We’re hearing more and more often that the iPhone 8 will be next year’s model rather than the iPhone 7s, but that’s not all. We’re also hearing a lot that this year’s iPhone 7 won’t be anything to write home about. In fact, Apple is supposedly moving from a “tick-tock” cycle to one with two minor cycles following one major cycle.
Analysts talk up the iPhone 7
When it became clear that the iPhone 6s cycle was going to bring Apple’s first ever year over year decline in unit numbers, analysts were quick to reassure investors. The general theme was: “Don’t worry. The iPhone 6s doesn’t matter because the iPhone 7 will be huge.” However, more and more indications point to a small incremental upgrade this year, so analysts are having to readjust their thinking on this topic.
Acacia Capital Partners' Peter Kinney declared in his first-quarter letter to investors that he is still concerned about the state of the global economy and the "yet unknown consequences" of the pandemic. Q1 2021 hedge fund letters, conferences and more However, despite this cautious mindset, the managing partner and his team are still finding attractive Read More
Despite the signs that this year’s iPhone 7 cycle won’t be much of an update, analysts are still convinced that it will be a decent cycle because it will mark two years since the huge iPhone 6 cycle. Many are also focusing on the large installed base that is still using models that are even older. But then when it comes to Apple, Wall Street tends to be very optimistic as much is expected of it.
However, it may make more sense to wait for the iPhone 8 next year, and not only because of the lack of major updates this year.
The iPhone 7 update that may give you pause
One of the biggest changes we’re hearing for this year’s iPhone is that Apple might ditch the standard headphone jack. Instead, the phone might require Bluetooth headphones or headphones that connect via the Lightning port. However, we’re getting a lot of mixed signals on this front, as we also heard recently that Apple may have changed its mind on this decision because of backlash from fans.
Indeed, ditching the standard headphone jack would render expensive headphones obsolete instantly and would likely cause people who otherwise might have bought an iPhone 7 to wait until a later model. They may even wait years—until they’re ready to replace their expensive headphones. What’s worse is that those who spend hundreds of dollars on headphones tend to be power users who really love to listen to music on their iPhones. It really wouldn’t be a good idea for Apple to irritate these users.
So if the traditional headphone jack does disappear in the iPhone 7, this would certainly be a good reason to wait until the iPhone 8 if the lack of new features isn’t enough to convince you to wait.
iPhone 7 versus iPhone 8
Now let’s preface this section by noting that the iPhone 7 hasn’t been revealed yet and the iPhone 8 is even further out. However, based on the rumors, we’re hearing that the iPhone 7 may come in three models: the iPhone 7, 7 Plus and 7 Pro. Depending on what the Pro version looks like, it might be enough to convince some users to upgrade. We’re also hearing that there could be a model with 128 GB of storage, which again might be enough of a draw to make this year’s iPhone 7 cycle a decent one despite the greater promise of the iPhone 8.
However, one much-anticipated feature that probably won’t make an appearance until the iPhone 8 next year is wireless charging. And then there’s the fact that next year marks the ten-year anniversary of the iPhone, which means there is immense pressure from Apple to make the iPhone something very special next year. Indeed, the company might hold back this year to ensure that next year’s models really bring a huge “wow” factor. This idea along might keep people from holding back this year just because smartphone replacement cycles are lengthening and why upgrade this year when next year might bring so much more?