Apple and Samsung's earnings both show that sales of expensive premium phones are down. Instead, people want affordable phones with good cameras and long battery life.
that "customers are holding on to their older iPhones a bit longer than in the past." Cook has also said macroeconomic factors come into play, particularly in places like China.
There also haven't been compelling reasons for regular consumers to upgrade. Enthusiasts might want the latest and greatest phones each year, but most people are concerned with camera quality and battery life. Cameras are becoming a harder selling point, because phones launched over the past several years already have really good cameras.
Phone makers know this. Apple launched its iPhone XR last September, a phone that excels at both camera quality and battery life but that starts at $749. The more expensive iPhone XS and XS Max have more colorful and brighter screens and even better cameras, but most consumers don't want to spend that much to get there. Meanwhile, Apple also still sells the iPhone 7 for $299.
Apple will face the same hurdles with its new iPhones expected this fall, but at least has two rapidly growing sources of revenue: its services business and wearables, the latter of which isThose businesses were good enough in Apple's June quarter to send the stock up more than 3 percent on the Wednesday morning after earnings — despite the lackluster iPhone sales.
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