Wednesday, September 14, 2016

i-Phone

Written by: Rachel Reyes

The new iPhone 7 lacks something that the tech world thought it’d always have: a headphone jack. To give a little background information, Apple decided to go against the cell phone norms to create a slimmer, more compact phone that is also waterproof and less prone to damage. Their new product to make up for the removal of the headphone jack is wireless headphones. Real fancy, right? But as we know in the Apple world, fancy equals expensive. Apple falls under the the category of a microeconomic orientated company, for they have had to determine what features will benefit their consumers across the globe within, or just crossing, each individual's budget. But right now, they are pushing it for the middle class. In my opinion, the opportunity costs of buying the iPhone 7 outway the new and innovative features. A large headphone industry known as Beats sells headphones that go for sometimes hundreds of dollars. Those who have invested in a sweet pair of these headphones are now looking at a serious problem with the iPhone 7. Although the phone includes an adapter, it will in my opinion make the phone more bulky. Too many wires  cause a bit of a commotion. Personally, my beats headphones are worth too much to never use again normally on my cell phone, and I think many owners might agree. If the iPhone 7’s main selling point is having a sleeker and slimmer design, why would consumers buy it only to have bulky wires bulging out of their phone every time their use their headphones? This is where consumers have to stop and think, “Is giving up my love for wired headphones worth having the newest cell phone?” This will be the opportunity cost that many will keep in mind when deciding their purchase. “It’s a big shift for us and for the consumer,” Skullcandy's chief commercial officer Sam Paschel says. “We truly believe it’s going to trigger a repurchasing cycle around headphones, with a very fast and very large shift to Bluetooth.” Apple, however, will most likely gain from this newest technology no matter what. It has been seen throughout the years that all new Apple models thrive instantly because many decide that the newest technology is the most important the have. Apple owns the company Beats which I mentioned above who makes numerous models of wireless headphones. If more iPhone 7s are sold, most likely the sales of Beats wireless headphones will increase, as well as the Apple wireless headphones. "So I think it’s really, at least in the near term, maybe 12-24 months, going to be relegated to fairly high-end stuff. Over time the cost of that technology is going to come down, just like it always does,” says Skullcandy Director of Engineering and Innovation Jeff Hutchings. Apple will continuously have substantial economic growth as their technology advances yearly. It’s highly possible many consumers will look past the negative opportunity costs due to the fact that the newest technology is always a fan favorite.





Bogart, Nicole. “iPhone 7: What an iPhone With No Headphone Jack Means for Consumers”. Global News, Corus News. 7 September 2016, http://globalnews.ca/news/2924943/iphone-7-what-an-iphone-with-no-headphone-jack-means-for-consumers/.


Quotes from:
Dunn, Jeff. “Apple is killing the headphone jack — here's how headphone companies are preparing for a total hardware revolution.” Tech Insider, Business Insider. 9 July 2016. http://www.techinsider.io/how-apple-killing-headphone-jack-affects-headphones-iphone-7-2016-7.


Video:

Apple. “iPhone 7 and iPhone 7 plus in 2017 seconds.” YouTube. 7 September 2016. https://www.youtube.com/watch?v=GeoUELDgyM4.

44 comments:

  1. I think that the opportunity cost of investing in a new Iphone is quite high. On the other hand if you have an Iphone older than a 6 or a completely different kind of phone I think it's worth investing in due to the other changes that have been made, such as the camera or increased battery life.

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    2. I would have to agree that if your iPhone is a generation 4 or less, it is time for an upgrade. However, I don't think it would have to be the iPhone 7. The iPhone 6 is still an excellent phone for a cheaper price than the seven. Unless you are really in search of a phone with an amazing camera or received some Bluetooth headphones for Christmas, then there really isn't a need to invest so much money into a phone that has almost the same features as the older model.

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  2. While in the store looking at alternative options to I phone, I realized another phone company to have a phone which reminded me of the "new" I phones ideas. The Motorola phone was just like the I phone 7 where it had no headphone jack, long battery life and a much sleeker design than my old I phone 6. This made me curious in recognizing that apples "innovative idea" was actually just their company's ability to market at a level far beyond that of their competitors. People are going to buy the new I phone no matter what, but they wont recognize that apples new ideas have been implemented prior to the release of the I phone 7.

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  4. While I agree that it is annoying for the iPhone to not have a headphone jack, I simply feel like they are performing the inevitable removal of the headphone jack. The headphone jack dates back many decades and with new technology there is more potential for better sounding audio. This sudden shift in audio innovation will force headphone companies and other phone companies to ditch the headphone jack for wireless or lighting connecting headphones. Apples marketing tool has always been trying different things, which in the end become the norm for the technology industry (Like when apple created the iPhone 1 without a keyboard and when they opened the tablet market). I am one of those who preordered the iPhone 7 (although it is not coming to my house due to my determination to receive the Jet Black color), and am looking forward to the new technology; but, in the end the removal of the headphone jack will take a white to get use to.

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  5. I think that the opportunity cost for the new Iphone is a little to high, especially if you already own a semi-new phone such as the Iphone 6 or maybe even 5. Even though they have adapters for wired headphones, what if you want to charge your phone and use your headphones at the same time? I personally wouldn't want to invest the extra money to buy a wireless pair and let my old ones go to waste.

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  6. I think it's interesting how one company can have such an impact on society. Looking back to when the iPhone switched chargers, the world reacted in a similar way. For example, most hotels had finally upgraded their rooms to contain clocks with an iPhone dock, just to have them be rendered useless by the next year. People were confused as to why it was necessary to change in the first place. But the world adapted, and not only was Apple able to make even more money selling new chargers, but other companies such as charger company Anker were able to increase their sales. I agree that consumers and companies alike will have to weigh the opportunity costs of producing or using wireless headphones, and that over time people will become more willing to accept the idea.

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  7. I agree that my Beats headphones are too expensive to stop using forever, but Apple is creating a product that possibly models the inevitable future, where everything will be wireless. Therefore, the opportunity cost of getting an iPhone 7 is worth it and should be taken advantage of. For those of you who don't know, however, the Bluetooth earphones do not come with the phone. A 256 GB model costs 870 dollars and then you have no choice but to buy the 160 dollar wireless earphones. That cost adds up. The swag of having the latest phone is worth the money though.

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  8. I agree with you Rachel that the opportunity cost for the new iPhone is much higher than the iPhone itself. Not only will you not be able to plug in your beats but now when someone passes you the aux what are you supposed to do? I doubt people with the iPhone 7 will always have their special adapter with them so they will be stuck. Not only will this change the headphone industry but now most cars and speakers will have to accommodate for the change by moving to Bluetooth. I too personally wouldn't invest my money for the newest technology.

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  9. I totally agree with Rachel on this blog there is to many downfalls of the Iphone 7 to buy it. The latest Iphone is a little thicker than this one but this one doesn't have a aux cord connector. I understand that everything is upgrading but is it to early to go all Bluetooth? I personally think it is because the average Bluetooth is too expensive for the average person.

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  10. I agree with your statement on the fact that Apple will have economic growth no matter what. Apple has made significant advances in technology over the past five years which has significantly boosted their economic growth during this time. In 2010, Apple sold approximately 48 million iPhones, and in 2015 they sold over 230 million of them. During this time, Apple made major changes to their phones such as the charging port as well as the size of the iPhone. These changes have only resulted in positive economic growth for Apple when they were made. I don’t think that removing the headphone jack will be any different. Upgrades in technology have increased the economic growth at Apple and I think that iPhone 7 will continue this upward trend.

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  11. I agree with your opinions on the new iPhone 7 and how Apple will always be a popular company. However, I disagree with what you wrote about the headphone jack. As technology keeps improving, each company has to keep up with each other. Samsung created the water-proof Galaxy and Apple wanted to match that with the iPhone 7. But, in order to create even more sales and technological improvement, they had to create something even more different. I think more headphone companies will be adapting to wireless now for Apple's latest technology. New technology might be difficult to adapt to at first, but people will become used to it after a while.

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  13. I think that there is an opportunity cost for the business that make headphones as well. I understand that it was this was bound to happen one day. Is it too soon? This new feature will cause other businesses to rush to get new Bluetooth headphones in stores for people to buy. The opportunity cost for the businesses would be that they are making more Bluetooth headphones rather than regular headphones.

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  14. I agree that Apple will almost never cease to make money on a new product. However, I also think that headphone companies will also benefit from this change because consumers will come rushing to them hoping for a nice pair of wireless headphones for their brand new phone. But, I disagree with the fact that the extra cord to use out of the charging port will be an inconvenience. If you really need to use that pair of headphones that you paid hundreds of dollars for, I think it is definitely worth it to have a small extra cord be there. I think overall this will benefit both Apple and companies like Beats and Skullcandy because one purchase will ultimately result in another. I don't think the opportunity cost is too high in this situation, as I see it more benefiting the companies and the consumers with only small inconvenience issues.

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  15. I agree that Apple will almost never cease to make money on a new product. However, I also think that headphone companies will also benefit from this change because consumers will come rushing to them hoping for a nice pair of wireless headphones for their brand new phone. But, I disagree with the fact that the extra cord to use out of the charging port will be an inconvenience. If you really need to use that pair of headphones that you paid hundreds of dollars for, I think it is definitely worth it to have a small extra cord be there. I think overall this will benefit both Apple and companies like Beats and Skullcandy because one purchase will ultimately result in another. I don't think the opportunity cost is too high in this situation, as I see it more benefiting the companies and the consumers with only small inconvenience issues.

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  16. Your connection of Apple and Beats was great. It makes it obvious that Apple is just trying to make more money instead of making a better phone. They may say that the new Iphone with wireless earbuds is "better" even when the only difference is the wireless part. Headphones with wires aren't that big of a deal anyway. I agree with you that there aren't even pro's to the new phone to spend hundreds of dollars on it. Plus I'd lose the new headphones in a few days.

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  17. I half agree and disagree with this. I believe that the no audio jack is a cool concept but the world is just not ready for this phone. In the time we live in a lot of people still have wired headphones and only a handful of people have Bluetooth headphones. Now if we were to travel 2, or 5, or even 6 years into the future were wired headphones maybe more obsolete than it would be a smart decision to release this phone, but Apple is just being Apple and they want to start making profits and don't really care about the inconvenience to their consumers.

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  18. I agree with your last statement that Apple will have an economic growth after the release of this product. Which for Apple this will most likely always happen. With any product they plan to release, there will most likely follow with a large economic growth. In addition the opportunity cost will not be a problem for this new iPhone, I say that because when the 5 through 6 came out people were more willing to invest in new charging cables, docs everything from Apple and other companies. So with that being said, yes having to buy more headphones is going to be a pain, but it will help hopefully have a positive effect on both companies. Because of the change in the iPhone 5 through 6s plus this one should not be any different. With each new feature that the iPhone 7 will carry, people will be too invested in those and it won't bother them to have to buy a new pair of Bluetooth headphones. Overall, with the release of the new iPhone there will be economic growth for Apple and headphone companies.

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  19. For everything that you said, I have to say that every point you made was good, but you forgot that about how many people are already mad at Apple for taking away the headphone jack so they can continue to make flatter and flatter devices. From what I personally have seen and heard, many people who are even long time Apple fans have said that they won’t be upgrading or they may head to the Android market. Now in the post you say, and I quote, “But right now, they are pushing it for the middle class.” Now middle class may have a different meaning to many people but most actual middle class families do not want to pay over 100 dollars for earphones just because a company decided to make a device thinner. But families want to pay for something that can get a lot of use, and a 5 hour charge life earbud is not that great when it comes down to lifetime use with a cable.

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  20. I completely agree that Apple will definitely see Economic growth, but I think it's much deeper than just an innovation that Apple decided to put forth. The transition to wireless is an attempt to further monopolize the headphone industry for Apple. As always, Apple will control the market share for mobile phones this fall with the release of their latest development, the iPhone 7, and are essentially forcing their users to purchase their proprietary accessories. Most of the population ill likely be unaware of many other wireless offers for headphones, except for Beats, which are (guess what) also owned by Apple. It also seems likely that the headphone adapter which you mentioned will not be included with the phone. In the end, Apple will be profiting much more than people realize, and this will likely be the biggest sales quarter in their history.

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  21. Personally, I think the Iphone 7 is worth the opportunity cost. My Iphone 6 is already breaking down, and think it is time for an update. I agree that Apple will have economic growth from this release, because the new innovations will be the face of technology and how much it is advancing. A few releases ago, Apple switched from the thick, wide charger plug to the skinny, narrow charger. At first people thought this was weird, wouldn’t like it, and would have to buy new accessories, but it turned out to be a fan favorite; which is what I think will happen with the headphone jack. Since many of the availability of the pre-order for Iphone 7 some are already put on back order after only being out for a week. The demand for this new piece of technology is already high and overtime will only get higher. Therefore, the opportunity cost of not having a headphone jack is made up for by the adapter that is given with, advanced camera, and the increasing demand for innovative technology.

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  22. I totally agree that the I-Phone 7 isn't worth the opportunity cost. Just because it has a few more features that everyone is looking for it's so much more expensive if you listen to music a lot or spent a lot of money on headphones just like the beats as you said there goes over $300. I do also agree with what Sam Paschel said with the quote that you put. It will be a whole new industry of headphones and earbuds but it just means we have to go keep buying more and more to keep up with the technology which is expensive.

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  23. Is the new technology really that important? Or is the loss of the headphone jack just a distraction so that the iPhone 8 won’t get dissed for it when it releases? Maybe the loss of the headphone jack will start the decline of apple phones and they’ll eventually go out of business. Or they’ll do what Samsung did with removable batteries and expandable memory and bring it back.

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  25. While the loss of headphone jack is unfortunate, perhaps this is just another stepping stone to a more advanced feature. Eventually this technology will likely be cheaper and more efficient as stated in the article. This isn't the first time a change has been made in a market place which harmed products in the short term but improved them in the long term. For example in the wake of the Oil Embargo, new fuel and safety standards were set for car manufacturers in the United States. As a result new models were simply awful leading to competition from foreign companies. However today as a result of those standards our cars are more efficient and safe. It's my prediction this will lead to the improvement of wireless headphones.

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  26. People aren't just going to stop buying Apple products, there are people who live and die by Apple. However, with the newest Iphone coming out and a large list of so called "improvements" is Apple finally taking smartphone technology too far? With the discontinuation of the headphone jack it is leaving some consumers to question why fix what isn't broken? Just about every other smartphone has a headphone jack and people have no complaints. With Apple testing these new waters, it leaves me to wonder just how many more "improvements" does Apple have to make before they begin to lose more customers to Android phones, which are a much more customizable, computer like software.

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  27. I agree with Mikey on his point about how many more "improvements" Apple will continue to make on their newest IPhones. I went into further research after reading your blog and found some more interesting information. As in the previous years, Apple would give each customer a pair of headphones in their box. Apple is now selling the blue tooth headphones separately for $159.99 that are easy to lose in a second. I think that Apple will eventually start to lose their loyal customers due to the outrageous changes they are making.

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  28. How about we start a company that knocks off Apples wireless head phones and sell it for half the price... we'd be rich. I always thought Apple did a great job of keeping things simple and easy to use, but with the new IOS 10 update and with what the new Iphone 7 features it seems as if Apple isn't as user friendly as it used to be and I really wonder if it will bring the company down. As a consumer of the Iphone 7 I along with many people will probably go out and get the Iphone 7 because well, it's "The Iphone 7", but I don't think making an already expensive product more expensive is going to do a good job of reaching out to new horizons or to people who have never had the product before.

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  29. The opportunity costs of buying the iphone 7 is not that tremendous in my opinion, however the company Apple probably will see this tradeoff of no headphone jack and a profit. As indicated in the article, the iphone 7 will not have a headphone jack which means people will start having to buy wireless/bluetooth headphones to go along with their new phone. For those who are users of the iphone 7 may start to see themselves having to repurchase new sets of these more expensive headphone because they may lose them - having two small things that aren’t connected for your ears seems easy to lose. This is good to Apple as they will make profit off the phone itself and any wireless headphones that they sell. I think that their marketing strategies are good, and it benefits the new look of the iphone, however the tradeoffs for those buying the iphone 7 may not be as excited as Apple in the beginning.

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  30. Yes, it is bizarre that Apple would suddenly decide to get rid of a feature as significant as the headphone jack. However, eventually this idea may become the norm. Each new cell phone model has some new feature that will eventually become a norm for all future products. While it will cause many people to go out of their way to buy these specific headphones needed for this phone, eventually people will adapt and all headphones will be made in this way. I don’t think that many people are attached to one specific type of headphone, I think in the long run it will be alright. However, as of right now, I can see how it may be difficult for people to adjust to this. Many people have multiple pairs of the typical earbuds that plug into phones. They are very easy to find and typically not to expensive. So yes, it would be a pain to have to go buy special headphones when you already have plenty of perfectly fine headphones right in front of you. So yes, this event may be a fairly drastic change for some people, but with enough time, I think everyone will slowly begin to adapt to it.

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  31. The new iphone 7 is also going to have a large impact on the headphone industry as well. In the next few years, or even months after the iphone 7 comes out, headphone brands will surely switch to making their headphones wireless. I feel that although the new headphone jack seems odd and unfamiliar now because it is a little ahead of the times, once everyone else catches up we will look back and think how weird it was to have wired headphones. For example, when apple switched to a new charger everyone was outraged, however now, the new charger is the norm, and the old charger is outdated and rarely used. I think it just might take some adjustment. Right now the opportunity cost may seem high, however in a couple months, it will be much lower.

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  32. The new iphone 7 is also going to have a large impact on the headphone industry as well. In the next few years, or even months after the iphone 7 comes out, headphone brands will surely switch to making their headphones wireless. I feel that although the new headphone jack seems odd and unfamiliar now because it is a little ahead of the times, once everyone else catches up we will look back and think how weird it was to have wired headphones. For example, when apple switched to a new charger everyone was outraged, however now, the new charger is the norm, and the old charger is outdated and rarely used. I think it just might take some adjustment. Right now the opportunity cost may seem high, however in a couple months, it will be much lower.

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  33. I don't know about you, but I think Apple is just copying Samsung. Yes, Samsung definitely didnt't think of the idea to take away the head phone jack, However, they did think of the idea of making a slimmer more compact phone, and making it waterproof. Yes, Apple is a worldwide famous company and even if they copy some ideas, they will get sales because they are Apple. In society today people are all about following the trends and following the taste of society, therefore, the iPhone 7 is going to be a great new trend that many will buy just so they can say the own a iPhone 7. In my opinion, Apple is nothing new in technology besides the lack of head phone jack, but that;s the thing about Apple, they will always attract customers to their new products no matter how "old" the technology may seem.

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  34. The release of the new iPhone 7 and the features that come with it was also very disappointing to me. Although Apple says that this phone will be more sleek and less damageable, I believe that they are still going down the wrong path. I agree that the opportunity cost of getting this phone is outweighed by the cons. Yes, you may be able to have a sleeker and less damageable phone, (just like every other new iPhone there was before this one) but you are also losing key features such as the headphone jack, and the ability to choose whatever headphones you want to use simply. Instead you must either get wireless bluetooth headphones, Apple EarPods, (which are priced over $100) or have some sort of complicated adapter system with a bunch of cords. I think personally that Apple should stop trying to advance technology so quick and not rush into the future, because no one is ready yet. There are many people like me that prefer the simplicity of regular earbuds and the simple insertion into the headphone jack. Along with this new upgrade, aux cords in cars will also begin to become extinct, which I always found way easier than bluetooth. It especially worries older iPhone users like myself, when I hear rumors that they are slowing/shutting down older iPhone systems, forcing people to upgrade to the newest and waste their money on a phone that is worse than the older version. Apple is just planning to use this new iPhone release to make more money off the consumers, in my opinion, which I find very wrong. Not everyone wants to have the newest things and not everyone can afford them either, which is why Apple should not continue down this path they have with the iPhone 7.

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  35. Apple has set successful trends in the past so they're not afraid to experiment with their consumers, especially if that means more money in their pocket. The likely reality is that people will still buy the new phone regardless of the changes. In terms of opportunity cost, some people may see the older models of I-Phone more deserving of their money rather than spending that money on the protection improvements when it's something a good I-Phone case can accomplish. I agree that the change is for the worse, being someone who listens to music and wears earbuds/headphones avidly. However, that doesn't change the fact that Apple is a company and has to appeal to their consumers to make a profit. Either people will reluctantly accept the change or Apple will make revisions with the next I-Phone release.

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  36. The release of the new iPhone 7 and the features that come with it was also very disappointing to me. Although Apple says that this phone will be more sleek and less damageable, I believe that they are still going down the wrong path. I agree that the opportunity cost of getting this phone is outweighed by the cons. Yes, you may be able to have a sleeker and less damageable phone, (just like every other new iPhone there was before this one) but you are also losing key features such as the headphone jack, and the ability to choose whatever headphones you want to use simply. Instead you must either get wireless bluetooth headphones, Apple EarPods, (which are priced over $100) or have some sort of complicated adapter system with a bunch of cords. I think personally that Apple should stop trying to advance technology so quick and not rush into the future, because no one is ready yet. There are many people like me that prefer the simplicity of regular earbuds and the simple insertion into the headphone jack. Along with this new upgrade, aux cords in cars will also begin to become extinct, which I always found way easier than bluetooth. It especially worries older iPhone users like myself, when I hear rumors that they are slowing/shutting down older iPhone systems, forcing people to upgrade to the newest and waste their money on a phone that is worse than the older version. Apple is just planning to use this new iPhone release to make more money off the consumers, in my opinion, which I find very wrong. Not everyone wants to have the newest things and not everyone can afford them either, which is why Apple should not continue down this path they have with the iPhone 7.

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  37. Peronsally, I believe that the trade off of having the newest Iphone at the cost of a headphone jack is worth it. In fact, I think it's actually an improvement. The Iphone 7 comes with wireless headphones, I won't need to go out and by a brand new pair until I want to. Plus, with my current Iphone 6s, I am constantly having my headphones ripped out of my ears thanks to the limited range that wired headphones have.

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  38. Personally, I agree that the decision to get rid of the headphone jack was ridiculous. It has been a constant feature of past products and I do think that they only did this to increase sales. If you have the new iPhone 7 there is no way around it: you either get the adapters to use your headphones with a cord, or you buy new wireless ones to go with it. Additionally, I bought a MacBook Pro over the summer and Apple partnered with Beats to give away a free pair of wireless Beats Solo headphones with the purchase of a computer, so it could also be to increase sales for Apple, as well as Beats. They may be using this to market the product to be ‘less breakable’ and have a ‘sleeker design’, but in my mind it is all a ploy to bring in more revenue for the company, and they don’t have the consumer's best interest in mind.

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  40. I agree with your statement about the headphone jack, I always thought the iphone would have one. And to think they'd charge for earphones! It's also crazy to think apple is just a microeconomic in the grand scheme of things. They're everywhere but, yet just a small part in the economy.

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  41. While the loss of a headphone jack seems like too high of an opportunity cost now (which it might be), in the future it likely will not be. Apple could possibly be starting a trend to remove headphone jacks. If this happens, the price of wireless headphones will go down as more and more companies make wireless headphones that work with all of the new phones that need them.

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  42. I agree with the whole head phone jack removal. It had me so surprised and I thought it was just rumors until it was released. Knowing many people will lose their headphones, it does make the iPhone 7 become questionable in its future. Also with Apple being highly expensive, the headphones are Bluetooth which makes them go up in price. Apple is sometimes so desperate for something new to keep their popularity on the top, that simply taking away the headphones has millions of people buying the new phone. Obviously there are more features, but the headphones have been the most talked about.

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