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And I am sure that Apple would like to keep it that way. They are not innovating anymore, they are just refining and that is fine but they need an iPhone that they can use as a risk and I don't think that making a super thin iPhone is the answer.
Still, I disagree with that “need” phrasing. The other companies that are so-called innovators, aren’t innovating anything that customers want to buy. The most sold Android phones are also just refined versions of standard smartphones. Apple doesn’t need to change what a smartphone is, they just need to make the best one.

The smartphone market is maturing, and there’s nothing any company can do about it but tag along. This is good for consumers (and the environment), because we won’t have to buy a new one every year.

Remember when flatscreen TV manufacturers crapped their pants because the market flattened out? They “innovated” by coming out with lots of features no one asked for, like 3D and curved screens. Show me a curved TV with 3D on sale today. I predict similar things for the gimmicky “innovations” that Android makers are throwing against the wall. It already happened for several of them, like screens that wrap around the edge, or phones with styluses. If they even still exist, they are niche products now.

All this being said, I prefer a market with different form factors to choose from. A world where every phone is a copy of the iPhone form factor is boring. I just don’t think that Apple needs to be the one to provide the outlier use cases. If anything, it is Apple’s competitors that “need” to start innovating.

Edit, added after thinking about my answer in the post below: I will argue that Apple doesn’t just take a niche product and brings it mainstream. They take a use case where the current solutions are poorly executed, and creates a solution that is joyful to use. Smartphones were annoying to use before iPhone, and MP3 players were annoying to use before iTunes and iPod. The “problem” is that the current state of smartphones is not poorly executed. People LOVE smartphones. To the extent that they use them in unhealthy amounts. Ask people which product they would keep if they could only have one tech product, and most would say their smartphone. No one is searching for something to replace it, except tech geeks like us who get bored with the status quo.

If you want to bring a product to the masses like the iPhone has done, it needs to make it easy and simple to perform tasks that otherwise could not easily be done. Not simply be a more fancy way to perform the same tasks. This is why I’m claiming that folding phones will never be more than niche. But, I may be wrong. RAZR was a hit product, no question.
 
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You mean “never saw a flip”, right?

Yes, sorry.
Yes, I am in the US. I’m not really making any statement, just reporting what I saw, except for my drop durability hypothesizing. But I don’t think durability was the ultimate reason the child’s parents got her the flip. I assume it’s because they probably got some carrier deal, since her mom also has a flip and they aren’t super rich (nor tech-y).
The only other statement I would make though, from my extremely limited observation, I would hypothesize that females tend to like flips more than folds (probably because they prioritize portability), and tech-y men tend to like folds more than flips (probably because they prioritize large screens).
I concede I might have a blind spot regarding females, and as I remember it was often females I saw with flips or super compacts like Nokia 8210 in the dumbphone era. Yet, iPhone Mini was not a hit among women. I can see a scenario where a big screen is folded and tucked in the bag when not used, because when it’s in the bag you don’t take it in and out as often as when you have it in your pocket. I can see the appeal. If someone creates a product that is a “thing” among women, Apple does need to make sure it’s them. I’m still not fully convinced, but the argument is valid. And I applaud you for bringing up a relevant use case, rather than blindly stating that Apple needs to innovate just because (which is not true).

You have also just convinced me that IF Apple creates a folding phone, it will be a flip, not a fold. I think the tech media is too focused on the fold concept, because they envision that Apple will do it better than Android, because Apple is the only company doing tablets well. But that is seen from the technology angle. Apple doesn’t make a product because they have the tech to do it, they make a product that solves a use case for people. I think the fold form factor is a tech showcase with little real usefulness, while the flip has a more compelling real use case.
 
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I feel like this will confuse the lineup. How will it slot in with the regular 17 and SE next year? Below them? Above them? Genuinely curious.
It’s rumored to be the most expensive iPhone ever. So it won’t confuse anyone. Especially not SE buyers
 
It’s rumored to be the most expensive iPhone ever. So it won’t confuse anyone. Especially not SE buyers
I thought this iPhone Air was replacing the iPhone plus. That the iPhone Air’s pricing will be between a regular iPhone and the iPhone Pro. And the iPhone Pro Max would still be the most expensive iPhone
 
I thought this iPhone Air was replacing the iPhone plus. That the iPhone Air’s pricing will be between a regular iPhone and the iPhone Pro. And the iPhone Pro Max would still be the most expensive iPhone
Both rumours have been in play.

The idea of a Plus with different tradeoffs makes sense to me.

The idea of an even more expensive iPhone Edition does not. :)
 
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