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February 23, 2017 04:00 pm

Tech Breakthroughs Take a Backseat in Upcoming Apple iPhone Launch

Stephen Nellis, reporting for Reuters: The new iPhone is expected to include new features such as high-resolution displays, wireless charging and 3-D sensors. Rather than representing major breakthroughs, however, most of the innovations have been available in competing phones for several years. Apple's relatively slow adoption of new features both reflects and reinforces the fact smartphone customers are holding onto their phones longer. Timothy Arcuri, an analyst at Cowen & Co, believes upwards of 40 percent of iPhones on the market are more than two years old, a historical high. That is a big reason why investors have driven Apple shares to an all-time high. There is pent-up demand for a new iPhone, even if it does not offer breakthrough technologies. It is not clear whether Apple deliberately held off on packing some of the new features into the current iPhone 7, which has been criticized for a lack of differentiation from its predecessor. Still, the development and roll-out of the anniversary iPhone suggest Apple's product strategy is driven less by technological innovation than by consumer upgrade cycles and Apple's own business and marketing needs.

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