Apple (AAPL.O) is anticipated to introduce a new array of iPhone 15 models on Tuesday, as concerns about market access in China and rivalry loom over the most valuable listed corporation in the world.
Over half of Apple’s $394.3 billion in revenue last year came from the iPhone, but selling in China, the Cupertino, California company’s third-largest market, presents fresh difficulties.
The Chinese government has increased certain restrictions on using iPhones, so although Apple’s newest phones are likely to include new charging ports, titanium casings, and cameras, their launch will occur at its Apple Park headquarters at 10 a.m. P.T. (1700 GMT).
Apple will also have to contend with competitor Huawei Technologies, which, until U.S. export limits destroyed Huawei’s phone business in 2019, was its main adversary in China’s premium smartphone market (HWT.UL). The Mate 60 Pro, a high-end Huawei phone with Chinese processors, went on sale last week. Some U.S. senators contend that these chips were produced contravening American trade restrictions.
With add-on capabilities like satellite calls that rely on China’s government-backed network, Huawei hopes to outperform Apple. Satellite capabilities are included in Apple’s current iPhone models, although they are only intended to be used in emergency scenarios.
On Tuesday, Apple is probably going to emphasize its new product portfolio. Switching from Apple’s proprietary “Lightning” charging cords to USB-C, a standard that Apple already utilizes on select high-end iPads and laptops, will be the largest shift for most Apple consumers.
Regulations in Europe pushed Apple to move, but experts think the firm will present it as an improvement, using quicker internet rates that can transport high-quality films shot on iPhones.
Analysts anticipate that smartphones will soon have improved zoom capabilities, titanium casings, modernized CPUs, and a new “periscope” camera technology. Such “periscope” lenses may use mirrors or prisms to get a longer lens without significantly increasing the size of the camera module.
The key issue of the day will be if Apple enhances its less expensive versions just slightly while saving those capabilities for a brand-new high-end gadget.
We’ll see many people buy this even if they aren’t camera or photography enthusiasts, just because they like the newest and greatest, predicted Ben Bajarin, chief executive and principal analyst of Creative Strategies. “Just like we saw people who aren’t Ultra athletes buy the Apple Watch Ultra,” he added. “That creates that buzz, momentum, and allure to the top end.”
The issue is whether Apple raises pricing across the board or just on premium models to improve the average price per phone sold and increase revenue. According to statistics from Counterpoint Research, Apple’s smartphone shipments decreased the least of any major smartphone manufacturer, falling from 46.5 million phones to 45.3 million. In comparison, the global smartphone industry shrank from shipping 294.5 million total phones to 268 million in the second quarter.
The director of TECHnalysis Research, Bob O’Donnell, said, “The truth of the matter is, we’re in a very down smartphone market.”
The technical trend that underlies programs like OpenAI’s ChatGPT and Microsoft’s “Copilot” assistant technologies for its Office software is known as generative artificial intelligence, and O’Donnell said he would also be on the watch for any signs regarding Apple’s goals in this field of study.
Analysts have regularly pressed Apple on its plans for such technology. Still, apart from Chief Executive Tim Cook’s statements in July that the firm’s covert work on the technology is pushing up its research budget, the company has provided little signals.
Will Apple hint at an upgraded version of Siri? That would certainly cause some excitement, according to O’Donnell.
