Americans, strapped for cash, skeptical of innovation and uncertain about the future, are holding onto big-ticket items like phones, cars, and homes longer.
Apple, the maker of America’s most-popular smartphone, is doing its best to position this as a feature and not a bug.
“We are continuously striving to increase product longevity through new design and manufacturing technologies, ongoing software support, and expanded access to repair services,” the company wrote in a white paper released last week called “Longevity by Design.” As proof the company cites the “hundreds of millions of iPhones that have been in use for more than 5 years,” a 38% decline in out-of-warranty repair rates from 2015 to 2022, and six years of software updates for iPhones.
It’s true that people are holding onto iPhones longer, but it's not just because the devices last — changes in carrier subsidies and fewer notable hardware innovations contribute to the trend.
Making reliable, long-lasting products is good for both the environment and Apple’s brand perception. But it’s also true that Apple’s services division notches much higher gross profit margins than hardware. In other words, selling new phones just isn’t as likely to directly drive growth to Apple’s bottom line as it once did, so Apple can afford to spin people not buying new iPhones as a good thing.
Notably the paper doesn’t mention AirPods, which considering the rate at which they’re lost or broken, can seem like a subscription business.
For what it’s worth, Apple recently made it a little easier for individuals and third parties to repair its phones, but only after years of fighting with activists and lawmakers. Even in this latest white paper, where it touts its improvements on repair, the company notes, “optimizing for repairability alone may not yield the best outcome for our customers or the environment.”
Also, it’s not like Apple isn’t pushing for people to buy new iPhones either. Apple is hoping that its AI upgrades will nudge consumers to spring for a new iPhone, since it will only be available on iPhone 15 Pro or later.
