It’s crazy — on the one hand, we want sustainability and to preserve the world for our kids, but on the other hand, we replace perfectly good products on a yearly basis.
iPhone Owner
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Dear iPhone Owner,
Viva la revolución! Dónde está la revolución?
I’d like to celebrate the new iPhone 16, but like you, I’m wondering, ‘Where is the revolution?’ Whatever happened to it? The average iPhone owner holds on to their device for three-plus years, but I’m hanging on to my cracked, ugly iPhone 12 for as long as it lasts. After Apple officially launched the new iPhone at an event at the company’s headquarters in Cupertino, Calif., on Monday, I realized most people won’t keep their old iPhone is not to save the planet. They might, however, for other reasons.
It’s hard to blame politicians for rising prices only to fork out $ 799 for yet another iPhone. Where is Apple’s next blockbuster product? Sure, the iPhone 16 will be powered by a new “A18 Bionic” chip, integrate artificial intelligence into its camera control, feature 85% recycled content in its enclosure and use an ultrawide camera for automatic focus that will be able to take better pictures in darker environments. The new chip will be 60% faster than my iPhone 12’s central processing unit.
Amid all the pontification about the latest features on the iPhone 16, most people have other things to worry about — notably the price. Prices start at $ 799 and go as high as $ 1,599 for the iPhone 16 Pro Max. That’s a month’s rent for the average American. As another reader wrote to the Moneyist: “Sorry, Apple. I am holding on to my original iPhone SE. I just can’t pay for something that will irritate me every time I see the screen … The price is an insult. Not getting over it, ever.”
It’s cool to hold on to something until it’s on its last legs. Just like it’s uncool to adopt a pet, only to return it.
Americans in 2024 don’t need a brand to tell them who they are. Inflation does that to a person. Remember those lines for the latest iPhone in the early years of the device? Did you feel envious that those lucky ducks would be the first to experience the joys of the latest model? Or did you, as I did, feel sorry for them and think — however uncharitably — “Don’t you have anything better going on in your life than standing in line for a smartphone?” That’s how I feel today.
Is it because I’m a cynical, jaded European who is devoid of the optimism and consumerism of the New World? Perhaps, but I’m not the only one who feels this way. Writing on MarketWatch, Cody Willard, the chief investment officer at 10,000 Days Capital Management and the publisher of TradingWithCody.com, says Apple AAPL must grow its ecosystem and show the same revolutionary culture that led to the Mac, the iPod, iTunes, iPhone and iPad.
As I wrote last month: From Tesla TSLA cars and Nike NKE sneakers to Stanley water cups, we live in an upgrade culture. I try not to follow trends. I wear dead men’s shoes, after all: Yes, I have bought leather uppers in a thrift store. (They were handmade and in exquisite condition.) But I was out with friends recently and somebody commented on my pathetic, broken iPhone 12. I braced for judgment, but then he showed his own battered iPhone with pride. His smile was one of solidarity.
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Weakening brand loyalty
Peer pressure is operating the other way. It’s cool to hold on to something until it’s on its last legs. Just as it’s uncool to adopt a pet during a pandemic — only to return it. Waiting to trade up is a sign of good character. If you couldn’t care less whether you have the latest and greatest iPhone, it shows that your values lie elsewhere. Just swap out the battery. Meanwhile, the advertising industry preys on our insecurities to sell us everything from anti-aging cream to the latest fashions.
McKinsey & Co.’s State of the Consumer: 2024 report found that what consumers want is changing. “Weakened brand loyalty, affordability over sustainability, and heightened interest in wellness products and services reflect the preferences and priorities of consumers across ages and geographies,” the report said. Apple CEO Tim Cook knows this: Walks in the park with your aging parents are helped by — and are even more fun because of — the iOS Health infomatics app.
Chief among the consumer trends was brand exploration. “When they couldn’t find exactly what they needed because of pandemic-era supply chain disruptions, roughly half of consumers switched products or brands,” McKinsey says. “That behavioral change has proved quite sticky: consumers continue to be open to exploring alternatives, and brand loyalty is fading across demographic groups.” (Apple loyalty, to be fair, is high compared to other brands.)
Amid the pontification about the new iPhone, most people have other things to worry about — notably the price.
But the trending tide is turning. In “advanced markets,” McKinsey says, over a third of consumers have tried different brands, and approximately 40% have switched retailers in search of deals. “Inflation and economic uncertainty are almost certainly inducing this behavior,” the researchers say. Those advanced markets include the U.S., France, Germany, Italy, Spain, the United Kingdom, Canada, South Korea, Japan, Australia and the Netherlands.
Apple is pitching its products to a new generation that is less likely to stand in line for the joy of holding the latest gadget. “This weakening of brand loyalty is not limited to a specific age group,” McKinsey adds. “In the past, older consumers remained consistently loyal to their preferred brands, but today, they’re just as likely to embrace new brands and retailers. In Europe and the United States, Gen Zers and millennials are only slightly more likely than older consumers to trade down to lower-priced brands and retailers.”
Tim Cook, naturally, holds a strong hand: Apple, along with your favorite toothpaste, bank and football team, is among the stickiest of brands in America. Once you’re locked into the technological ecosystem, the minty-fresh flavor that reminds you of your childhood, the sports fandom, the financial network and the memories of supporting your local team with your father, that’s a hard habit to break. You can add Netflix NFLX, Spotify SPOT and Tinder MTCH to that list.
It will take a revolutionary device for me to open my wallet.
The Moneyist regrets he cannot respond to letters individually.
More columns from Quentin Fottrell:
You’re not stupid enough to have to work in a place like this’: We need to give fast-food workers the respect they deserve
‘Not tipping 20% makes you look like a fascist’: Why has tipping, once branded as un-American, become such a hot political issue?
‘Warren Buffett stayed calm and clear-headed amid chaos’: Here’s my biggest lesson from the Great Recession
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