New Challenges and Prospects: What Do Markets Expect from Apple's Upcoming Launch of New iPhones?
Apple is set to unveil its new iPhones on Tuesday, at an event that analysts see as facing a significant challenge to surpass a launch that could be described as "dull", especially given the success of competitors in integrating artificial intelligence technologies more broadly into their products.
The highlight of this year's event is expected to be a phone rumored to be called "iPhone Air", inspired by the "MacBook Air" line of slim laptops. The design is expected to focus on making the device thinner than previous versions.
In this regard, analysts have pointed out that Apple will face a technical dilemma in how to integrate batteries and cameras within a thinner structure, while aiming to price it in a mid-range category between the basic iPhone 17 and the higher-priced Pro models, with the goal of attracting a broader segment of consumers.
Commenting on the expected design, Debanjan Chatterjee, Vice President and Principal Analyst at Forrester, said: "It has been a long time since we have seen any significant change in device design, aside from minor incremental tweaks, and the renewal factor in the Air version is likely to drive many iPhone 14, 15, and even 16 users to upgrade."
The expectation is not limited to design alone, as observers believe this phone could represent a transitional step towards the launch of a foldable iPhone in the future, alongside serving as a platform for launching an upgraded version of the voice assistant "Siri", although these features are not expected before next year.
In the context of the foldable phone market, which Samsung entered with its seventh release and Alphabet (Google's parent company) with its third generation, Debanjan Chatterjee estimated that sales of this category still represent less than 2% of total global smartphone sales, expecting it not to exceed 5% "anytime soon".
Apple's entry into this market is particularly important in China, where a large segment of consumers prefers foldable phones, while the company faces a decline in its market share there.
Regarding pricing, historical data indicates that mid-priced iPhones accounted for about a quarter of Apple's total sales, according to Gene Munster, Managing Partner at Deepwater Asset Management. Munster expects Apple to raise prices across different models, possibly by increasing prices for models with larger storage capacities.
Munster added: "They have learned how to deal smartly with Washington; a direct price increase may not be well received. But I believe their costs are rising, and they are committed to expanding their profit margins, and to achieve that, they need to find a way."
In the field of artificial intelligence, which Apple postponed significant improvements to "Siri" last spring due to engineering hurdles, the company compensated for this through a partnership with OpenAI, the developer of ChatGPT. In return, Google's flagship phones are designed to showcase the capabilities of its AI models "Gemini", and reports have indicated preliminary talks between Apple and Google to use "Gemini" to refresh "Siri".
Ben Bajarin, CEO of Creative Strategies, believes that Apple may highlight AI processing capabilities in the new generation of its chips, potentially enabling the launch of a "proxy" version of Siri capable of performing tasks in the background without draining the battery.
Bajarin said: "This could pave the way for a broader type of proxy integration with the operating system, as the operating system will benefit the most from the new chip capabilities in AI processing."
In conclusion, Bob O'Donnell, President of TECHnalysis Research, warned that the time available for Apple to catch up with its competitors in the AI race is now measured in months, not years.
He concluded by saying: "The company has a huge market share in the United States, and most users are completely satisfied. But by this time next year, if Siri's performance remains poor, and if Apple does not launch a foldable phone, I don't know if that satisfaction will continue."
