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It’s Time to Stop Waiting for Apple’s Next iPhone Moment

Commentary: The iPhone took off because it came at the right time — a moment that may be impossible to re-create.

When the original iPhone arrived in 2007, few people knew it would lay the foundation for the devices we now carry in our pockets each day. As the June 5 date of Apple’s Worldwide Developers Conference approaches, all eyes will be focused on whether the tech giant can re-create that impact with its first entirely new product in almost a decade: a head-mounted computer. 

The iPhone wasn’t the first smartphone, nor was it the first mobile device to achieve cultural relevance as a status symbol. But it came at just the right moment, and there arguably hasn’t been such a perfectly timed tech product launch since. Re-creating that moment will be challenging, even for Apple. 

The tech industry has evolved a lot since 2007, and so has our relationship with technology. Devices like the iPhone and the BlackBerry revolutionized the way we access information and communicate, at a time when the idea of constant internet connectivity was relatively new. 

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But the biggest new gadgets since then (think smartwatches, wireless earbuds) were initially useful because they untethered us from those phones, helping us better navigate the influx of alerts flowing from them. It took years for the Apple Watch to establish its direction as a health and wellness device, and I suspect it’ll similarly take time for the headset to find its niche. 

The arrival of a completely new product — whether it be a smartwatch or a headset — doesn’t feel the same as it did 16 years ago. Nor should it. 

For the iPhone, timing was everything

The iPhone debuted at a formative time for personal technology. As the internet became a more integral part of our lives, so did the need to take it with us. 

The iPod, BlackBerry phones and other personal digital assistants (better known as PDAs) provided a way to keep us connected on the go as people recognized the need to listen to music, send emails, and manage calendars away from home. Shipments of handheld computers from brands like BlackBerry and Palm rose 18.4% in 2006, according to Gartner data reported by the Associated Press in early 2007, underscoring the demand for mobile access to email and other communications. 

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Research in Motion’s BlackBerry Curve 8350i, from 2008. The BlackBerry first appeared in 2002.

Corinne Schulze/CNET Networks

Then the iPhone came in 2007 and changed everything. Steve Jobs famously introduced the first iPhone as a phone, an iPod and an Internet communicator in one device. What made the iPhone so impactful was that those three things were already necessities in people’s lives, as the success of cell phones, the iPod and home computers showed. 

In 2000, 51% of US households had one or more computers, and more than 40% of households were connected to the Internet, according to a 2001 New York Times report covering Census Bureau data. The US added a record-breaking 25.7 million new mobile phone users in 2005, reported InfoWorld in 2006, citing data from the Cellular Telecommunications & Internet Association. And sales of MP3 players were booming in the early 2000s, as market researcher IDC reported back in 2002. 

Clearly the internet, MP3 players and cell phones were permeating everyday life long before the iPhone made its debut at the Macworld conference in 2007. The iPhone was the culmination of these trends, showing how hardware was catching up to the way people were already using tech products in their daily lives. Though PDAs and early “smart” phones like the IBM Simon were a promising start, they were largely designed to be handheld computers with cell phone functionality. 

The iPhone and other modern smartphones took that idea a step further. When Apple’s App Store arrived later in 2008, apps turned the iPhone and other handheld devices into Swiss Army Knives, expanding their functionality beyond the business-focused PDAs of years past. Today, mobile devices can serve as phones, internet and email portals, music players, mini-TVs, flashlights, wallets, keys and so much more, largely thanks to the proliferation of apps.

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The App Store turned the iPhone into much more than a phone, iPod and internet communicator. 

Angela Lang/CNET

But it’s important to remember that even the iPhone wasn’t an overnight success. The original model’s price and initial exclusivity to AT&T, combined with the notion that Apple was a newcomer to the mobile phone business, certainly resulted in some skepticism about the iPhone’s future. Let’s not forget that the first model also had many shortcomings, as former CNET Senior Managing Editor Kent German pointed out in his review.

Still, the iPhone had a long-term impact because it filled a need at the right time — even if it wasn’t immediately accessible to everyone right away. Consider technologies that came before their time. Microsoft’s SPOT platform sought to turn everyday objects like watches and household appliances into smart gadgets — preceding today’s smartwatches and the so-called internet of things boom. The SPOT watches never caught on, thanks in part to their bulky design and the subscription fee required to access Microsoft’s MSN Direct service, as my colleague David Carnoy wrote in 2008, marking the end of Microsoft’s efforts in that area at the time.

An Apple headset has a lot more competition for our attention 

Fast-forward to today, and the tech world is buzzing about what’s expected to be a similar moment in Apple’s history. The company will reportedly introduce its first mixed reality headset on June 5, which Bloomberg says will have apps and software features that span gaming, communication, fitness and more. Apple has a reputation for popularizing devices like the smartphone, tablet and smartwatch, so the expectation is that it will do so again for headsets.

That may very well be true. But making head-mounted computers as ubiquitous as the iPhone is a tough task, even for Apple. Once again, it will all come down to timing. From smartwatches to earbuds, tablets to smart speakers, there are plenty of gadgets in our lives designed to fulfill different needs — many more than when the first iPhone launched. 

Apple Watch Ultra vs Series 8 Apple Watch Ultra vs Series 8

Devices like the Apple Watch can help us manage the influx of notifications coming from our phones.

Lexy Savvides/CNET

American households owned an average of 16 connected devices as of 2022, according to research firm Parks Associates. A Pew Research survey from 2021 found that 31% of US adults said they’re constantly online. A Reviews.org survey, the results of which were published this month, found that 56.9% of Americans said they’re addicted to their smartphone.  

A gadget like Apple’s virtual reality headset, which will cost around $3,000 according to Bloomberg, will have to be very compelling to demand attention in a world already oversaturated with screens and sensors.

The iPhone may have revolutionized the way we communicate and use the internet. But we’re now in an era in which people are looking to disconnect from their phones more easily, and that shows in the new tech products from the last decade.  

What do smartwatches, wireless earbuds and smart speakers have in common? They all allow us to access the internet without reaching for our phones, whether it’s skipping to the next track on your Spotify playlist, asking a virtual assistant for today’s weather forecast or getting a text message on your wrist. A mixed reality headset would seemingly do the opposite by further plunging you into whatever content you’re experiencing at the moment.  

Even the developments in generative artificial intelligence, or AI, that can create content based on prompts, are designed to help us spend less time buried in screens. Google, for example, recently showed off a new Gmail feature called Help Me Write that can draft messages for you based on a quick prompt. Tools like these could shorten the amount of time we spend replying to emails and other communications, and could arguably be more impactful than new hardware. (In fact, if you’ve been following tech headlines in 2023, AI is apparently in the midst of its own “iPhone moment.”)

The slow-burn effect

In recent years, it’s taken longer for new Apple gadgets to establish a role in our lives, and the Apple Watch is the strongest example of this. When introducing it back in 2014, Apple initially positioned it as a personal timepiece by highlighting its stylish design and time-telling accuracy, before mentioning health and fitness.

But as the gadget matured and became more popular, Apple leaned more fully into health. It added ECG functionality in 2018 with the Series 4 model, enabling the watch to provide more data about cardiac health and signaling a turning point for the device. In 2019, Apple CEO Tim Cook told CNBC that Apple’s “greatest contribution to mankind” will be about health. Roughly three years after the first Apple Watch arrived, it became clear that health, fitness and wellness tracking would be the its most important purpose. The iPhone may not have been in everyone’s pockets right away, but its role as a handheld computer, MP3 player and phone was apparent from the start. 

A wrist wearing the Apple Watch Series 4 44mm smartwatch against a yellow background. A wrist wearing the Apple Watch Series 4 44mm smartwatch against a yellow background.

The Apple Watch Series 4 was the first with ECG support.

Sarah Tew/CNET

Is it the right time for Apple’s rumored headset? I don’t have the answer, and I’m not sure if Apple does either. But one thing is for certain: If the headset is a hit, its success will look a lot different than that of the first iPhone. We might not understand the headset’s role in our lives until years after its release, if the Apple Watch’s trajectory is any indication. That wouldn’t deem it a failure, it’s just a sign of the times. 

The so-called “iPhone moment” may be behind us for good. Or maybe it’s just changed.

Technologies

CNBC Daily Open: U.S.-China meeting in focus while Trump wants to rename the Strait of Hormuz

All eyes are on the upcoming meeting between U.S. President Donald Trump and Chinese leader Xi Jinping at the White House, which could offer more clues to the U.S.-China trade relations as well as China’s stance towards Iran amid the Mideast conflict.

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Hello, this is Justina Lee writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.

The upcoming meeting between U.S. President Donald Trump and Chinese leader Xi Jinping at the White House is highly anticipated, though some China watchers are keeping their expectations low.

But relations with China aren’t the only focus for Trump, as he floated the idea to rename the Strait of Hormuz after himself. This comes less than a week after he signed an executive order to change the name of Lake Ontario to “Lake America.”

On the economic front, worries over inflation, higher rates and high debt continue to weigh on sentiment, as benchmark borrowing costs around the world extend their multi-decade highs.

What you need to know today

All eyes are on the upcoming meeting between U.S. President Donald Trump and Chinese leader Xi Jinping at the White House, which could offer more clues on the future of U.S.-China trade relations as well as China’s stance towards Iran and the Mideast conflict.

Some China watchers, however, are keeping their expectations low, as both sides appear to be more interested in avoiding moves that would risk their current trade truce.

Meanwhile, Trump continues his “naming” game, expressing his desire to rename the Strait of Hormuz after himself, less than a week after he signed an executive order to change the name of Lake Ontario to “Lake America.”

But “making America great” doesn’t stop there, as Trump met with travel industry executives who urged his administration to target attracting 100 million international visitors by 2030.

Oil continues to dominate the headlines amid the Mideast conflict. The Strait of Hormuz, which remains one of the most critical strategic waterways for global trade flows, saw oil exports hit a wartime record on Monday with more than 17 million barrels daily, Energy Secretary Chris Wright told CNBC.

While concerns over oil supply disruptions in the Middle East continue to persist, Venezuela offers a bright spot. Chevron is expanding its operations in Venezuela, more than doubling its oil production over the next five years via a $7 billion investment.

Over at the G20 gatherings this week, artificial intelligence took center stage with OpenAI CEO Sam Altman saying the use of AI is “non-negotiable” and Anthropic co-founder Tom Brown praising Trump’s stance on AI data centers.

Switching lanes to auto-related sectors, Uber announced plans to cut 10% of its workforce as it seeks to consolidate management layers and lower costs. However, the ride-hailing company declined to disclose the number of jobs cut, nor did it attribute the move to AI.

In markets, U.S. stocks closed higher in Wednesday’s regular trading, with all three major averages snapping a three-day slump. Asia markets closed lower amid concerns over Iran-U.S. tensions.

Meanwhile, worries over inflation, higher rates and high debt remain in focus, as benchmark borrowing costs around the world extend their multi-decade highs. Central banks in major economies, including the U.S., are widely expected to raise interest rates this month.

—Justina Lee

And finally…

Zelenskyy says airlines should avoid Russian airspace as Ukraine expands drone operations

Ukrainian President Volodymyr Zelenskyy has urged airlines to avoid Russian airspace as Kyiv expands its drone operations.

“We want to warn every airline that uses Russian airspace, every insurer, and everyone who still uses Russia’s key airports: Russian airspace is becoming completely unsafe,” Zelenskyy said Tuesday in his evening address.

His warning follows Ukraine stepping up its long-range drone strikes on Russian oil refineries and logistics hubs, as it seeks to raise the cost of the war for Moscow.

—Sam Meredith

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Technologies

Uber Aims to Reduce Staff by 10% to Achieve Simpler, Faster Operations

Uber plans to cut about 10 % of its workforce to simplify operations and accelerate decision‑making, while maintaining its $10 billion-plus investment in autonomous vehicles. The layoffs are part of a broader effort to flatten management and concentrate staff in key hubs.

Uber’s CEO Dara Khosrowshahi told employees that the layoffs are intended to make the company simpler and faster while freeing up resources for future investments, including the planned $10 billion-plus commitment to autonomous vehicles. The announcement pushed Uber’s shares up almost 2 %. Uber declined to specify how many jobs would be eliminated; the firm reported roughly 34,000 employees at the close of 2025 in its annual filing. The move follows a broader trend among technology firms to flatten management hierarchies to accelerate decision‑making and boost efficiency. Khosrowshahi said the cuts are not linked to AI‑driven layoffs affecting other tech companies. The restructuring will slash small teams of one‑to‑two‑person reports by about half and reduce staff seven levels below the CEO by 20 %, noting that Uber has surpassed the usefulness of many of those layers at its current scale. Additionally, Uber will merge several teams and concentrate more workers in hubs such as New York and San Francisco, while permitting roughly 1 % of employees to continue working remotely. Khosrowshahi argued that a leaner structure will clarify accountability, speed up decisions, and allow more time for product development rather than coordination.

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Technologies

Iran Claims Tankers Hit Mines in Hormuz, U.S. Disputes Allegation

Iran alleges two tankers were mined in the Strait of Hormuz, but the U.S. denies this, amid ongoing military tensions and retaliatory strikes.

According to Iran’s Revolutionary Guard, two oil tankers struck naval mines while attempting to cross the Strait of Hormuz on Wednesday, following Iranian retaliatory strikes on U.S. bases in the Middle East. In a statement relayed by state media, the hard-line military group said the vessels were disabled and their crews forced to disembark after ignoring warnings about taking an “illegal route” through the strait. President Donald Trump stated he was not trying to force Iran to the bargaining table, as U.S. forces conducted a new round of attacks against the country on Tuesday. U.S. Central Command countered Iran’s claim, posting on social media that no ships had hit mines in the Strait of Hormuz, calling it another IRGC attempt to intimidate commercial shipping through disinformation. The latest military exchanges occurred as the Financial Times reported on Russia’s secret assistance to Iran in developing advanced supersonic cruise missiles targeting U.S. warships. In a Truth Social post, Trump asserted U.S. control over the Strait of Hormuz and highlighted Tehran’s economic collapse, questioning when Iranians would rise up. Earlier, U.S. Central Command announced strikes on Iranian air defense and communications sites in retaliation for recent attacks on shipping and American personnel. Iran responded by targeting Jordan, with Jordan’s armed forces intercepting 10 of 13 missiles, causing no casualties. Bahrain also reported intercepting Iranian air strikes. U.S. Treasury Secretary Scott Bessent predicted the Strait of Hormuz would become obsolete within two years as oil shifts to land pipelines. The Sunday strikes marked the first U.S.-Iran exchange in a month, following the Trump administration’s “economic D-Day” on Tehran’s supporters.

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