14 DAY TRIAL // The first quarter of fiscal 2017 is the best ever for iPhone. Apple sold 78.3 million iPhones in the past few months. The revenue from the iPhone business alone topped $54.4 billion.
The best model was, rather unexpectedly, the iPhone 7 Plus. But is that enough to make Apple a winner in the long run?
Two very low quarters
The market will stagnate for Apple in the next couple of quarters. The first reason is obvious: no Black Friday, no Christmas or any other important holidays will help the iPhone business. Also, keep in mind that every iOS user will quit spending money on an 8-month-old device and wait for the next best thing. The rumors sound good, even though they are only rumors.
I am pretty sure we will see again some low quarters, just for Apple to rise again in the 4th fiscal quarter of 2017.
The White iPhone theory
So what could turn the next two quarters over? The first thing that comes to mind is a Jet White (Piano White) iPhone. This is another rumor that has been floating around for some time. Apple may pull that out of the hat just in time for Easter, for example.
Is that going to be a big hit? Sure! Customers are waiting for a change in design and a new color that matches the AirPods may be just the thing to make them forget about the upcoming iPhone 8, or whatever the next big redesign will be called.
This theory is also a good one for when Samsung or Google release their new flagship phones, in spring or early summer of 2017. Getting something new out is Apple's strategy to conquer a big slice of the market that would want to try a good Android phone for a while.
How about an iPhone 7s?
The upcoming iPhone may not be the long-awaited iPhone 8, but an iPhone 7s. Well, that is totally plausible, considering the success of the iPhone 7.
Who would have guessed back in September that Samsung's phone will go down in flames (literally) and the Google Pixel is not going to be a hit?
Apple took a very risky bet back then, and they have won that in the first quarter of fiscal 2017. The iPhone 7 and iPhone 7 Plus are not only a hit but the best selling smartphone on the market. Apple is in a league of its own with the numbers they have reached in the past 3 months.
Did it matter that the design was the same as for the iPhone 6s? Did anyone really care that the case looks the same for the uninitiated? Not really.
Will an iPhone 7s, with upgraded internals, a better (dual) camera and battery, a glossy white finish and more capacity bother anyone? Not really.
iPad mini is a strong reason for iPhone 7s
The iPad business did not rocket through the roof, but the $13.1 million Apple made was good enough for the tablet market.
It is interesting to mention that the iPad mini has not been updated since 2015. Guess what? People are not only buying it, but they like it and use it.
Why would Apple change something if it works so well? A redesigned iPhone 8 Plus, with a larger diagonal screen in the same case will not be good for the iPad mini.
We already know that Apple likes to cannibalize itself so having two devices with similarly sized screens would be a good way to see who is going to win.
Services are next
Apple is focusing on one area at a time. Apple TV got a much-needed refresh two years ago. In 2016 we saw the new iPad Pro and now Services seem to be the main focus in Cupertino.
The reason is money! Apple's Services business is blooming. With $7.2 billion in revenue in the past fiscal quarter and over $3 billion made in December, the AppStore, iTunes, Apple Pay and all the other small stuff will be next in line to get a make-up.
Phil Schiller is already doing his magic with the AppStore. Developers have gotten the big news about being able to respond to comments and reviews in the AppStore. They will also have a proper way to ask for reviews from new users, all within the AppStore's API and Terms of Service.
With all of that on their heads, Apple may want to loosen up the work on iPhone and other products just to get the Services off the ground. Bear in mind that this includes iTunes, which is a dying breed of software. Apple will finally have to decide between replacing it with a few other applications or simply removing it from the computer and doing everything in the cloud.
Circling back to the devices: with an iPhone that sells in good numbers and an iPad that is good enough, Apple may decide to rest on their laurels. I know what you're thinking. This is Apple we're talking about: they will come up with something new in 2017.