On Legacy iPhones and Cannibalization

By continuing to sell legacy iPhones after the debut of the device’s latest iteration, Apple, which has long catered to the higher end of the markets it plays in, is extending its reach to price-sensitive consumers. That’s a great way to spur iPhone adoption, but is it a source of cannibalization as well?

While offering consumers legacy iPhones for lower prices might limit the number of full-priced iPhones Apple can sell, it’s pretty clear that it is also bringing customers that might not have otherwise purchased an iPhone into Apple’s ecosystem. And presumably a few will stay there — assuming the iPhone retains its current appeal or isn’t surpassed by another device and platform. Better to have consumers buy legacy iPhones at cheaper prices than competing smartphones on rival platforms.