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Apple iPhone upgrade cycle resembles a utility and doesn't require AI

Mar 19, 2025 - businessinsider.com
The article discusses how Apple has transformed into a utility-like company, with its iPhone becoming an essential tool for daily life rather than a cutting-edge technological marvel. Despite flat iPhone sales and underwhelming AI features like Siri, Apple's market value has soared, driven by a steady upgrade cycle as older devices become obsolete or damaged. This cycle is less about new features and more about maintaining access to essential services, akin to utilities like electricity or water. The article highlights that most iPhone users prioritize reliability and ease of use over the latest technology, which has contributed to Apple's sustained success.

Warren Buffett's investment in Apple is likened to his interest in utilities, valuing the company's ability to generate reliable returns. The article also notes that switching from iPhone to Android is rare due to the perceived complexity and inconvenience, further solidifying Apple's stronghold on its customer base. While Apple lags behind competitors in AI and other innovations, its ability to charge premium prices for its products without regulatory constraints ensures its continued profitability and status as the world's most valuable company.

Key takeaways:

  • Apple's market value has significantly increased despite flat iPhone sales and underwhelming AI features like Siri.
  • The iPhone is viewed as a utility, essential for daily life, with users prioritizing reliability over cutting-edge technology.
  • Switching from iOS to Android is rare due to perceived complexity and the seamless integration of Apple's ecosystem.
  • Apple's pricing power allows it to charge premium prices for new iPhones, contributing to its status as the world's most valuable company.
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