Have We Reached “Peak iPhone?”

For almost 10 years, iPhone has been expanding and updating in order to provide consumers with the latest technology to enhance the user experience.


Despite the announcement of a new iPhone, sales and profits have not been positive.  According to an article by The Guardian, iPhone sales are in decline with only a 0.4% growth over this past holiday season compared to 46% during the same time in 2014.


There have been many speculations  as to why this might be happening, one in particular is the idea that the iPhone has peaked in the market and in the minds of the consumers.


What Could Have Caused This Peak?


By “peak” I am referring to the idea that the iPhone, with all of its different models that have come out over the years, has heavily saturated the marketplace.  In essence, consumers may have several versions of the iPhone that they have passed down in the ranks as they have upgraded.   So the need for new devices may have diminished.


It’s difficult to say what might have caused this peak.  The market is extremely fickle with consumers moving from one product to the next depending on what’s new and popular at the time.  Apple and its iPhone have always been synonymous with good quality, technology and the coolness factor.  It helped to break ground on an industry and field that did not exist 20-30 years ago and which was originally started by BlackBerry (RIM).


Which might be part of the problem.  Innovation takes time.   While Apple continues to improve on their iPhones (ex. larger screens, thinner devices, better software, etc.) consumers are waiting for the next big thing.  The one feature, function or technology that can change our daily lives.  When the iPhone was first released, it helped to change the world.  It’s possible that consumers are hoping it will do so again.



Where does Apple Go From Here?


In business, it is never easy to deal with a sales decline. Whether or not individuals decide to go back to the drawing board, re-evaluate, take drastic measures, etc. depends of a lot of factors.  In Apple’s case, the future of the iPhone may rest in innovation and the technology of the future.


For example, Apple’s recent purchase of Emotient, an artificial intelligence software company, might hold the answer. Emotient is involved in the research and development of software capable of detecting and reading a person’s facial emotions.  Apple’s acquisition of the company may have just put a powerful tool in its belt.



Apple is no stranger to artificial intelligence.  Siri has been a part of the iPhone for many years, with researchers constantly working to improve and perfect the system.  By adding Emotient technology into the mix, Apple could design a slew of functions and applications for the iPhone.  The possibilities are endless.


Another example involves virtual reality (VR) technology.  Apple’s acquisition of Flyby Media suggests that they are looking to create a virtual reality device. Incorporating VR technology in to the iPhones and assorted devices might also provide a competitive edge in the smartphone market.



Whatever direction Apple decides to take with the iPhone, you can bet consumers will be waiting and watching.  While it is up-for-debate whether the market and consumer interest has peaked in terms of the iPhone, declining sales are not a good sign.


Do you think we have reached “iPhone peak?”



Courtney Rosebush is a Marketing and Sales Coordinator at Triella, a technology consulting firm specializing in providing technology audits, planning advice, project management and other CIO-related services to small and medium sized firms. Courtney can be reached at 647.426.1004 x 227. For additional articles, go to www.triella.com/publications. Triella is a VMware Professional Partner, Microsoft Certified Partner, Citrix Solution Advisor – Silver, Dell Preferred Partner, Authorized Worldox Reseller and a Kaspersky Reseller.

© 2016 by Triella Corp. All rights reserved. Reproduction with credit is permitted.

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