Australians’ love story with the iPhone

I noticed at the time that the new phone added some important features, including MMS (multimedia) messaging, copy and paste, and a landscape keyboard, which later gave way to features such as artificial intelligence, a 48-megapixel ultra-wide-angle lens, and wireless charging, which are now available on iPhones.

The launch of the iPhone in 2009 also spawned a phenomenon where Apple fans would camp out overnight outside Apple Stores to be among the first to buy the new phone. This is another iPhone feature that will no longer be relevant in 2024.

“Taste is a very personal thing when it comes to smartphones, so check out your local retailer to see which one suits your style,” I wrote in 2009. “Right now, though, the iPhone 3GS is hands down the best choice. At least until next year’s model comes out.”

My opinion of the iPhone hasn’t changed much in 15 years. Different phones are for different people, but for most people who ask me “what phone should I buy”, the iPhone is a simple, though certainly not definitive, answer. Most Australian smartphone buyers would agree.

Australia is one of Apple’s most important markets. More than half of the smartphones sold here each year are iPhones. The latest data from research firm IDC shows that Apple has a 53% market share in Australia. Samsung ranks second with 28%. Chinese company Oppo ranks third with a market share of only 5%.

Australians love the iPhone for several reasons. We are relatively wealthy in global terms, with higher levels of disposable income than most other markets. The iPhone remains a status symbol, and people are offended (unfairly) if your friends can’t reply to you using Apple’s iMessage app.

Foad Fadaghi, managing director of analyst firm Telsyte, said iPhone customer retention rates are seen as the benchmark for customer loyalty across all industries.

“According to Telsyte’s half-yearly measurement, iPhone has had a repeat purchase rate of 85% or more in Australia since 2020, higher than any other vendor. It has been above 80% since we started measuring in 2016,” he said.

I’ve switched phones and manufacturers a lot over the past 15 years because I’m a tech editor. The subtle differences between devices are noticeable. Samsung smartphones tend to have longer battery life than iPhones, better cameras, and superior display technology. Android phones are a little more complicated, but they allow for more customization, and you’re not limited to Apple’s App Store to install apps.

Some of these phones have interesting, quirky features: Samsung’s foldable phone is a delight, while the Fairphone is a bold experiment in modular hardware, all of whose parts you can replace with a screwdriver.

But to me, whether it’s fair or not, the iPhone has always felt like home. And that’s exactly what Apple wants.

Lifetime lock

Apple has very specifically designed its “walled garden” ecosystem so that if you use an iPhone, you can quickly and easily pick up an Apple Watch, iPad, or MacBook and get a similar app experience because all of your personal data and settings follow you between devices.

Everything works as it should. But it comes at a cost. Once you’re locked into the Apple ecosystem, it becomes increasingly difficult to opt out. The time and money I’ve spent on iPhone apps, iMessage history, and iCloud data like photos and notes over the past 15 years means that any move back to Android feels significant, even if it’s more perception than reality.

Another more direct cost is financial. iPhones are typically at least as expensive as high-end competitors from Samsung and Google, and more expensive than most other Android phones.

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App developers also pay a price. Apple has long been criticized by app developers and Australia’s competition regulator for the fees it charges on the App Store, which ranges from 30% for large developers to 15% for smaller ones.

It’s an ongoing problem: In fact, Apple is locked in a federal court battle with Fortnite maker Epic Games over it. The App Store began as a humble place to download Angry Birds or drink virtual beer using the iBeer app, but it has grown into one of Apple’s biggest moneymakers and the center of our new digital economy.

App makers can make a ton of money by being in the App Store, but many believe that the commission Apple takes from each transaction is too much.

So what’s next for the iPhone?

The iPhone has been a favourite among Australians since its launch, but it’s about to get a real boost this time around, not because of any new cool hardware, but because of new AI features that are about to be fully integrated into the device.

We’re on a precipice similar to the one when the iPhone replaced BlackBerry and Nokia devices: Generative AI is going to be a game changer, and Apple knows it, which explains why it was quick to announce that its next wave of phones would feature “Apple intelligence.”

Fadaj said that while the next iPhone may feature hardware upgrades, new AI features will help ensure that Apple’s customer base buys the phone in the future and continues their 20-year love affair with the device that reinvented the mobile phone.

The next generation iPhone, iPhone 16, will be launched on September 9 at the Steve Jobs Theater in California.

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