Origin Kajian #1 - Apple’s Incremental Innovation Strategy: A Case Study of iPhone

Introduction

Apple is one of the leading global technology companies that consistently demonstrates strong financial performance. Based on its latest financial report, Apple recorded total revenue of USD 143.7 billion in the first quarter of 2026, increasing from USD 124.3 billion in the same period of the previous year. The iPhone remains the company’s main contributor, generating USD 85.2 billion in revenue, highlighting its position as Apple’s flagship product (Apple, 2026). Furthermore, Apple’s net income also increased significantly from USD 93.7 billion in 2024 to USD 112 billion in 2025, reflecting sustained growth.

Despite this strong performance, Apple does not always introduce revolutionary innovations. Instead, the company tends to implement gradual product improvements, such as enhancements in camera quality, chipset performance, and battery efficiency in iPhones. Although these changes may appear incremental, the iPhone continues to attract consumers and encourages repeat purchases.

This phenomenon can be linked to changes in consumer behavior in the digital era. Research by Riyanto et al. (2025) shows that social influence, trends, and the phenomenon of Fear of Missing Out (FOMO) significantly affect purchasing decisions, particularly for premium products such as the iPhone. This indicates that purchasing decisions are not solely based on technical specifications but are also influenced by psychological and social factors.

In addition, within modern marketing, the consumer decision-making process is no longer linear as described in the traditional funnel model but has evolved into a more complex journey known as the consumer decision journey. According to Court et al. (2009) from McKinsey & Company, consumers go through several stages, including initial consideration, active evaluation, purchase, and post-purchase experience, which ultimately influences loyalty. In this process, factors such as user experience, recommendations, and digital exposure play a significant role in shaping purchasing decisions.

Based on these observations, an important question arises: how does Apple maintain its product appeal despite relying on incremental innovation? Therefore, this article aims to analyze Apple’s incremental innovation strategy and its impact on product value and consumer behavior.

Incremental Innovation

Incremental innovation is a common form of innovation used by companies to maintain competitiveness in the market. According to Juwitasari (2022), incremental innovation refers to improvements or refinements made to existing products or services, whether in terms of design, features, or functionality. This type of innovation is not drastic but is carried out gradually to enhance product value in the eyes of consumers. Its main characteristic is continuous improvement, allowing companies to remain relevant to market needs without facing the high risks associated with radical innovation.

In practice, incremental innovation enables companies to improve product quality more efficiently by leveraging existing technologies. This strategy is widely used to sustain business operations in increasingly competitive markets by continuously delivering added value to consumers. Conversely, companies that fail to innovate risk losing competitiveness, as seen in the case of BlackBerry. Therefore, incremental innovation can be understood as a strategy focused on continuous value enhancement to support long-term business sustainability.

Product Development and Innovation Strategy

Product development refers to the process through which companies create or improve products to meet market needs. In practice, product development does not always involve creating entirely new products but may also include refining existing ones. Therefore, innovation strategy plays a crucial role in determining the direction of product development, whether through radical or incremental innovation. This strategy enables companies to remain competitive by consistently delivering added value in line with technological advancements and evolving consumer preferences.

One key factor supporting successful product development is knowledge management (KM). According to Idrees et al. (2023), KM enhances efficiency, effectiveness, and innovation in new product development (NPD). Effective knowledge management improves organizational performance, accelerates decision-making, and fosters continuous innovation. Thus, product development strategies depend not only on technology but also on a company’s ability to leverage knowledge as a source of competitive advantage, as demonstrated by Apple.

Brand Loyalty

Brand loyalty refers to a biased behavioral response expressed over time, which reflects a consistent pattern of repurchasing a particular brand due to positive attitudes and emotional attachment toward it (Ishak and Ghani, 2013). This concept suggests that loyalty is not merely based on repeated purchases but is also influenced by affective, behavioral, and attitudinal dimensions.

In the context of marketing, brand loyalty plays a crucial role as it strengthens customer retention and reduces the likelihood of switching to competing products. Incremental innovation contributes to this by consistently enhancing product value without altering its core identity, thereby maintaining familiarity while offering improvements. This approach encourages consumers to remain loyal and continue repurchasing the product, as seen in the case of Apple and its iPhone.

Implementasi Incremental Innovation pada iPhone

One way to understand incremental innovation in practice is by comparing product specifications over time. In this context, the iPhone demonstrates a consistent pattern of improvement across generations. A comparison of the iPhone 15, iPhone 16, and iPhone 17 highlights how Apple incrementally enhances features such as performance, battery life, camera capabilities, and connectivity. The table below illustrates these gradual improvements.

Aspects	iPhone 15	iPhone 16	iPhone 17
Chipset	A16 Bionic (4 nm)	A18 (3 nm)	A19 (3 nm)
RAM	6 GB	8 GB	8 GB
Battery	3349 mAh	3561 mAh	3692 mAh
Charging	15W wireless	25W wireless	25W wireless
Screen	OLED, 60Hz	OLED, 60Hz	LTPO OLED, 120Hz
Brightness	Until ±2000 nits	Until ±2000  nits	Until ±3000  nits
Main Camera	48 MP	48 MP	48 MP
Ultrawide	12 MP	12 MP	48 MP
Front Camera	12 MP	12 MP	18 MP
Wi-Fi	Wi-Fi 6	Wi-Fi 7	Wi-Fi 7
Bluetooth	5.3	5.3	6.0
UWB	Gen 2	Gen 2	Gen 2
OS	iOS 17	iOS 18	iOS 26
Additional Features	Satellite SOS, Face ID	+ Spatial Audio	+ LTPO, Anti-reflective

Based on Table 1, the implementation of Apple’s incremental innovation strategy can be seen through gradual improvements across various technical aspects of the iPhone. In terms of performance, the iPhone 15 uses the A16 Bionic chip (4 nm), which is then upgraded to the A18 (3 nm) in the iPhone 16 and further to the A19 (3 nm) in the iPhone 17. These improvements indicate higher energy efficiency and performance without drastically changing the overall product concept. A similar pattern can be observed in RAM, which increases from 6GB in the iPhone 15 to 8GB in the iPhone 16 and 17, supporting better multitasking and application performance.

In terms of durability, battery capacity also experiences gradual improvements, increasing from 3349 mAh (iPhone 15) to 3561 mAh (iPhone 16), and reaching 3692 mAh (iPhone 17). In addition, charging technology also improves, such as the increase in wireless charging speed up to 25W in the latest generation. This indicates that Apple not only increases capacity but also enhances energy efficiency. In terms of display, the iPhone 15 and 16 still use the standard Super Retina XDR OLED, while the iPhone 17 introduces a significant upgrade with LTPO OLED technology, a 120Hz refresh rate, and higher brightness levels, resulting in a better visual experience.

Improvements are also evident in the camera system and supporting features. Although the iPhone 15 already features a 48 MP main camera, the iPhone 17 upgrades the ultrawide camera to 48 MP and increases the front camera to 18 MP. Furthermore, there are enhancements in connectivity, such as the transition from Wi-Fi 6 in the iPhone 15 to Wi-Fi 7 in the iPhone 16 and 17, as well as an upgrade in Bluetooth from version 5.3 to 6.0. Additional features such as improvements in Ultra Wideband (UWB), satellite communication, and operating system optimization also indicate continuous innovation. Overall, these improvements demonstrate that Apple consistently refines various aspects of its products without altering the core design and concept of the iPhone, reflecting the implementation of incremental innovation.

Based on Graph 1, iPhone revenue shows very significant growth in the long term. Revenue increased from only USD 1.8 billion in 2008 to more than USD 209 billion in 2025. Although there were fluctuations in several periods, such as declines in 2016 and 2019, the overall trend still shows strong growth. This indicates that the incremental innovation strategy implemented by Apple is able to maintain product attractiveness continuously in the global market.

Meanwhile, Graph 2 shows that iPhone sales have also increased from 11.6 million units in 2008 to around 247 million units in 2025. Although sales growth tends to slow down after 2015, the sales figures remain stable at more than 200 million units per year. This indicates that Apple has reached the stage of market maturity, where growth is no longer exponential but remains stable due to high consumer loyalty.

The success of this strategy can be explained through several factors. First, incremental innovation allows Apple to minimize the risk of product failure, because the changes made are not too drastic. Second, this strategy is more efficient because it utilizes existing technologies for further improvement. Third, gradual improvements provide a balance between innovation and familiarity, so consumers continue to feel comfortable using new products. This contributes to high brand loyalty, which becomes one of Apple’s main strengths.

However, this strategy also has weaknesses. Innovation carried out gradually has the potential to create perceptions of stagnation, especially among consumers who expect major changes in each product generation. In addition, in conditions where disruptive technologies emerge from competitors, the incremental innovation strategy may become less effective if it is not accompanied by more significant innovations. Therefore, although this strategy has proven successful in maintaining business stability and growth, Apple still needs to balance incremental innovation with radical innovation in order to maintain its competitive advantage in the future.

Conclusion

Based on the discussion, Apple has proven to successfully implement an incremental innovation strategy through gradual improvements in iPhone features, such as chipset performance, camera capabilities, battery life, and connectivity. This reflects a pattern of continuous improvement without altering the product’s core concept. This strategy has proven effective in enhancing product value as well as maintaining business performance, as indicated by the long-term growth trends in iPhone revenue and sales.

In addition, this gradual innovation approach also contributes to high levels of brand loyalty among consumers, supported by user experience as well as psychological factors such as trends and Fear of Missing Out (FOMO). However, in the long term, Apple still needs to balance incremental innovation with more significant innovations in order to avoid perceptions of stagnation and maintain its competitive advantage amid the increasingly dynamic competition in the technology industry.

Writer: 

Dafa Arya Saskara

Sources:

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