Big breakthroughs may take a backseat in Apple's launch of the 10th anniversary iPhone. As Fred Katayama reports, it may be because consumers are holding onto their phones longer.
Don't expect mind-blowing gee-whiz features with Apple's 10th anniversary iPhone that'll replace this current iPhone 7. Many of the anticipated new features like high-resolution displays, wireless charging and 3D sensors have been available in competing phones like Samsung's and Blackberry's for several years. The IPhone 7 itself was criticized because it wasn't that much different from its predecessor. Accounting for the slow adoption of new bells and whistles: customers are holding onto their phones longer. Cowen & Co. estimates upwards of 40 percent of iPhones on the market are more than two years old. This suggests Apple's product strategy is driven more by consumer upgrade cycles and its own marketing needs than by technological innovation. TECHnalysis Research president Bob O'Donnell said, "When a market gets saturated, the growth is all about refresh. This is exactly what happened to PCs. It's exactly what happened to tablets. It's starting to happen to smartphones." So why are Apple's shares soaring trading at an all-time high? There's pent-up demand.