Stratechery The Services iPhone
Sep 8, 2022
Discover how Apple has transformed its iPhone strategy into a service-driven model. The discussion highlights pivotal moments like the iPhone 5C launch and dives into pricing changes and product differentiation. Speculations about future shifts in Apple's ecosystem paint a fascinating picture of what's next for the tech giant. Tune in for insights on the evolving narrative around one of the most iconic smartphones in history.
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iPhone 5C
- In 2013, Apple released the iPhone 5C, a cheaper iPhone.
- It was later revealed that the 5C was a one-off due to manufacturing costs and design flaws.
Differentiation & Integration
- Differentiation through user experience integration is a sustainable competitive advantage.
- This justifies premium pricing, contrary to disruption theory.
Apple's Revenue Growth Strategy
- Apple’s revenue growth comes from existing users buying more expensive devices and services.
- This strategy generates significantly more revenue per user than selling cheaper iPhones like the 5C.