I think you are discounting the value of the ease of use of the operating system.
No, I don't. But you got to ask this question. The older iphone and Ipad can run IOS 5.1, so if software ease of use is what I am after, can I upgrade every 3 years instead of every year? That is the same dilemma that Microsoft and all the PC maker are facing now. There is a very big install based on Window PC/laptop, but not many of us (me included) find the need to have faster processor, bigger memory, better graphic every year. So my upgrade cycle depend on when my PC break down (so may be every 5 years?). When the end market is not growing (right now the high end phone market is still growing very fast since everyone is eating RIMM and Nokia lunch now. but my contention is that once we get close to 30-35% of smartphone market share, the number of customers willing to pay for high end phone go down really fast.), then manufacturer maker will depend on upgrade. And upgrade cycle get stretch out if innovation is not there. So at the end of the day, Apple dominate position depend on having "must have" feature on their phone in every iteration of their product. After a couple iteration of product without "must have" feature, customer will start looking for alternative and stretch out the replacement cycle. Just look at all the forum discussion on Ipad 2 users and their debate on whether to upgrade to the new ipad or not is a good indication of the problem Apple (or any phone maker) are facing. And I consider retina display a "must have" feature (unfortunately some Ipad 2 user don't think so). The test, I think, is whether iphone 4s owner will find Iphone 5 compelling enough to upgrade or skip Iphone 5 all together until Iphone 6 or later.. |
