http://blogs-images.forbes.com/ianmorris/files/2016/01/DSC_3076-1200×800.jpg
As most of us know, the iPhone 7 released a few weeks ago. One trending topic as of late has been the removal of the earphone jack in the iPhone 7. From a business standpoint, this deliberately excluded feature tells us a lot about how Apple incorporates planned obsolescence into their business plan.
As excellently explained in this blog post by Ziyue Wu as to how planned obsolescence relates to the iPhone 7 : https://blogs.ubc.ca/neilwu/2016/09/11/business-ethics-companies-should-impact-consumers-positively/,
Planned obsolescence means that a certain product will “become out-of-date or useless within a known time period.” The iPhone 7 is an excellent example, as stated before, due to its removed head-phone jack. This means that people whom bought the iPhone 7 and happen to lose their earbuds are prompted to buy more Apple specific products, leading to more profits by Apple. Also, people whom don’t have the iPhone 7 are encouraged to upgrade to it, due to the fact that they can be captivated by the exclusivity, and modern, more “current” feel of the new model. All in all, this strategy by Apple will result in people leaving behind their old models to pursue the iPhone 7, as they would believe that the old models are out of date and in need of upgrading. The consumer’s need to stick to buying Apple earbuds exclusively as the old jack no longer exists result in increased brand loyalty and recognition.
Another way that Apple has been applying planned obsolescence in their business model, is with the use of constantly updating iOS versions. The key thing about this is that Apple is constantly updating the iOS firmware so that it is in line with the most current iPhone and iPad models. Furthermore, the current models for the iPhone are improving technologically, which means that older versions simply cannot keep up. In other words, as Apple continues to pump out iOS updates, they ensure that the older iPhone models have a limited lifetime, resulting in customers purchasing more iPhones. In fact, there is even a financial plan for Apple consumers to pay a certain fee each month and then receive the newest iPhone model at the end of each year.
Finally, another example of Apple’s planned obsolescence is that they have implemented tamper-proof screws to Macbooks. This prevents consumers from upgrading their machines themselves, which prompts them to upgrade to the next version sooner. Furthermore, these users would have to rely on expensive Apple repair services as the screws would prevent them from being able to repair the system themselves. All in all, the planned obsolescence business model that Apple upholds no doubt results in massive profits for them, as seen in their Annual reports. However, the downfall is that it doesn’t operate with the customer’s wants in mind, resulting in potential unhappy customers.
(Word count: 439)
References used:
https://actions.sumofus.org/a/planned-obsolescence-is-why-apple-isn-t-a-green-company
http://www.digitaltrends.com/computing/apple-iphone-7-planned-obsolescence/