Poor sales in China forced Apple to shrinks its revenue expectations for the first time in 16 years. China’s economic growth slowed down tremendously after the government introduced new measures in order to limit its rapidly-increasing debt. The moved seems wise at first but the effects seem to be mostly negative. The fact that iPhone sales decreased is one of the major signs that the Chinese economy is struggling.
While the move may have been encouraged by poor sales there may be several causes that justify the numbers. High prices, better alternatives and consumers that cling to their older devices may be the prime reasons for lower sales.
Apple is already hard at work in order to refresh the iPhone and make it more attractive. One of the latest rumors claims that Touch ID, which was removed when the iPhone X was launched, may return this year in the form of an in-display fingerprint sensor. Other devices are already using one and it is likely that Apple will try to either develop its own version of the sensor or find someone other than Qualcomm that could make it instead. Apple may decide to use the sensors offered by the Qualcomm if the lawsuit between the two companies will end in a convenient settlement.
A popular source believes that the next iPhone will also make the jump to USB-C. The port is already available on the iPad Pro and the change would allow users to buy their favorite accessory without the need to use an additional dongle. Cheaper accessories will be also compatible with the iPhone and this will make the device more attractive in countries where people aren’t willing to pay extra fees for premium Apple accessories.
With more flagships surfacing each year Apple will have to improve considerably in order to remain competitive. iOS on its own is no longer enough and real innovation is needed in order to convince new buyers.