👉 Background: Apple was founded in 1976 and held the title of the the world’s most valuable company for many years (until recently) - thanks to its iPhones, Macs, iPads, as well as its subscription services like iCloud and AppleTV+. More than 1.4 billion people use iPhones globally so when Apple makes a software update, it’s basically a mini-world-event.

‍👉 What happened: Last week, Apple unveiled a bunch of its latest upgrades, including its new iPhone 17 (aka “the thinnest iPhone ever”). They also released Airpods 3. Both products will be released on September 19. But as part of this announcement, Apple launched a new operating system called iOS 26.

‍👉 What else: As part of this iOS update, iPhone users will:

• The Liquid Glass redesign has changed the shape and look of the icons
• The phone app can automatically screen calls from unknown numbers with the iPhone
• The phone app can also wait on hold for you until a customer services agent picks up and is ready to speak to you

But not every iPhone is compatible though. It’s only compatible with 2019's iPhones 11 and newer. In other words, this is Apple’s way of ensuring customers need to continue upgrading their phones.

‍What's the key learning?

‍💡Software updates are pitched as a way to breathe new life into your phone, but they can also have the opposite effect because over time, big updates often slow down older devices or limit which features are available.

💡While it’s not always intentional, it’s often enough to frustrate users so that they are forced to buy a newer phone. But sometimes, it is intentional too. In 2017 when Apple admitted to deliberately limiting speeds on devices with ageing batteries, and they settled this case in the US for $500 million USD!

💡For Apple, this cycle is powerful because it keeps long-term users engaged while quietly encouraging hardware sales. This ensures that customers eventually buy back into the hardware over and over.