In recent years, Apple has been criticized for not innovating the iPhone. From iPhone 12, 13, 14 to iPhone 15, the main improvements are color changes and camera upgrades.
This makes many people question why a leading technology company like Apple seems to have stopped developing products, while competitors like Samsung and Oppo are holding control of the market. mobile phone field.
Why doesn’t Apple focus on innovating the iPhone?
The difference lies in the direction of these companies. Samsung, Oppo and their competitors focus on hardware development, continuously improving products to earn more profits. Meanwhile, Apple has shifted its focus to monetizing online services.
While iPhones are still their biggest source of revenue, profits don’t just come from selling physical products. In fact, Apple’s biggest profit comes from the iOS operating system, which is installed on all of its products.
Strategic differences
The difference lies in the direction of these companies. Samsung, Oppo and their competitors focus on hardware development, continuously improving products to earn more profits. Meanwhile, Apple has shifted its focus to monetizing online services.
Every time you pay for apps, e-books, or services on your iOS phone, Apple gets 30% of that money. This turns Apple into a “landlord” on the iOS platform, earning large and regular profits daily, monthly, and yearly.
While the iPhone remains Apple’s biggest source of revenue, profits don’t just come from physical product sales. In fact, Apple’s biggest profit comes from the iOS operating system, which is installed on all of its products.
Profit from online services
Every time you pay for an app, e-book or service on your iOS phone, Apple gets 30% of that amount. This turns Apple into a “landlord” on the iOS platform, earning large and regular profits daily, monthly, and yearly.
In addition to online services, Apple can also make money from licensing fees and other revenues. This helps them have a stable source of income, independent of selling new products.
Apple also has a large loyal user base, willing to buy their new products even without much innovation. This helps them reduce the pressure to innovate products regularly.
No need for product innovation
This is why Apple no longer needs to push innovation in their phone products. Still, they are one of the most valuable companies in the world.
However, failure to innovate products could cause Apple to lose market share to its competitors. If Apple does not have breakthrough innovations in the future, they may be left behind by their competitors.
It can be said that Apple is shifting its focus to online services to make money. This explains why they no longer focus on phone product innovation. While it may disappoint some, this strategy has helped Apple maintain its leadership position in the market.
