What Display Daily thinks: Let’s start with the easy stuff. Apple didn’t get much right on the Vision Pro other than some very cool but expensive technology that doesn’t leave much room for a progression in similar product lines because it was never clear what the market for the product was going to be.
On foldables, Apple may not need to be a first mover and can afford to wait it out until the technology matures enough, but there is an inflection point, a time when prices will come down just enough to create an upswing in adoption. Looking at the new, and unfortunately named, Samsung Z Fold Special Edition, the design is thinner and lighter, and the crease less noticeable. The price is still high but Samsung is rumored to be preparing a tri-fold for next year, with heavy competition from Chinese smartphone makers. Foldables are not niche. It may take another five years, but they will be mainstream. There is enough anecdotal evidence in the reactions you can find online in forums, on social media, and among enthusiast tech sites to justify that sentiment.
Looking at the data, Apple’s unlikely to have an “iPhone moment” again. Too big to fail and too big to innovate. So, maybe it’s best to think of Apple as maintaining the status quo. That leaves opportunities for competitors.
Apple’s Innovation Landscape: Insights from Counterpoint Research
Counterpoint Research offers a nuanced perspective on Apple’s current innovation strategy, responding to recent skepticism over Apple’s approach to incremental iPhone updates, its position in emerging technologies like foldable phones and generative AI (GenAI), and its overall ecosystem-driven strategy.
Although Apple’s iPhone 16 series has been critiqued for lacking groundbreaking new features, Counterpoint suggests that Apple’s innovation is rooted not only in product enhancements but in strategic ecosystem development. Rather than relying on dramatic hardware changes, Apple is creating a “personalized intelligence system,” integrating user-centric innovations at the application level. This deepens user engagement and loyalty within Apple’s ecosystem.
Apple’s conservative approach to the foldable smartphone market also appears to be a strategic decision rather than a missed opportunity. Despite heavy marketing efforts from competitors, foldables remain a niche, accounting for only 1% of global smartphone shipments in 2023, with projections reaching just 2% by 2026. Thus, Apple’s anticipated entry into foldables by 2027 aligns with the technology’s gradual growth, allowing the company to focus on refining this segment for mass-market appeal.
In terms of GenAI, Apple has taken a different approach, cautiously integrating GenAI within its ecosystem rather than rapidly adopting it like some OEMs. While other brands are exploring GenAI features without clear monetization paths, Apple is developing “Apple Intelligence” to create a highly personalized, intelligent experience across devices. This strategy emphasizes user privacy, which is a core brand value, though it poses certain challenges in regional rollout and feature development.
Beyond the iPhone, Apple has found success in re-imagining and scaling other product categories, particularly in wearables. Apple Watch has introduced groundbreaking health-tracking features, such as ECG monitoring, sleep apnea detection, and hearing assistance via AirPods. These features have transformed the Apple Watch from a lifestyle device into a trusted health companion, fostering consumer loyalty. Apple’s Vision Pro headset further underscores its commitment to advanced engineering and user-centered design, marking it as a leader in innovation.
Overall, Counterpoint’s take is that Apple’s innovation is more than introducing first-to-market features. It lies in executing at scale, integrating devices within a cohesive ecosystem, and delivering exceptional customer experiences. With a record-breaking 2 billion active devices in its installed base, Counterpoint believes Apple continues to add value through a deliberate and calculated approach to emerging technologies.
