Customers are getting less excited about new generation of iPhones, Report

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October 23, 2018
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According to the latest statistics by Citi Research Innovation Lab, new iPhone models haven’t sold out as quickly as they have in past years. Analysts have used search trends to surmise that “customers are getting less excited for each new generation of iPhone.”

Consumers’ interest in the new iPhones dip

Analysts working for Citi Research sent a note to clients last week about a chart they created that shows waning interest every year in the latest iPhone models. The chart uses the number of Google Search requests from consumers about certain iPhones just before and after their respective “launch event” to gauge the interest in each one. Despite the declining trend, Citi Research still believes that the device can sustain single-digit annual unit growth for Apple, but the firm says that it is not looking for the beginning of a new super cycle. The analysts cited a slowdown in innovation and the saturation of the iPhone in main markets for the declining interest.

Despite the addition of newer features like Face ID, water resistance and an edge-to-edge screen, Citi Research says that more innovation was seen four or five years ago when the screen sizes were increasing and the camera was measurably improving year after year. Google Search results did seem to pop before the release of redesigned models like the Apple iPhone 5 (which increased the screen to 4-inches from 3.5-inches), and the Apple iPhone 6 (which also resulted in two new screen sizes, 4.7-inches, and the Plus model’s 5.5-inches). Not surprisingly, “S-year” models with evolutionary (not revolutionary) changes had lower search requests from consumers. However, there is talk of a major redesign for the iPhone next year, which will reportedly include a TrueDepth Camera on both the back and the front of the phone. This should allow Apple to offer more AR features for the device.

It should be mentioned that Apple launched the iPhone XR at 3 A.M. in the early morning on Friday, and during the late hours of that morning, nearly all of the models were still in stock, according to Macworld. It’s a change for Apple, which usually requires customers to wake up in the early morning to put in a pre-order if they want the new iPhone on the first day. Lines outside Apple stores when the iPhone XS and iPhone XS Max went on sale were smaller than they were in past years.

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