Hardware

“I wrote that Apple was in its middle age in 2018, when the company was 42 years old, a solidly millennial definition. My argument then was that Apple was increasingly — and rightly — behaving like an incumbent in a market that was no longer growing. That meant that future iPhone growth would come from (1) more expensive iPhones, (2) selling more devices to existing iPhone users (AirPods, Watches, etc.), and (3) accelerating the revenue it derived from services for iPhone users. That is exactly what the company did over the ensuing few years...”

“In yesterday’s Update I wrote that I believed that Apple would surely raise prices this year; that $999 iPhone Pro is now $177 cheaper than in 2020 in real terms, and Apple is very adept at capturing the value it creates.”