Apple's iPhone Launch Strategy: Rethinking Annual Updates

Apple may need to rethink its annual iPhone launch strategy to embrace surprise and delight moments.

### Rethinking the iPhone Launch: Lessons from Nintendo's Surprise Strategy
* 📱 The annual iPhone launch may be facing a shift as Apple contemplates **changing its strategy of releasing new models every year**, a notion that seems radical given the tradition of **long-standing launch day lines**.
* 📰 Recent insights from Bloomberg's Mark Gurman suggest that Apple is moving away from the **predictable upgrade cycle**, which typically showcases new hardware in **September** after June's software announcements.
* 🤖 The introduction of Apple intelligence, which is expected to **enhance the iPhone experience**, raises questions about whether releasing the iPhone 16 prematurely was wise, especially with users expressing **disappointment over the lack of significant upgrades**.
* 🌍 Additionally, Apple is focusing on sustainability, aiming to **reduce its carbon footprint** by using more recycled materials and potentially producing **fewer new devices**, encouraging **longer device lifespans** through software updates.
* 🎮 Drawing comparisons to Nintendo, which recently surprised consumers with an **unexpected product drop**, the argument is made that Apple could benefit from adopting a similar approach, **embracing spontaneity** instead of adhering to rigid launch schedules.
* 🔄 The success of products like the **AirPods Pro 2**, which receive **substantial software updates** rather than hardware refreshes, showcases how Apple can **innovate without needing annual releases**.
* 💬 Ultimately, the discussion invites opinions on whether Apple should **break free from the constraints of Wall Street expectations** and embrace a **more flexible, customer-focused strategy** in its product launches.

the yearly spectacle that is the iPhone launch could be a thing of the past, and I know that sounds wild because I've been covering annual iPhone launch day lines since it all began. But reports are now questioning if Apple is rethinking the strategy of pushing out a new iPhone every year based on this late-in-the-year arrival of Apple intelligence. Frankly, I think Apple needs to change the upgrade cycle when it comes to the iPhone. You could say Apple is stuck in a loop, and I think the company can take a few lessons from another globally influential tech company that was big in the '80s, Nintendo. On the day I was going to film this week's Apple video, I stopped everything for a bigger story, a Nintendo story. The video game company surprised the world this week by suddenly dropping new hardware. It was this emotion-sensing, sleep-tracking, interactive sound alarm clock. It's called Alarmo. Now, the internet went wild over the unexpected gadget news, something so quirky, so strange, and yet it's tied to health by tracking sleep. It puts a new twist on

alarm clocks is high-tech with motion sensors, and no one was expecting it on a random Wednesday in October. There was no early heads-up to the press, no teaser to the internet. It was a true surprise and delight moment, something Apple might want to tap into more. So much in consumer tech is very routine right now, and I think Apple could take a lesson here. This week, let's go over why Apple might be motivated to change the approach to its yearly iPhone updates and start thinking differently. I'm Brid Carey, and this is One More Thing. At the start of the week, Bloomberg's Apple reporter Mark Gurman got everyone buzzing when he put out a piece about how he sees Apple inching away from the annual product upgrade cycle. The pattern we've been used to for a while is that for WWDC in June, Apple shows off new software, and then the hardware comes—the iPhones, the Macs—they all arrive in September and October, with the software updates landing at roughly the same time. Everyone's on the same page on what to

expect the store employees, the press, the investors, and the analysts. It's a smooth dance, but what happens when we have a situation like this year where Apple markets the phone as being built for Apple intelligence? Apple intelligence is going to transform so much of what you do with iPhone, and of course, AI is part of the big launch Day Celebrations and media push. I say A, you say [Applause]. I and well out of the box, there's no apple intelligence. It brought about reviews that said maybe people should wait to buy it. I saw folks jumping on social media saying they felt disappointed about how it all feels the same as their last phone, so why bother upgrading? Apple intelligence will be a slow roll-out. October gives a few features, November or December may give a little bit more. We saw the broad potential in June with the big sales pitch at WWDC, and customers are now left in the dark wondering when or how it all comes together. Would it have made more sense to wait on the release of the

iPhone 16 until Apple intelligence was ready. Wall Street certainly would have flipped out, but I think true fans are fine waiting to spend their money until something is fully cooked. We don't get annual updates to all of Apple's other products because it's not always necessary or possible to make a leap in the experience worthy of launching a new device. There's not an iPad every year; some Macs go a few years as well. And take a look at the AirPods Pro 2. Here is a product that came out in September of 2022, and it's getting a software update soon that makes it a whole upgraded experience, to the point where it could feel like a new product, possibly be the must-have AirPods of the year, with hearing health features that turn it into FDA-authorized hearing aids. It's a perfect example of how software can make something feel new and exciting again and prevent us from just dismissing something that's outdated for being 2 years old. Of course, we can't talk about hardware updates without

Considering the environmental impact, Apple is putting a greater focus on using recycled and renewable materials, and it wants to bring the company's carbon footprint down to zero. Now, the best way to do that is to just make fewer products. Let's see Apple embrace the idea that we keep our devices around longer with software updates, since these processors can handle so much load now with AI. Apple's business is no longer just a hardware business; there are plenty of subscription services also taking in our money all the time, including Apple TV, which Apple's finding new ways to sell to more customers with an Amazon Prime partnership. It just makes sense that a new iPhone isn't needed every September. Now, I know comparing Apple to Nintendo is comparing apples to mushrooms, but Nintendo is an example of how there are no set rules you have to follow to be a juggernaut technology company. We can just have a sudden drop of a bedside sleep gadget, and fans are going to get a kick out of the surprise, making it a big buzzy moment in the news. And if we're talking

about the frequency of upgrades. Nintendo sure doesn't do that often. The Switch console came out in 2017 and still works just fine. But the iPhone that came out that year, the iPhone 10, yeah, it's not able to get this year's iOS 18 software. But the Nintendo executives are also just more straightforward with the public and customers. Out of the blue, back in May, Nintendo's president sent out a tweet saying the announcement of the successor of the Nintendo Switch will come within the fiscal year. So that means it could come in early 2025. And he was clear. The next big news event at the time was going to be focused on this year's games. See, you could just tell people what to expect. We don't have to have mysterious teasers. There's no pattern we have to follow every time for product launches. And you know what? Nintendo's customers now go into the holiday season knowing maybe something new will come soon, but they still have lots they can do with existing technology. There is a business phrase that is said to have originated with

apple. It's called surprise and delight, and the meaning is that a company should give customers unexpected rewards, access, or even unexpected events as a bit of a tactic to attract loyal customers. Maybe in an era where software is king, we could just let the hardware drops be a delightful surprise to Apple fans when they are ready to be launched and not be on a hard date on a calendar. What are your feelings on the matter? Jump into the comments and let me know if I'm just dreaming and Apple will never leave this cycle because of Wall Street expectations and the fear of seeing its stock drop, or if you think Apple's the one that needs to flip the script and wake up to reality. If so, maybe they should check out this alarm clock. Thanks for watching. I'll catch you next time for one more thing.

Why Apple Should Break the Annual iPhone Release Cycle

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Apple's Potential Shift in iPhone Launch Strategy

Apple may be reconsidering its annual iPhone launch strategy, influenced by the late-year arrival of Apple intelligence.

The company's current upgrade cycle is being compared to Nintendo's unexpected hardware drop, which surprised and delighted consumers.

Bloomberg's Mark Gurman has reported on Apple's potential move away from the routine product upgrade cycle, suggesting a need for a change in approach.

Apple's marketing for the new iPhone focused on "Apple intelligence," promising a transformative experience, but the actual rollout of AI features has been slow, leading to customer disappointment.

The company's strategy of annual device updates is inconsistent, with other products like the iPad and Macs not following the same schedule.

The AirPods Pro 2 is set to receive a software update that could significantly enhance its features, demonstrating how software can rejuvenate a product and make it feel new again.

Apple's Shift Towards Sustainability and Long-Term Customer Relationships

Apple is focusing on using recycled and renewable materials to reduce its carbon footprint and is considering making fewer products.

The company is embracing software updates to extend the lifespan of devices, while also generating revenue through subscription services.

Comparing Apple to Nintendo, the latter's unpredictable product launches and infrequent upgrades have created a loyal customer base, highlighting that there are no set rules for success in the tech industry.

Apple's "surprise and delight" approach involves giving customers unexpected rewards and events to build loyalty.

The speaker suggests that Apple's hardware drops could be a "delightful surprise" for fans, rather than following a strict launch schedule.

They invite comments on whether Apple can "break free from its cycle of meeting Wall Street expectations".