My wife has an iPhone 4.  She&#x27;s not a technical person; she just wants a phone and some apps.  She has no interest in upgrading.<p>Moreover, her iPhone 4 was the first smartphone in our family.  Since she got her phone (and stuck with it), I&#x27;ve gone through at least four or five phones -- always because they broke, not because I was interested in upgrading.<p>So I&#x27;m guessing that while there are lots of Apple gotta-have-the-latest people out there, most people just want a phone that works.  And if Apple&#x27;s hardware and software quality are good (or even half-good), then people will just keep using their old phones.<p>Which means that Apple will continue to sell phones, but the number of people who will buy or upgrade each year will shrink, at least to some degree.<p>It should also be noted that Apple is still very profitable!  It&#x27;s just <i>less</i> profitable than it was last year.