“It could be something to remember him by, as they were close.”
Source link
Tang Tan, the Apple Inc. executive who headed product design for the iPhone and Apple Watch, is leaving amid a shake-up of the division responsible for the company’s most critical product lines, according to a Bloomberg report.
Tan reports to John Ternus, senior vice president of hardware engineering, and the division is reshuffling duties to handle the transition.
Earlier this week, Bloomberg reported that Steve Hotelling, who worked on key technologies like the iPhone’s multitouch screen, Touch ID, and Face ID, is retiring from Apple.
Shares of Apple
AAPL,
are up 0.7% in trading Friday. Apple had no comment on the departures.
Apple CEO Tim Cook holds up a new iPhone 15 Pro during an Apple event on Sept. 12, 2023, in Cupertino, California.
Justin Sullivan | Getty Images News | Getty Images
Apple CEO Tim Cook cheered on gamers at an event during a surprise visit to China, underscoring the market’s importance to the iPhone giant at a time when it faces mounting challenges.
Gamers gathered at an Apple store in Chengdu in southwestern China to play “Honor of Kings,” a game developed by TiMi Studio, which is owned by Chinese tech giant Tencent.
“The action-packed Honor of Kings started here in Chengdu and is now a global phenomenon on the App Store,” Cook said in a post on Chinese social media service Weibo.
Cook also posted a video of himself cheering on gamers at the tournament. Honor of Kings is one of the biggest mobile games in China and a substantial revenue driver for Apple’s App Store in the country.
The Apple CEO’s visit to the company’s third-largest market comes just under a month after the iPhone 15, the company’s flagship smartphone, went on sale to a seemingly lukewarm reception, and as a beaten down Huawei attempts to make a comeback in the mobile market.
“It’s a tough start for Apple to be sure and it’s a combination of factors driving this,” Ethan Qi, associate director at Counterpoint Research, told CNBC via email.
Qi attributed Apple’s challenges to poor consumer sentiment, the iPhone 15’s poorer performance than the iPhone 14 and increasing competition in the high-end smartphone market.
“All of these things are working together to take some of the shine away from Apple’s lustre during the first few weeks of iPhone 15 sales,” Qi said.
Forget the divide between Democrats and Republicans, or between New York Mets and New York Yankees fans. I’m here to tell you about the real issue that separates us Americans.
Namely, whether you’re an iPhone user or an Android phone user.
I’ve been thinking about this issue in light of the fact that Apple
AAPL,
rolled out its latest iPhone models last month, while Google
GOOGL,
which developed the Android technology, is unveiling its next-generation Android-based Pixel phones on Wednesday. Of course, Android fans know you don’t have to buy a Pixel phone if you want to go the Android route — that’s one of the technology’s key selling points, but I’m getting ahead of myself.
Actually, I’m not really that interested in talking about the differences between the two styles of phones. I’m hardly a techie type — I had enough of a mental breakdown when I was forced to switch from a company-issued BlackBerry smartphone to a company-issued iPhone about a decade ago — so I’ll let much smarter folks weigh in on the pros and cons of each phone.
But I will say this from my Luddite-level vantage point: The war between the phone fanatics just seems like all kinds of silly. It’s a point that hit home for me when I was with a friend about a year ago, and we were driving around looking for this cool place to enjoy an afternoon drink.
He got a little lost and pulled out his Android phone for directions. Simultaneously, I pulled out my iPhone for the same reason (yes, I’m still sticking with the iPhone until they revive the BlackBerry). Suddenly, he unleashed a barrage of comments, as if I had announced to the world that I thought Mister Rogers was the devil incarnate. I can’t recall the exact words he used, but I’m pretty sure they included “clueless,” “idiot” and “iSheep,” plus an occasional expletive thrown in for good measure.
I had figured the conversation was perhaps an isolated outburst, but I’ve encountered other awkward situations like that with Android loyalists since then. And frankly, it’s not much different than the conversations that I, an Apple Macbook user, have had with PC users over the years. I have a friend who switched from Apple to PC models more than three decades ago and still talks about how much he now considers PC technology superior in every way. If you get this guy started, you better get comfortable — let’s just say you’re in for a very long ride.
When I did a little digging, I found the technological divide proves to be a sore spot in many relationships. Take Karen Hoskins, a Colorado resident who’s an iPhone user but is married to an Android fan. She told me that she and her husband agree on most things, but when the phone issue arises, it leads to “the most hilarious arguments.” One example: She doesn’t want her husband taking pictures with his Android because she’s certain the iPhone does the job better.
Her husband naturally feels otherwise on matters Android. “He’s such a Google psycho,” she said, somewhat in jest. (But only somewhat.)
And the battles can sometimes be just as bad — or even worse — when it comes to teens and twentysomethings, who tend to favor the iPhone, according to a recent Wall Street Journal story. The piece quoted 20-year-old iPhone user Abdoul Chamberlain, who declared in a video posted online: “You’re telling me in 2023, you still have a ’Droid? You gotta be at least 50 years old.”
Still, I know there are some real advantages to Android phones. For starters, the Android technology is open-sourced, so it’s available to a variety of phone manufacturers (not just Google, that is). In turn, that means there are lots of options to suit every budget and every taste.
And that helps explain why Android technology is the global leader when it comes to mobile operating systems — by a margin of about 72% to the iPhone’s IOS system’s 27%, as of December 2022 — even though the iPhone dominates in the U.S. Since Android phones can be cheaper, that means they have plenty of appeal in countries where there’s less disposable income.
By contrast, if you want the iPhone technology, you gotta buy an iPhone. So much for the free market. It’s a point that was hammered home when Apple CEO Tim Cook was asked about making it easier for Android and iPhone users to message each other, a clear issue that many of us have run across. His response: He’d rather just convert the Android crowd to iPhones. (I reached out to Google and Apple for comment about their respective technologies and platforms, but didn’t receive an immediate response.)
“‘It’s almost a class issue.’”
Obviously, there’s a lot more to unpack about the differences between iPhones and Android phones. Again, I’ll leave it to the real pros to discuss, though I will say I find my iPhone very intuitive to use, and rarely subject to any glitches. And that’s what I care about, for the most part.
My real point is that we already have enough to fight about in this world. So, why do I have to feel that every time I discuss my iPhone with an Android user, I risk getting into what feels like a heated political argument?
Ironically, there’s some evidence that the divide between Android and iPhone can fall along party lines, with Android users leaning right and iPhone ones leaning left. Others say it speaks to different societal and cultural chasms.
“It’s almost a class issue,” Joe Karasin, a North Carolina resident and dyed-in-the-wool Android fan, told me. Karasin is another one who lives in a household split in terms of phone loyalties — his wife swears by her iPhone.
Then again, he says there are other things that divide the couple. “She loves ranch dressing. I think blue cheese is superior,” he said.
If it makes Karasin feel any better, I have to say I’m a blue cheese fan, too. But I’m not going to go to war over it. Nor do I want to fight with the Android users in my world.
Just don’t talk to me about the New York Yankees. Their fans are clueless idiots.
Hello and welcome to Financial Face-off, a MarketWatch column where we help you weigh a financial decision. Our columnist will give her verdict. Tell us whether you think she’s right in the comments. And please share your suggestions for future Financial Face-off columns by emailing our columnist at lalbrecht@marketwatch.com.
Fall is almost here, but if you follow the consumer calendar this period is better known as pumpkin-spice latte season at Starbucks
SBUX,
and new iPhone season at Apple
AAPL,
The PSL is now 20 years old and the iPhone is 16, but every year, Starbucks and Apple try to get you to fall in love all over again with their headline-grabbing products.
The nutmeg-coated latte will cost you at least $6.45 for a grande in New York City. The latest iPhone 15 starts at $799 for the basic model, $899 for the 15 Plus, $999 for the Pro and $1,199 for the Pro Max, the company said when it unveiled the product lineup Tuesday.
“These are the best and most capable iPhones we’ve ever made,” Apple CEO Tim Cook said.
If you’re an iPhone owner nearing the end of a two-year cell phone contract, there’s a good chance you have an iPhone 13. How does the iPhone 15 stack up against the iPhone 13, and is it time to upgrade?
Why it matters
If you take Apple’s word for it, upgrading matters because of all the new features the company trumpeted at Tuesday’s event, including the iPhone 15’s “all-day” battery life (Apple didn’t say how many hours this means); the fastest smartphone chip “ever” for the 15 Pro and Pro Max; a “state-of-the-art telephoto camera” on the 15 Pro Max; a lightweight yet thinner and more durable titanium casing on the Pro and Pro Max models; and satellite-powered roadside assistance through AAA on all iPhone 15 models.
Are those enhancements enough to justify spending the cost of a laptop or vacation on a phone? With inflation still driving higher prices on everyday essentials, shoppers may be reluctant to rush out to buy the new iPhone, even though Apple kept the prices the same as last year on three of the iPhone 15 models. Some 37% of consumers say they plan to get the latest iPhone this year; that’s up from 29% in 2021, according to surveys by WalletHub.
When deciding whether to upgrade, first sit down and think about how you use your phone, said Nicholas De Leon, a tech expert at Consumer Reports. “If you’re someone who doesn’t use it for much, if you scroll through Instagram
META,
and then text your husband, I don’t know that you need a new phone to do that,” he told MarketWatch before the Apple product launch. But if you’re a TikTok influencer whose livelihood depends on churning out high-quality videos, the upgrade could make sense.
“The iPhone 15’s improvements won’t change the lives of typical iPhone users, but paying off debt will.”
As for the 13 vs. the 15, one of the most notable differences (other than the new type of charging port) is that the 15 has the “Dynamic Island,” a mini control hub on the phone’s home screen that shows you information such as what song you’re listening to, or who’s calling you. Apple described this feature as “magical.”
De Leon is not convinced: “Is that enough to rush out and upgrade?” he asked. “Ehh. The Dynamic Island is neat but not what I would call transformative. But it’s a nice bonus if you do upgrade this year.”
Both the iPhone 15 Pro and 15 Pro Max have ProMotion display, which was only available previously on the 13 Pro. It makes animation and other movements appear much smoother, which could be important to you if you’re a gamer.
The iPhone 15 also has a faster chip, which amounts to a “decent, if not mind-blowing upgrade” over the iPhone 13, according to the product-review site Tom’s Guide. iPhone shoppers who want to upgrade from an iPhone 13 but don’t want to spring for an iPhone 15 may want to consider buying the iPhone 14 Pro, according to Tom’s Guide, because it has most of the same improvements, with the exception of the USB-C charging port.
The verdict
Skip running out to buy the iPhone 15. Now is not the time. Many households are on shaky financial ground. Credit-card debt is at a record high, and student-loan payments are about to start up again. The iPhone 15’s improvements won’t change the lives of typical iPhone users, but paying off debt will.
Don’t miss: ‘iPhones are depreciating devices:’ Should you buy an iPhone 15 or invest $800 in Apple stock?
My reasons
There was a time when getting the newest iPhone made a much bigger difference for the average iPhone user. Early iPhone users couldn’t even copy and paste on their phones. At this point the annual changes are pretty incremental. But Apple still uses its annual event to drum up media coverage and influence its stock price. This year the latter didn’t happen; Apple shares slipped after Tuesday’s event.
The typical phone user is probably better off ignoring the hype and making a decision based on their needs. “They’ve always been good at the razzle dazzle showmanship aspect of this,” De Leon said. “But I just look at ordinary folks in my life and feedback from readers, about what people are doing with their phones. ‘Not much’ is kind of the answer.”
“You can also extend the life of your existing phone. If your iPhone 13 is running out of pep, you can get the battery replaced.”
Instead of buying a new phone, you can extend the life of your existing one. If your iPhone 13 is running out of pep, you can get the battery replaced by Apple or at Best Buy
BBY,
for $89, according to both company’s websites. That could buy you another year or so, at which point you can get yourself a new iPhone 16 (if the company calls it that), which will probably feel like marked improvement over your current device.
Another tip: don’t let the length of your cell phone contract sway you. Now that contracts at some carriers run three years long, spending $100 more to get the fancier iPhone model will cost you about $2.80 per month over 36 months. That removes the financial sting, which can lead to buying a more advanced phone than you really need, said Josh Lowitz, co-founder of Consumer Intelligence Research Partners, or CIRP, which publishes a Substack newsletter on Apple.
“[It] eases the decision to buy the more expensive phone and it subtly encourages you to buy the more expensive phone, because you’re expecting to own it longer and you want to future-proof your phone,” Lowitz told MarketWatch.
In other words, if you know you’re going to hold onto your phone for three years, you may buy one with more features and computing power than you actually require for your everyday tasks, because you may worry your phone will start to feel outdated in 12 or 24 months. Ignoring that concern could save you $100.
See also: How does the iPhone 15 compare to the latest Pixel and Galaxy devices?
Is my verdict best for you?
On the other hand, if the safety features that Apple has been touting in recent years are important to you, the iPhone 15 could be worth it. The iPhone 13 doesn’t have the Emergency SOS feature that lets users text emergency responders via satellite when they’re out of cell phone range; that started with the iPhone 14.
For the iPhone 15 series, Apple has rolled out satellite-powered emergency roadside assistance through a partnership with AAA. The service is available for free for two years for all iPhone 15 buyers. “Apple is leaning into three critical, broad attributes: safety, privacy and health apps,” said Mike Levin, co-founder of CIRP. “All three are very personal to people. It’s very seductive. Those are messages that resonate very hard with many many different demographics.”
If you decide to upgrade, don’t forget that you can often get a discount on a new phone by trading in your old device. Here’s a look at the deals on offer from Verizon
VZ,
T-Mobile
TMUS,
and AT&T
T,
Tell us in the comments which option should win in this Financial Face-off. If you have ideas for future Financial Face-off columns, send me an email at lalbrecht@marketwatch.com.
Text size
Apple stock fell 1.7% Tuesday after the company’s product launch event. (Photo by Eric Thayer/Getty Images)
Apple
’s
long-awaited iPhone 15 launch left investors disappointed, and Wall Street doesn’t seem enthused, either.
The world’s most-valuable company unveiled its new iPhone models Tuesday, and things went pretty much as expected. The one surprise was the lack of a price increase for the iPhone Pro, largely expected by analysts, although
Apple
did hike the starting price for the Pro Max by $100.
Apple stock (ticker: AAPL), which fell 1.7% to $176.30 Tuesday, has climbed an average of 5% in the three months following an iPhone release, according to Dow Jones Market Data. In premarket trading Wednesday,
Apple
stock is down 0.5% to $175.47.
D.A. Davidson analyst Tom Forte doesn’t see Apple stock getting a boost after the latest phone launch. “Unlike years past, we believe the company may not be able to rely on strong iPhone sales to drive its share price higher,” he wrote in a note Wednesday.
Forte noted that management was guiding for revenue to decline in the September quarter despite the iPhone 15 release date of Sept. 22. He also cited the “potential for lackluster sales” in China. He reiterated a Neutral rating on Apple stock and a price target of $180.
KeyBanc analysts, led by John Vinh, also saw the product launch as being “slightly negative” for the stock, but maintained an Overweight rating and a $200 price target.
“We see the September event as a modest negative for Apple given a lack of expected price increase for the Pro model, features that lack a compelling motivation for consumers to upgrade, and modestly less aggressive promotions from carriers,” they said.
Evercore ISI analysts viewed the event as “mildly disappointing,” and said a price increase for the Pro would’ve helped mitigate the impacts of Huawei’s recently launched new smartphone.
“Investors typically go into this event with relatively low expectations given it has been a long time since we have seen a major change to the iPhone design or functionality, but investors were hoping to see a $100 bump to the cost of the Pro, which would’ve helped offset any potential headwinds from Huawei’s Mate 60 Pro Launch,” they said. They still have an Outperform rating on the stock, with a price target of $210.
Not everyone saw the launch event in a negative light. Wedbush analyst Dan Ives hiked his price target on Apple stock to $240 from $230, kept an Outperform rating, and said the upgrade cycle over the next year will surprise to the upside. He wrote that no price increase for the iPhone 15 Pro was a surprise, but that the hike for the Pro Max was a “smart strategic move.”
He expects a greater proportion of consumers to shift toward the Pro models from the basic model, in a 75% to 25% split, compared with the 60% to 40% seen in recent years—a “major tailwind” for the company’s average selling price.
“We believe the robust consumer product cycle continues globally for Cook & Co. despite the noise, with the iPhone 15 giving Apple additional momentum heading into the all-important holiday season,” Ives wrote.
Citi analysts also saw the positives, noting that “flat pricing on the three models could help lift units in a tough macro environment.” They said Apple is more focused on maximizing gross profit per unit from consumers migrating to premium phones, adding that the iPhone 15 would drive higher premiumization than the iPhone 14 range. They maintained a Buy rating on Apple stock with a $240 price target.
Write to Callum Keown at callum.keown@barrons.com
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Apple CEO Tim Cook at a 2022 Apple event in Cupertino, Calif.
Justin Sullivan/Getty Images
Brace yourself. This coming week, the tech sector is headed for a Grade A harmonic convergence, with three major pieces of news aligning in a way that could shift the dynamics of the technology sector in dramatic and unanticipated ways.
Within the span of a few days,
Apple
will launch an updated iPhone; the Department of Justice will finally bring its three-year-old antitrust case against Google to trial; and the U.K.-based chip design firm Arm Holdings will likely go public.
Each event carries potential payoffs for investors, along with big risks.
Just Another Phone: On Tuesday, Apple (ticker: AAPL) will hold its annual fall launch event, dubbed “Wonderlust” this year. The event will almost certainly be focused on the debut of the iPhone 15. (Analysts also expect new Apple Watches and potentially updated AirPods.) No one expects a major iPhone overhaul—the most notable change is likely to be a shift from Apple’s proprietary Lightning connectors to the more widely used USB-C standard. There will be updated processors, improved cameras, a thinner bezel, and a few other tweaks. Prices are expected to ratchet up from iPhone 14 levels. Bulls anticipate a boost to iPhone sales from customers replacing older phones—Wedbush analyst Dan Ives estimates that a quarter of the 1.2 billion iPhone install base is at least four years old.
But there are reasons to worry. Consumer spending is far from robust, and mobile phone sales have been softening for many months. According to Counterpoint Research, global smartphone shipments were down 9% in the June quarter from a year ago. Meanwhile, Apple faces double-trouble in China, where the new Huawei Mate 60 Pro smartphone appears to be taking share from Apple. Worse, The Wall Street Journal reported last week that China has banned the use of iPhones and other foreign-branded phones by government officials.
Morgan Stanley analyst Erik Woodring argues that the 6% slide in Apple shares on China fears is overdone. But he notes that the market’s worries go beyond the fate of the iPhone 15.
Woodring writes that “China could potentially be on the path to becoming more nationalistic, a move that would put over $30 billion of operating profit at risk, should China decide to limit Apple’s access to the Chinese market.” He sees that grim outcome as unlikely, given Apple’s large role in China’s economy. Tuesday’s launch won’t settle anything, but it will be followed by an acute focus on the pace of sales in the early going.
Arm’s Race:
SoftBank Group
(SFTBY) bought the chip design firm Arm Holdings in 2016 for $32 billion. In 2021, SoftBank agreed to sell Arm to
Nvidia
(NVDA) for $40 billion in cash and stock, before the deal collapsed under scrutiny from regulators. SoftBank immediately began making plans for an initial public offering. This past week, Arm set a price range of $47 to $52 a share for the pending deal, which implies a valuation of about $50 billion. The IPO is expected to price Wednesday night, with Arm trading on the Nasdaq starting Thursday.
SoftBank’s valuation hopes are ambitious. Arm’s revenue was flat last year, at $2.7 billion. The top of the price range implies a valuation of nearly 20 times trailing revenue, higher than almost any other technology company. Arm is reaching for a value about in line with artificial-intelligence giant Nvidia, but without the growth. It’s a stretch.
And there’s a wild card: the outsize role that China plays in Arm’s fate. Arm is even more reliant on China than Apple, accounting for 25% of its revenue. China-related risks take up three full pages in the Arm IPO prospectus.
No question, Arm is a crucial player in the global chip market—almost every smartphone uses an Arm-designed chip. There’s a long list of tech companies—including Apple, Google, Intel, Nvidia,
Samsung
,
and
Taiwan Semiconductor
—interested in buying IPO shares, according to the Arm prospectus. But Arm’s China exposure could unnerve investors. The bigger risk is that a weak showing for the IPO could block other tech companies from going public this year.
Searching for Justice: Three years ago, the Justice Department sued Google, arguing that the
Alphabet
(GOOGL) unit has an illegal monopoly in the internet search market. That case goes to trial in federal court in Washington, D.C., on Tuesday. In its 2020 complaint, the government said Google has used “anticompetitive tactics” to maintain and extend its near-monopoly position in internet search and search advertising. Google has called the lawsuit “deeply flawed.”
One key issue at the trial will likely be Google’s long-running position as a search provider to Apple for the iPhone and its Safari browser. Any attempt to untangle the connection could be a boon to
Microsoft
,
which operates the Bing search engine. How ironic is that?
Another possibility is the court mandating an end to the exclusive relationship between Apple and Google, spurring Apple to develop its own search engine. Now, that would be a big story indeed.
Write to Eric J. Savitz at eric.savitz@barrons.com
Apple CEO Tim Cook holds the new iPhone 14 at an Apple event at their headquarters in Cupertino, California, September 7, 2022.
Carlos Barria | Reuters
Apple is holding its most important launch event of the year on Tuesday at its headquarters in Cupertino, California, where it’s expected to unveil new hardware, including the iPhone 15.
Apple will present a prerecorded video featuring company executives to launch the products, which will be streamed on YouTube and Apple’s website. Last year’s event lasted about an hour an a half. Apple has used prerecorded videos for its product showcases since 2020.
Apple’s launches are important for the company and build hype for the products and set the stage for a marketing blitz heading into the December quarter, its biggest sales period of the year. Thirty-one million people have watched Apple’s YouTube video from last year’s launch, revealing that customers still like to get information directly from the company.
This year, the tech giant is hoping the new iPhones can bust a sales slump, fend off renewed competition from Huawei and persuade owners of Android phones to switch.
Apple also announced its new VR headset, the Vision Pro, in June ahead of a planned launch in 2024. The company could provide an update on its efforts to attract developers, but more details about that product are likely not to be released until next year.
Apple’s Macs and iPads are unlikely to see new reveals on Tuesday, given the company usually prefers to give them their own events. Last year, Apple announced new iPads through a press release.
This year’s launch invitations have the tagline “Wonderlust,” although the taglines don’t necessarily preview what the company is announcing. CNBC will be covering the launch live from Apple’s headquarters and with a live blog on CNBC.com.
Last year, Apple announced new iPhones, Apple Watches and updated AirPods at its September event. Here’s what to expect from this year’s edition:
iPhone 15: USB-C and titanium
Apple’s invite to its Sept. 12 event.
Apple
Apple is expected to release four new iPhone models, continuing the pattern that’s been in place since 2020. If Apple keeps its naming pattern, this year’s models will share the iPhone 15 brand.
Apple is likely to release two sizes of middle-range iPhones, one with a 6.1-inch screen and one with a 6.7-inch screen, as well as two sizes of higher end “Pro” phones with titanium casing and better cameras, according to reports from Bloomberg News, TF International Securities hardware analyst Ming-Chi Kuo and Wall Street analysts.
This year, the biggest change is expected to be a USB-C charging port, replacing Apple’s proprietary Lightning port, which was introduced in 2012 as the iPhone charger “for the next decade.”
A USB-C charging port on iPhones will match the same charging port on Android phones, newer laptops, iPads, wireless headphones and other gadgets.
The change is being spurred by new European regulations which require a common charging port. Apple is unlikely to mention that the change was required by a new law, but it will probably emphasize the positives for users, such as convenience and faster charging. It might also give the port a proprietary Apple marketing name.
Apple will “comply” with European Union regulation that requires electronic devices to be equipped with USB-C charging, said Greg Joswiak, Apple’s senior vice president of worldwide marketing. That will mean Apple’s iPhones, which currently use its proprietary Lightning charging standard, will need to change to support USB-C.
Jakub Porzyck | Nurphoto | Getty Images
New Pro models could also get a titanium casing, replacing the stainless steel used in the past few models. Titanium is lighter than steel, reducing the phones’ total weight. Event invitations show an Apple logo in what looks like a titanium finish.
Lower-end phones — expected to be called simply iPhone 15 — could get an upgrade to what the company calls the “dynamic island,” or a cutout that holds the phone’s facial recognition cameras toward the top of the screen. Last year’s Pro models ditched Apple’s “notch” for the undulating window, which can show real-time updates, such as how far away an Uber is or what’s playing on the music app. The mute switch, which has been present on iPhones for over a decade, could gain new functions as a customizable “action button.”
Apple is also likely to focus on camera and chip improvements as reasons for the upgrade. The biggest and most expensive iPhone model, the bigger Pro, could get a new lens that can zoom with twice the strength as the 3x zoom lens on the iPhone 14 Pro, according to Bloomberg.
One open question is whether Apple will raise price points. Some analysts think so, noting rising costs for parts like memory or processors. However, Apple did not raise U.S. iPhone prices last year under similar conditions. It does tweak its prices around the world regularly after launches and in response to currency fluctuations.
Apple Watch and accessories
Apple Watch Ultra.
Sofia Pitt
Last year, Apple released the Apple Watch Series 8 and a new high-end titanium model called the Ultra in September.
Both are likely to get updates this year, although Apple’s Watches don’t typically get as many major changes from year to year as the iPhones. Apple’s mainstream watches have had the same size and shape since 2018.
The company is likely to upgrade the chip inside the new watches, as well as update its health sensors, according to analysts. But Apple may save bigger changes for the device’s 10th anniversary next year.
Apple also has several accessories that use Lightning connectors, such as some of its AirPod models, Beats headphones, mice and keyboards.
AirPods Pro will get a new feature that doesn’t need new hardware called Adaptive Audio. It uses machine learning and software to intelligently turn down the volume and noise canceling so users can be aware of their immediate surroundings.
Apple will likely update its accessories to work with USB-C, but the updated accessories may not be discussed on Tuesday, or could be released later.
iOS 17
StandBy Mode in iOS 17
Todd Haselton | CNBC
Even users who don’t plan to pick up a new iPhone or Watch will get new software for their devices. Apple previews its latest operating systems for its devices in June, then releases them in September alongside new iPhones.
Many of Apple’s best new features don’t require new hardware and will be available to everyone with an iPhone released since 2018.
Here’s some of what is new in iOS 17:
- The software includes a revamp of the caller ID screen called “contact posters” where users can choose the images that show up when they call other iPhone users.
- Autocorrect has been improved using a transformer-based language model, the same technology underpinning applications like ChatGPT.
- A new Journal app encourages users to save thoughts and feelings on a daily basis and uses on-device machine learning to spot patterns without sending the data to a server in the cloud.
- A new standby dock mode turns your phone into a clock with widgets that can show alarms, appointments or other updating information.
- A business card replacement called NameDrop allows two iPhone users to exchange personal information by tapping their phones together.
- Offline Apple maps make it possible for users to save huge swaths of roads and land to navigate even without cellphone service.
In a dreary smartphone market, Apple Inc. could do something it’s never done before.
The consumer-electronics giant has a chance to finish the year as the global leader in smartphone shipments for the first time, according to analysts at Counterpoint Research.
Read: ‘Magnificent Seven’ stocks are losing some of their shine, but their bonds are doing fine
Consumers continue to hold on to their smartphones for longer, one reason that the Counterpoint team expects overall shipments to fall 6% this year, to 1.15 billion units. That would be the lowest level in a decade.
“But we’re watching [the fourth quarter] with interest because the iPhone 15 launch is a window for carriers to steal high-value customers,” Jeff Fieldhack, Counterpoint’s North America research director, said in a release.
With a big base of current iPhone 12 owners due for upgrades, “promos are going to be aggressive, leaving Apple in a good spot.”
Counterpoint notes that premium smartphones have been picking up share within the market and called out China as a region where that trend holds true. Apple
AAPL,
focuses on the premium market and is expected to debut its next lineup of devices, the iPhone 15 family, in September, and sales likely will begin later that month or in early October.
Don’t miss: Meta’s stock joins Apple, Microsoft and Nvidia shares in correction territory as tech-stock boom fizzles
Projections from Counterpoint put Apple the closest its ever been to capturing the top spot. “We’re talking about a spread that’s literally a few days’ worth of sales,” Fieldhack said. “Assuming Apple doesn’t run into production problems like it did last year, it’s really a toss-up at this point.”
Samsung Electronics Co. Ltd.
005930,
was the market leader in shipments last year, and it held the top spot in the first quarter of this year.
Read on: Red flags waving for tech stocks as AI bounce fades, China fears escalate
Apple will “comply” with European Union regulation that requires electronic devices to be equipped with USB-C charging, said Greg Joswiak, Apple’s senior vice president of worldwide marketing. That will mean Apple’s iPhones, which currently use its proprietary Lightning charging standard, will need to change to support USB-C.
Jakub Porzyck | Nurphoto | Getty Images
The next iPhones, expected in September as usual, could have a feature that no iPhone has ever had: a generic charging port.
The new iPhone models could include a USB Type-C charger port on the phone’s bottom, according to analysts and media reports. That’s the same charging port that’s used on nearly every laptop sold in the past few years, as well as Android phones, iPads, and other gadgets from Kindles to headphones to drones and heated blankets.
The USB-C connector would replace Apple’s proprietary port, the Lightning port, which has graced the bottom of every iPhone model released since 2012.
The shift would be one of the biggest improvements to the iPhone in years for consumers.
IPhone users would no longer need to bring two different cables for their phone and other gadgets while traveling. Android users could borrow chargers from people who own iPhones. IPhone users could borrow chargers from anyone using a newer laptop. Schools and businesses could standardize on one type of charger for their entire fleet of devices. USB-C could even allow iPhones to access faster charging speeds.
While Apple hasn’t confirmed that its new iPhones will feature a USB-C charging port, and didn’t respond to a request for comment, the change is bound to happen.
A new regulation passed by the European Union last year requires USB-C ports on new smartphones by 2024. Apple is unlikely to produce an iPhone model solely for the European market. “Obviously, we’ll have to comply,” Greg Joswiak, Apple’s chief marketer, said last year.
Consumer benefits, like the reduced “lock-in” to a single manufacturer, helped form the reasoning behind the new regulations. The EU estimates the rule could save Europeans 250 million euros per year on chargers. The EU also said old chargers account for about 11,000 tons of e-waste per year in the region.
Apple opposed the law. In a 2021 letter, Apple said that the regulation would hamper future charging innovation, could require it to take devices off the market early, and could confuse consumers with additional information.
“We are concerned that regulation mandating just one type of connector for all devices on the market will harm European consumers by slowing down the introduction of beneficial innovations in charging standards, including those related to safety and energy efficiency,” Apple said in the letter.
USB Type-C hub connected to a laptop with cables connected for peripheral computer device equipment
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Whenever Apple changes the ports on its devices, skeptics believe it’s just an effort to make more money on its premium-priced cables. Apple’s most capable USB-C cable retails for $39.
For example, when Apple added USB-C chargers to MacBook laptops starting in 2015, it drew jokes about the dongles required to plug older accessories into the new laptops.
When Apple removed the headphone jack from the iPhone in 2016, it spurred months of commentary, both for and against the “courageous” change, about whether Apple was pushing people to its more expensive wireless AirPods. It still inspires takes today about whether it was the right decision; most Android phones have followed suit.
But while Apple makes money from its cables, and has a program where accessory makers pay for access and official Apple parts called “MFi,” Apple’s strategic focus is making sure that its products work together without major flaws so its users continue to buy new iPhones. It’s not nickel-and-diming dongles and accessories.
Cable sales are reported in Apple’s Wearables, Home, and Accessories product line, which reported $41 billion in revenue in 2022, although Apple Watches and headphones make up the majority of the sales. That’s much smaller than the $205 billion in iPhone sales Apple reported during the year.
Possible downsides
Apple’s argument that a new charger will cause confusion holds more water. With the Lightning port, companies that wanted to make officially approved accessories have to apply for Apple’s program, and pay for access to specifications and official Apple parts. For consumers, this meant that while there were a few knockoff Lightning devices to avoid, at most stores, the dock or clock or cable users purchased would just work.
USB-C is a different beast. It’s a “standard,” which means the exact specifications are published by a group of companies and individuals working together. Anyone can use those specifications to build cables, and you don’t need to enroll in an Apple-administered program.
This also means that many iPhone users will learn that not all cables with a USB-C connector are created equal. Some cables can transfer data quickly, and some can’t. Back when the standard was first introduced, some cables could even cause damage to devices because they were misconfigured, though this hasn’t been as common in recent years. Some cables even support “Thunderbolt,” a modern data transfer standard for powerful accessories such as monitors or docks, although at a higher price. There are websites that test and approve cables that are “compliant” with the USB-C standard.
Apple will likely let users know if a cable is appropriate for charging an iPhone, through software warnings, what it carries at its retail operation, and through its MFi program.
But it’s clear that the charger port switch raises possibilities for frustrating situations that didn’t exist when Apple stuck with its proprietary charger. Apple’s current troubleshooting document for USB-C charging issues on Mac tells users to test with Apple’s official cables and power adapters.
The world won’t change overnight when Apple’s iPhones have USB-C ports. Apple still develops some of its own proprietary charging standards, such as MagSafe, which uses magnets to affix a charging puck to the back of an iPhone. Its Apple Watch uses a unique magnetic charger as well. Even after using USB-C as the only charging port on its MacBook laptops for years, Apple recently introduced a proprietary magnetic charger on recent models.
Eventually, Apple watchers predict, the company is likely to try to remove ports entirely from the iPhone, but until then, Apple aficionados with multiple products will still need to carry several different charging cables.
Still, the USB-C port is a step in the right direction for iPhone users, even if Apple is grumbling along the way. Apple preferred an approach that would standardize charging bricks but allow cables to be specific for a type of device.
“What that allows you to do is have over a billion people — it’s not a small number of people have that connector on the left [pointing to the Lightning cable] — to be able to use what they have already, and not have to be disrupted,” Apple’s senior vice president of worldwide marketing, Greg Jozwiak, said in 2022.
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