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3 Reasons Why My Millennial Friends Are Not Buying the iPhone 7

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The iPhone 7 is here, but competition is steeper than ever for Apple (AAPL - Free Report) .  Samsung and other cell phone manufacturers are nipping at the heels of the Cupertino giant, and investors have multiple reasons for why Apple may run into some obstacles with regards to holding onto its large market share in the smartphone industry. 

Improved battery life, water resistance, more memory, and a better camera make the iPhone 7 a notable upgrade from the iPhone 6s.  However, there are reasons for why many of my iPhone-wielding friends (who are in their 20s) will be opting out of upgrading to the iPhone 7.

No Headphone Jack

Most people have heard about this by now, but I’ll say it anyways.  The iPhone 7 does not have the standard 3.5mm audio jack that you’ve been accustomed to seeing on pretty much every smartphone over the last decade.  The device does ship with wireless headphones called AirPods, and they also come with an adaptor, but it has a rectangular Lightning connector. 

The problem that arises with this is that users will not be able to charge their phones while listening to music (or making calls) with wired headphones that have a Lightning connector.   You could get a dongle that lets you use wired headphones while charging, but that’s another $40 dollars which you’d have to shell out.

Furthermore, most headphones use 3.5mm jacks to connect, and this is still a very popular way of listening to music since you get better sound quality without having to worry about the battery life of your headphones.  While Bluetooth technology can help in dodging problems associated with a jack-less iPhone 7, sound quality is often sacrificed.  This is a big deal for some of my millennial peers, and it is a viable reason for why they won’t be upgrading to Apple’s latest flagship device.        

Looks like the iPhone 6                                     

Now, the iPhone 7 is a great phone across most specs and it is also a clear upgrade from the iPhone 6.  We’ve established this, and while the internals are different, Apple failed to give the exterior a complete makeover.  In fact, the iPhone 7’s height, width, and depth are exactly the same as the iPhone 6s (5.44 by 2.64 by 0.28 inches).  The Lightning connector is in the same place, but the phone now sports a home button that’s no longer physical.

Apple made a bold choice by going with a design that is very similar to its last smartphone, but users stand to feel disappointed by the lack of design change.  In Naperville, a town close to where I live, everyone seems to have an iPhone.  I was hanging out with a group of my friends in Naperville over the weekend and I asked them if they were excited about upgrading to the iPhone 7. 

Not surprisingly, most of them were put off by the fact that the phone doesn’t look like much of a sequel to the iPhone 6 on the surface.  They are hardcore Apple fans, but they worry about the phone not feeling or looking like much of an upgrade when they hold it.  Like my friends, I also appreciate the aesthetic physical qualities in any new phone or device I buy.  I also admit that when I upgrade, I do take pride in receiving something that looks like a distinctly unique product.

Waiting for the iPhone 8

While the iPhone 7 boasts new hardware upgrades compared to its predecessor, the device seems like more of an incremental upgrade as opposed to being a big step forward for Apple.  Some speculate that the iPhone 7’s similar design to the iPhone 6 shows that Apple is planning on making bigger changes for its next phone. 

This could give people reason to wait longer, and this is troubling since there is an ongoing trend of smartphone users waiting longer before replacing their phones.  Apple has previously done well in getting its users to upgrade their phones to the next version available, but it may now run into a problem that many other cell phone manufacturers face.   

Yesterday, my friend said that she is waiting for the iPhone 8 because her iPhone 6 is already great.  The specs of the iPhone 7 didn’t convince her that an upgrade was worth it, but she heard that the iPhone 8 would boast a large screen that takes up the entire front of the phone.  I have also heard this rumor and I think that this would definitely be an innovative feature since it hasn’t been tried yet

2017 will be the 10th anniversary of the iPhone, and many speculate that Apple will really kick things up a notch when it reveals its next phone.  Although the timeline dictates that this would be the time where Apple releases the “s” version of its phone, it may skip that version altogether, similar to how Samsung jumped right from the Galaxy Note 5 to the Galaxy Note 7.

Bottom Line

I am not saying that millennials won’t buy the iPhone 7.  I am simply relaying my experiences to show the thought process behind why some younger people will choose to opt out of upgrading their iPhone 6 to Apple’s latest phone.

From its simplicity to its exclusivity, there are many things that millennials appreciate about the iPhone and Apple's brand.  Unfortunately, there are a few let-downs which could negatively impact how Apple’s latest phone resonates with younger consumers.  Right now, Apple is a Zacks Rank #3 (Hold).

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