Admittedly, I was one of the people who ridiculed the outcome of the recent Apple event, after Labour Day, when they launched their iPhone 7. Apple confirmed that the iPhone7 has no audio jack. There were no real surprises in the launch for me, even though at the time, I was in the middle of the bush, at a work conference.
What I did immediately react to, was the cost of the headphones, that are designed to go with the iPhone7. The Apple bluetooth headset, dubbed AirPods, will cost you an additional $159, over and above the phone!
I immediately tweeted my disapproval, but one thing I know, is that many Apple fans will buy these very wireless headsets, without any hesitation. Apple is no longer appealing to me as a product, but they know their target market. I left the Apple ecosystem after the iPhone 4S, and what I do know is, the very same reasons I left, are the same reasons a lot of people love the Apple offering!
While I look at Apple as a terrible product/service experience for me, I think it is a fantastic investment for me, and possibly for you… I am seriously going to be loading up on some Apple shares, in the next investment tranche I make, because I am loving their business model.
I bought one share of Apple, not so long ago, but it was a symbol of a beginning of a new era. So while I ordinarily would not recommend buying one share, I had commited to doing it and I did. Add that their dividend yield is at 2.1% today, it beats a whole lot of negative interest rates now prevalent in developed economies.
Consider this Business Insider article, Apple is moving beyond smartphones by creating a world where you never take off your headphones, and you will see what I mean about Apple’s bigger picture. Further to that, Apple is also moving to a subscription plans revenue model, including how you aqcuire the new iPhone 7.
You either buy the iPhone7 for cash (at around $649), or get your hands through a monthly payment plan of $32 a month, over 24 months, via Apple. You will no longer have the option of a subsidised price via a two year carrier contract!
I am not a financial advisor. I did miss taking a bite out of the Apple, before the rush began with the renewed energy brought by Steve Jobs, Ive and the rest of the Apple team. I used to make a joke about how buying Apple shares for my kids would have made a better ‘present’, than buying them an iPhone. Now, I feel like that moment has come again, only this time, I am not missing it.