Parsing the latest Apple earnings.

Business Insider is not my favorite source for Apple news, they are one of those sources who have a pretty obvious anti-Apple bias, and still post advice on how Apple would be so much more successful if they did business more like Dell, HP, and Microsoft.  

This piece sticks to the facts, though.    

The hype for iPhone 8 has definitely slowed down current handset purchases, but one thing that seems to be missing from a lot of analyses is the dramatic change in how carriers offer handsets in the US since the iPhone 6 introduction.   Most of the US carriers are no longer fully subsidizing phones, which means that the old cycle of automatically getting a new phone when you are eligible is no longer a factor.  

Personally, I’m overdue for an upgrade.   I want a better camera, I want the M2 motion processor so that I can include stair climbing in my Health app, and I want force-touch and Apple Pay.   However, now, it’s much more confusing to buy a new phone, so I’ve held off on replacing my iPhone 5S, which still runs iOS 10 like a champ.   Do I wait for the new announcements or get something now?   Should I wait until WWDC at least?

Let’s face it, most of our devices are good enough these days.   If it isn’t effortless and free to upgrade, we aren’t going to do it without a substantial benefit for our trouble.   The market is different now from the days of explosive iPhone sales growth, and I think analysts are overlooking Apple’s ability to sell some of their devices twice via their own phone plan and high-quality refurbishing program.

So, I’m not panicking about the stock, even if the price goes down, Apple has the lowest P/E ratio in their sector and a pretty solid and profitable business.   But I still can’t make up my mind about when I’ll replace my current phone.

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