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The iPhone Doesn’t Need iOS Any More: Part I

1/28/2023

 
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What I’m about to say is going to strike many as clickbait contrarianism written only for the purpose of provoking. But I can assure you, that if I’m thinking it on the outside, there are financial analysts within Apple making the same case. It’s the logical financial conclusion if you adjust your priorities.
​What is the iPhone’s Value Proposition? 
Why do people choose to buy iPhones over less expensive Android competitors? Is it solely because of iMessage lock-in? Is it due to privacy concerns? I would argue that the two biggest reasons people buy the iPhone has nothing to do with iOS. It is because of the perceived hardware quality and the extensive customer service and support afforded by the huge Apple Store retail network. 
 
The Quality Factor
 
For all of Samsung’s success in the Android world they have suffered some serious blows to their quality reputation. Everyone remembers the exploding Galaxy Note 7 from a few years ago. Having airline pilots announce before every flight that Note 7s were banned from their flight didn’t help. And more recently, many tech YouTubers have started noticing that almost all of their Samsung phones are suffering from bulging batteries. 
Apple isn’t perfect, but they are the best. When your average consumer makes big ticket purchases, quality begins to assert itself as a major factor. And with phones regularly costing nearly $1,500 or more these days, people want to know that they are getting a phone that will be around for a while. With Apple’s reputation for quality, they will be on every discriminating shoppers short list. 
 
Customer Service & Support
The fact that Apple has a huge bricks-and-mortar support system which spans the globe isn’t talked about enough. But it gives them a huge advantage in the premium smartphone market. If you have an issue with your iPhone, you can make an appointment to go and speak to a technician who knows that phone inside and out. With Android, at best you can go speak to a carrier representative who has to juggle 15 different brands. 
 
And with Apple an Apple Store nearby, you can get hardware replacements or screen repairs done within an hour. With Android, you may need to spend a week or more with shipping boxes across the country. People like good customer service and Apple is second to none in this area. 
 
iOS is Losing It’s Luster
Now, I’m a big iOS fan. But I’m atypical. I value the security and privacy that iOS gives my iPhone. The problem is that most people don’t really care about these things as much as I do. If they did, Android wouldn’t control over 80% of the global smartphone market. 
 
And more and more, iOS and Android seem to be more feature competitive with one another. Even if one side does manage to eke out an advantage in one area, the other side will usually catch up in a year or two.  As much as it pains me to say this now, Android is now pretty good. A few years ago I wouldn’t have ever considered it as a viable alternative to iOS. But now, yeah, Android has come a long way baby. 
 
The iPhone’s biggest advantage over Android phones isn’t even software related, it’s hardware. The iPhone for years now has been able to absolutely destroy it’s Android competition when it comes to processing power. Apple silicon is so superior to Android SOCs that the iPhone 12 from two years ago is just as powerful if not more so than most of today’s Android phones. And that is no exaggeration.
 
So Why Keep iOS Around?
Ah, this is the whole reason for today’s post. It’s a setup for what I really want to talk about. Why is iOS still around and should it be in the future? What alternative is there? That is coming in a future post.  As I said at the beginning, if I’m thinking these thoughts, much more talented analysts within Apple with access to much more data are thinking the same thoughts.

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    Robert Perez

    Manufacturing and distribution analysis since 1993.

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