone is perceived as a reliable brand by its users. Moreover, a survey by 451 Research reports that among smartphone owners, iPhone customers are the most satisfied, followed by owners of devices from Samsung, Motorola and LG. The same report also observes that 91 percent of those who plan on buying a new smartphone in the near future say they intend to buy another iPhone.

The rumored features of the anniversary iPhone (iPhone 8) haven’t impressed me much: ditching the home button to make room for a larger phone, Apple’s latest augmented reality, facial recognition for unlocking the device; along with the ability to charge the device with magnetic induction. Hopefully, more details on capabilities will come with next week’s launching.