“About 40% of Apple’s install base, based on our estimates, have not upgraded for three and a half years. If you combine that into a 5G, four phone release, we believe that really creates a perfect storm of demand,” Ives said, predicting that Apple could sell more iPhones this fiscal year than the 231 million it did in 2015.
It’s yet to be seen if consumers really care about 5G, too: A study from April found that “65.7% of consumers said they weren’t very excited,” while recent analysis has shown that 5G is in many cases slower than 4G. “5G coverage is still limited, and it’s unlikely consumers will pay extra for features they can’t use,” analyst Gene Munster recently said, adding that he expects 5G iPhone sales to quicken toward the end of next year once coverage has improved.
Watch Apple’s stock after the iPhone event on Tuesday. Facebook’s new Oculus ships on the same day.
I’m becoming a frequent reader of Protocol, if for no other reader than that they publish every day and the pressure of it flooding my RSS makes me scan it for interesting reading every day or so.
I’m one of those 40% install base that hasn’t upgraded in a few years. My family sometimes laugh at how old my phone is, since I’m on an iPhone 7 Plus, but when I buy a new phone this winter (because I’m not expecting to get it in the first run of phone sales, and because Apple screws up the first set of hardware anyways because of the sheer volume of hardware they put out), I’ll have a phone that’s newer than anyone in my family by at least a year and change, so that’s that.
But regarding 5G, I’m going to steer clear from those phones. First, I know that Apple will price them differently. But would you buy a phone with a network technology that’s not supported by a majority of the geographical area yet? Sure, in some places you’ll get faster-than-WiFi speeds, but those will be far and few between for at least two more years. Knowing USA’s shit record at rolling out new network technology (network vendors love spending on backend networking hardware that saves them money, but they’ve always been slow on customer-facing rollouts because those take a lot more money), I’d say 5G is still a good 5 years out.
This is the same as when we were buying a TV three years ago. The choice was between a Ultra-HD 65 inch behemoth that was moderately priced (this model’s price has fallen to CRT-TV rates now), or a 45 inch 4K TV that was grossly overpriced. I stayed away from the 4K even though my brother was trying hard to convince me otherwise. His ideas on 4K content being the norm are still not true, three years past. It’s just too much to expect from media and backbone tech companies to move too fast on expensive technology. Not their thing. Maybe with the coming 5G, 4K content will get a boost. But again, that’ll be 5 years from now, when South Korea will be swimming in a sea of 7G and 8K content.
Now, the fear is that Apple will introduce something radical in the 5G phones that will not be present in the 4G LTE phones. They’ve done this before with the larger phones getting an extra camera module, or OLED screens instead of LCD. They could very easily toss in a much better camera, making their 4G models less appealing, or add back the fingerprint scanner, which is infinitely more convenient than face scanning at night, or when you’re wearing a mask, or when you’re on the move, and so on.
But will they? They might have some ridiculous hardware thing up their sleeve – like a heart rate monitor (from Android phones of a few years ago), or a dedicated Siri button that you could customize to run shortcuts (again from Android phones a few years ago). Or maybe they’ll do something stupidly expensive, like throwing in a pair of airpods with the 5G phones (though this would fail if the airpods are not in the iPhone box, because them being a separate product will feel very un-Apple like, as in a small physical discount to get you to buy their product).
But most likely, they’ll toss in a year (or two) of their Apple One software subscription with the costlier phones. That would be perfect, because I couldn’t give two
shits about their software subscription model. I’m not into Apple Arcade, or Apple TV+, or Apple Music, or News+, or extra iCloud storage, and certainly not their Fitness+ product.
I exclusively play one or two games on the iPhone – mostly sudoku and Call of Duty: Mobile. I have subs for Netflix and HBO and a good Plex Media Server. I prefer Spotify for their content and their high availability on Google Home devices. I find News+ to be a stupid, overpriced offering that everyone should run away from. I am impatiently waiting for Dropbox’s Family plan to drop, because that will
forever solve all of my storage problems. And, well, have you seen the freely available catalogue of fitness videos on YouTube? Blows everything else out the water. Get lost Peloton, YouTube is the king of fitness videos!
So, yeah, if Apple sticks to only offering Apple One for free with their 5G phones, it’ll be very easy for me, and millions of others to stay away from those phones this cycle. Will this hurt Apple’s stock? Maybe.
I found it interesting that Protocol mentioned that Facebook’s Oculus ships the same day. Does it matter? No. Facebook took and effectively killed the Oculus. The latter was probably burning money like crazy and needed a sugar daddy, but Zuck isn’t the kind you want. Maybe, maybe, the next iteration of AR/VR will be propped up by 5G, ML-GPU chips, and Nvidia-ARM superchips. But as of right now, the more interesting thing Protocol could have pointed out is that Amazon’s Prime Day is on the same day as well! Amazon has granted me a $10 credit, which I’ll feel obligated to spend on something a lot more than ten dollars that day, as I ponder upon how much I’m going to enjoy my new iPhone, when I finally get it a few months later.