“Today is the beginning of a new era for iPhone,” Tim Cook, CEO of Apple, declared as he announced the 5G partnership with Verizon’s CEO Hans Vestburg. The Apple (NASDAQ: AAPL) event, which also launched magnetic accessories and a new smart home speaker, had over 2.5 million people live streaming it on YouTube.
Show me the products!
Like every Apple event, the main attraction was the new iPhone models. Spanning from $699 for the HomePod mini to $1,099 for the iPhone 12 Pro Max, there was something for every budget. The latter is the largest iPhone screen to date, with a 6.7-inch display. The iPhone 12 Pro and Pro Max models also have telephoto lenses, ultra-wide lenses, bigger camera sensors, and lidar scanners which can create 3D scans of rooms. Aspiring and professional photographers may just be enticed to pick up a new iPhone for these additions alone.
Apple also launched the new iPhone 12 Mini. For the first time, the company released a phone that had a smaller screen than the previous year’s models. It has all the same features as the iPhone 12, and is priced at a reasonable $699.
Apple’s new smart home speaker, the HomePod mini, was also released, priced at $99. After the original HomePod was criticized for being too expensive at $299, the mini is a more affordable option that basically does the same thing. It can recognize different members of the same households’ voices and connects with Apple Homes smart automation. The HomePod mini has a great advantage over Google and Amazon’s rival products, as it can interact more directly with users’ phones. The HomePod mini is designed to be used as a home intercom of sorts, with users being able to speak directly into their phones. Apple has an opportunity to use ease of interaction between iPhone and its HomePod mini as a real selling point, which may just sway buyers to opt for this version when it’s time for customers to upgrade their smart home speaker.
Apple spent a decent portion of the event speaking about its new A14 chip. Gamers rejoice as the new chip inside iPhones will allow for faster playing time by using enhanced artificial intelligence.
In an effort to cut down its carbon footprint, Apple is not including earphones or chargers with their new iPhones. However, it will include a higher power charging cable — so hold onto your plugs!
This could be a smart sales tactic by Apple so customers buy the new wireless magnetic charger, the MagSafe. This nifty gadget comes with a host of accessories, including a magnetic wallet that can connect to the back of your iPhone, a leather cover that can turn into clock mode, and a folding charger for the Apple Watch and iPhone.
5G is finally here! Right?
Not quite. Unfortunately, lots of us won’t be able to experience the ‘millimeter wave’ speed just yet. Very few carriers have limited availability for the technology and only those living in urban areas will be able to benefit from its super speed. Even city dwellers will have to be standing next to a 5G tower to get coverage as 5G currently cannot penetrate walls. Those lucky enough to get 5G will enjoy faster download speeds, better gaming experiences, and many other benefits that come with superior internet speed.
After the event, T-Mobile CEO Mike Sievert explained that the Apple event was the “firing gun on 5G”, whilst the Wall Street Journal claimed it was unsure if flocks of people would go buy a 5G phone if they are not guaranteed to have the service and required applications for it to work properly.
Apple shares dropped by 3% during the event, sending its price down to $119.65. Perhaps the drop was due to leaks of the product already being announced or maybe because of the lack of earbuds and charger plugs. Whatever it was, Apple investors should not be too worried as, on average, Apple stock rises by almost 11% three months after a product launch event. Analysts predict that the new models will cause a high number of upgrade requests from Apple users. The addition of 5G is the first cellular technology upgrade since the iPhone 5 which was released back in 2013. The successes of 5G will rely heavily on where the user is and what carrier they use. The iPhone 12 is also the first big redesign since the iPhone X’s in 2017.
An Apple a Day keeps the boredom away
iPhone sales revenue hit a peak back in 2017, and the company hasn’t reached those figures ever since. Will 2020’s new Apple products be enough to juice growth again? We are still in the midst of a pandemic, which may attribute to customers not wanting to physically go into an Apple store. However, cult fans and those due an upgrade may just opt for the swanky new iPhone (or maybe even a HomePod.)
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Financial Writer at MyWallSt
Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.