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Apple's iPhone buzz fades as old models keep ticking

Jefferson Graham
USA TODAY

VENICE BEACH, Calif. — For half a decade, the launch of an Apple iPhone triggered the same kind of global hysteria once reserved for beloved music groups — customers camping for days in front of a store, often in Apple-themed costumes.

That may be changing. Low expectations for major changes to the next upgrade, and data showing consumers are holding onto their smartphones longer, suggest the Apple buzz is fading.

Apple has reached the point where “the phone is so good, I’m just not as stoked to get the new version,” says Blake Rose, who recently moved west from Kettering, Ohio. He owns the iPhone 6S, released last September.

Sales of Apple products dropped more than 20% at Target Corp. during the retailer's quarter ended July 30, said Target CEO Brian Cornell on Wednesday, contributing to a 7% drop in total sales.

The current iPhones so good Blake Rose from Ohio "not stoked" to buy new one.

Apple historically introduces new iPhones shortly after Labor Day, and if it follows past years' patterns, it would launch a phone with a major redesign and upgrade, say the iPhone 7.

This fall, however, some analysts including Tim Bajarin of Creative Strategies expect Apple to hold off on a major upgrade, waiting for 2017 and the tenth anniversary of the phone instead. "I wouldn't be surprised if next year, Apple skips 8 and 9 and introduces the iPhone 10, for the anniversary," says Bajarin.

Apple didn't respond to USA TODAY's request for comment.

New redesigned iPhone? You may have to wait

Analysts expect three key new add-ons for the next iPhone:

—A dual-camera sensor that is designed to dramatically improve low-light images and make it easier to zoom in on photos.

—More internal storage, at 32 gigabytes, up from the standard 16 GB.

—Removal of the headphone jack port, which will require consumers to plug their phones and earbuds into the Lightning charging port. This will probably cause them to buy new headphones and buds.

Lala O'Malley isn't excited for  new iPhone

How does Apple sell a new edition with minimal new features? If the camera is really good, "consumers will respond," says Bajarin. "It depends upon the quality."

Sales for the latest iPhone, the 6S and 6S Plus, didn't catch fire with consumers like previous models. Apple has reported slumping sales for the previous two quarters, a first for the company, which sent revenue down 15% for the June quarter. Iphone unit sales fell to 40.4 million in the recent quarter, down 15% year-over year.

Earlier this year Apple introduced the smaller iPhone SE, which introduced no new features but carried a lower price in a smaller body. While Apple says sales have been strong for the SE, they haven't been been enough to push iPhone unit numbers higher than previously.

The last major re-design for the iPhone was in 2014’s iPhone 6 and 6 Plus models, which remain Apple’s best-selling iPhone models. Consumers loved the larger screens and improved camera.

But 2015’s 6S and 6S Plus failed to impress in an equal way, with new features like 3D Touch shortcuts and the ability to add short seconds of video clips to your photos.

“They don’t really change anything except the camera and speed,” said Lala O’Malley, of Los Angeles. “It ended with the 4S."

Liza Veveykina, visiting from Moscow, loves her iPhone

For the next version, Maya Borski of Riverside, Calif., doesn't mind losing the headphone jack. “Now you’ll only have to worry about one hole in the phone getting wet instead of two and ruining the whole phone,” she says.

And speaking of water issues, many of the  consumers we spoke to here on Ocean Front Walk said they would love to see a 100% waterproof iPhone--like the new Samsung Galaxy Note 7, unveiled this week.

“Where’s Apple with that?” says Rose.

Ryan Seron of Boyton Beach, Florida plans to stand online the first day the new iPhone goes on sale.

But even though the innovation from Apple over the past few years has slowed, Apple fans are still out there.

Ryan Seron of Boyton Beach, Florida says he’ll be “standing online,” on opening day to get the latest iPhone. “Everyone always wants the newest thing.”

And O’Malley, though she seemed ho-hum about a new iPhone’s prospects admitted that she too will probably opt for the new model.

How often does she get a new one? “Sadly, every year,” she says.


Follow USA TODAY tech columnist and #TalkingTech host Jefferson Graham on Twitter, @jeffersongraham and listen to the daily podcast on Stitcher and iTunes.

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