That’s the beauty of iOS. It has retained the same basic look and feel making transitions to new operating systems mostly a non-issue. I tend to think most modern phones look alike anyway. Bless that notch.
Every company should have a HomePod flop. Apple probably lost money in the $15B in revenue it made on the HomePods.
But as
@Abazigal explained stagnate apple didn’t. Some people may not recognize how apple expanded because they don’t follow the company. Stagnating at $2B is some feat.
To add on (I typed out the earlier response while waiting for the bus; am sitting down now in front of my ipad and have a little more time to form my thoughts).
1) Iphone install base has grown to over 1 billion users (you will see this point being reiterated from time to time because of how under-appreciated it is). This is what make all of the following points possible, because the number of iPhone users vastly outnumber the number of Mac users. So it makes perfect sense to focus on the former, even if it comes at the expense of the latter.
2) The Apple Watch and AirPods speak volumes of Apple’s foray into the wearables space. Apple already has devices for the wrist (Apple Watch) and ears (AirPods). Moving forward, it’s clear that Apple is moving to pivot into wearables [eg: body (clothing), eyes (AR glasses), even as they continue to invest in health].
Same goes for transportation (my bet is on autonomous ride-sharing), which puts Apple in a prime position to rethink the car. It also helps that Apple has many of the ingredients need to make such a concept possible.
These are not niche industries. Health and transportation have the potential to appeal to pretty much every human being on the planet.
3) The App Store is pretty profitable. That Google pays Apple billions of dollars a year for something as basic as keeping search default speaks volumes of the power that Apple holds over their ecosystem.
4) Apple has transitioned from a paid music download service to music streaming (though the impact on the sustainability for musicians is another discussion for another time), and has locked in users from the more lucrative developed countries. This is likely why they can afford to pay artists more, and why Spotify is still not turning a profit despite having more subscribers on paper).
5) Apple continues to push forward with Apple TV, and has also launched News+, Apple Arcade, Apple Card and Fitness+. These add value to the apple ecosystem and make my apple products worth more than just their hardware components.
6) Apple continues to develop key services including Apple Pay, iMessage and Maps. This is in addition to rolling out annual updates to their OSes (iOS, macOS, tvOS, watchOS), which is able to reach the majority of their users thanks to their tight-knit control over their ecosystem.
This doesn’t sound to me like a company who has “barely innovated” since the passing of Steve Jobs.
Meanwhile, attempts by competitors to move on to the “next big thing”, such as smart speakers by Amazon and Google, or hybrid laptop / tablet computers by Microsoft, have not really taken off. Even Samsung’s folding phone hasn’t really taken off. We hardly hear anyone speak of them today.
It’s clear that Tim Cook has built a spectacular moat around the iPhone and its ecosystem has never been stronger. At the same time, I think it’s clear that Apple made the right choice in doubling down on the iPhone, even as it is developing newer products that will benefit from having a strong install base in the future.
That Apple has (correctly) bet that we are still firmly in the smartphone era should not be mistaken as Apple somehow being complacent and opting to rest on their laurels. It just means that Apple saw those competing products for what they are - distractions trying to move users prematurely beyond the smartphone because those companies themselves realised they lack a compelling smartphone offering.
To sum it up, while Apple isn’t perfect, I find their actions to be perfectly rational. Apple has clearly learnt their lesson from the 1990s and are making sure not to repeat those mistakes.
Continue to focus on the iPhone today, while working behind the scenes to figure out what comes next. When it’s time to cannibalise one in favour of the next, flick a switch and let rip.
This is business acumen at its finest.