Apple will be 40-years-old on April 1st. It is no longer the young hip company that many of us still see it as. Technically, it is a middle-aged company, so maybe it is time for some mature decisions when it comes to its products.
Yesterday, Apple released a list of new items that are to be available in the upcoming months. The first is the iPhone SE. “It looks like the iPhone 5S, Apple’s last 4-inch phone released in 2014, but has the same processor and graphics performance as the iPhone 6S. Inside is Apple’s A9 chip, which doubles the speed of the iPhone 5S. It can use Hey Siri, the hands-free voice assistant, has a 12MP camera, and shoots 4K video. There is an NFC chip inside so the phone can work with Apple Pay,” said Apple CEO, Tim Cook.
For a company that was deemed the most innovative company by the Boston Consulting Group in 2015, it seems to be slowing its pace with this new release. But why?
Apple sold over 30 million iPhone 5s last year. There is a demand for a smaller, less expensive phone, so it only makes sense that Apple would market to this audience. But for a company that focuses on innovation, this new release is out of the norm.
The company is well aware of the fact that they aren’t going to lose customers due to this mature, thought-out decision thanks to their brand loyalty. According to Marketing Strategy, book one of the SMstudy® Guide, “This metric (brand loyalty) is reflected by how many customers purchase a brand repeatedly. It indicates the commitment that customers have towards a brand and is the basis of a strong relationship between the brand ad its customers. The underlying metrics for brand loyalty may be the percentage of repeat customers out of total customers, the frequency of repeat purchases, and the degree to which other brands are also purchased along with the brand under consideration.” With a bit more than a billion Apple devices in live use around the world today, the brand loyalty is definitely there.
Since Apple is a 40-year-old company that has made a name for itself in the world of innovation, it is a smart move to put on the innovative breaks when it comes to the iPhone and focus on what the people want. And what they want is a phone that fits well in their hand, has a great camera, and runs quickly. Really, who does use all of those extra features anyway?
This doesn’t mean that Apple won’t be launching the iPhone 7 at their regular release time in September (and it better be amazing … and if it’s not, I will probably still purchase it), it just means that the company thought good and hard about why 30 million people chose the smaller, cheaper iPhone 5 over the more advanced iPhone 6S.
We all have to grow up someday, even Apple. It is enlightening to see the company break free from the Peter Pan Syndrome and make responsible decisions to further their brand and their company. But we all look forward to what it will come up with next. My vote is for holograms, anyone else with me?
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