Are Big iPhone Overhauls A Thing Of The Past? Apple Shifts Focus To Software Upgrades In New Smartphone Lineup As Major Redesigns Take Backseat

From making yearly design changes to moving to a three-year redesign cycle, the evolution of hardware innovation in Apple Inc.'s AAPL iPhones indicates that the tech giant is now relying on software upgrades more.

What Happened: In its weekly “Power On” newsletter, Bloomberg columnist Mark Gurman spoke about the slow pace of hardware innovation, compared to its track record before 2010s.

According to Gurman, Apple’s yearly redesign schedule was deeply ingrained in its system until the mid-2010s.

However, by the launch of the iPhone X in 2017, Cupertino had moved to a three-year redesign cycle.

Then in 2020 came the iPhone 12, the tech giant's first iPhone to connect to 5G networks.

"After that, the redesign lag got even lengthier. Apple now appears to be working on a half-decade-long cycle," Gurman stated.

See Also: iPhone 15 Pro Models and iPhone 13 Discontinued By Apple: Here’s Why

He noted that the iPhone 16 has a nearly identical look and feel to the iPhone 12. "Apple has added a lot other features between 2020 and 2024, but it's undeniable that the days of frequent hardware changes are over."

While it’s unclear if this has negatively impacted Apple’s sales, the company did experience a revenue decline last year, partly due to slower iPhone sales.

However, Gurman notes that a reliable group of customers upgrade every year or two due to the iPhone Upgrade Program, trade-in offers, or carrier installment programs.

For the iPhone 16 series, he said that despite the absence of major hardware upgrades, the iPhone 16 could be a hit product, given the focus on Apple Intelligence.

In fact, according to Gurman, it is a sign that Apple is now relying more on software to sell its new iPhones.

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Why It Matters: Earlier this month, it was reported that many Chinese buyers were disappointed by the iPhone 16. They cited the lack of AI features in the models as the major reason behind this letdown.

Previously, Apple analyst Ming-Chi Kuo said that iPhone 16 pre-order sales have reached 37 million units, noting that the smartphone's demand could be low.

“Apple employees can already purchase the iPhone 16 with their employee discount. Typically, employees have had to wait several weeks after the release of new iPhone models before being able to buy. This could be another sign that the early demand for the iPhone 16 is below expectations,” he stated at the time.

iPhone 16 series has also been facing increasing competition in China as the country's top smartphone maker Huawei Technologies also launched its tri-fold phone during the same time as Apple.

Despite these challenges, Wedbush analyst Dan Ives said that a strong start in the demand for iPhone 16 has kept Cupertino on track to hit a $4 trillion market cap.

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Photo Courtesy: Apple