There’s One Thing Apple Is Really Good At: Selling iPhones. There’s Another Thing It’s Not Good at All: Creating Mid-Tier Models

Apple has long been preoccupied with creating a mid-tier iPhone. This quest has been marked by several failures and repeated attempts to discover a successful formula, which may, in fact, not exist. Bloomberg’s Mark Gurman predicts that the rumored iPhone 17 Air won’t succeed commercially. This model seems destined to occupy the space of the in-between iPhone, a segment that has historically struggled to find traction in the market.

You must consider the factors at play to understand why this is the case.

The mid-tier iPhone. Apple has yet to crack the code for the mid-tier model. Since the launch of the iPhone 12, the lineup has included a standard model, a variant of that standard model (such as the mini, Plus, and Air), and two Pro versions.

Except for the mid-tier model, all the main models have performed impressively in sales. However, the mini and Plus iterations haven’t fared well. While it’s uncertain what the fate of the iPhone 17 Air will be, it currently appears to be a gamble.

Context. To grasp the challenges the mid-tier iPhone faces, it’s important to understand the market space it aims to fill. The goal is to create an iPhone that isn’t quite a Pro model, yet offers something distinct from the standard model.

The issue arises when trying to provide a distinctive feature. Essential specs often get sacrificed. For instance, the iPhone mini compromised on battery life, while the Plus models had to adjust pricing. There are concerns that the camera in the future iPhone 17 Air may also not be good enough. These are significant trade-offs.

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What’s that all for? The phone industry has been narrowing and segmenting its offerings for years. However, market analysis shows what clearly works: standard (cheapest) and premium (most expensive) models. The iPhone Pro model doesn’t entirely fit between the two.

Saturation. The smartphone market is reaching saturation. While this isn’t necessarily bad, it indicates market maturity. Manufacturers want to boost sales in a slowly growing market but face a significant challenge. All consumer needs have essentially been met.

Efforts to capture market share with features that don’t really address genuine consumer demand, such as ultra-thin phones, are raising concerns. This is especially true now that battery technology has improved, with consumers prioritizing battery life.

Only the sales performance of the iPhone 17 Air and Samsung’s Galaxy S25 Edge will clarify the current market uncertainties.

Image | Daniel Romero

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