Karm City

Apple deflates release cycle, increases demand

Asymco just published an analysis that suggests Apple’s deferred iPhone release has actually boosted current-model iPhone sales. A great observation.

Apple’s previous annual release cycle reminds me of the notion of monetary deflation. If the price of an item is continually dropping, nobody will buy it because they’ll wait for the price to hit rock bottom. If the release cycle of an iPhone is always annual, most people will weigh the option of waiting until June for the next iteration, or buying one at that moment.

Now, with a wrench thrown into the wheel of Apple’s consistent release cycles, many who were playing the waiting game couldn’t any longer.

Typically, deflation obliterates an economy. In Apple’s case, it’s actually boosting business. I suppose if there’s one thing Apple does wrong, it’s obey the rules of economics.