Apple Inc unveiled its latest range of iPhones, a product line that Wall Street expects would start a new cycle of sales growth for the world’s largest technology company.
At a virtual event on Tuesday, the company showed off the iPhone 12 in black, red, blue, green and white with a 6.1-inch (15.5cm) screen. It starts at US$799.
A smaller version, the iPhone 12 mini, costs US$699. The phones use aluminum sides.
Photo: EPA-EFE
There is also an iPhone 12 Pro, starting at US$999 and an iPhone 12 Pro Max that costs at least US$1,099, both with stainless steel edges. The Max has a 6.7-inch screen, Apple’s largest ever, while the regular Pro has a 6.1-inch display. They come in blue, gold, graphite or silver.
Some analysts praised Apple’s pricing strategy, especially the US$699 mini handset, which might entice users with older, smaller iPhones to upgrade.
“The pricing dynamics are the killer app for the phone launch,” Piper Sandler & Co analyst Harsh Kumar wrote in a research note. “Pricing was lower than our expectation, which is important in the current global pandemic.”
Cheaper devices might help increase Apple’s installed base of devices, driving further growth of more profitable services, he added.
The front of the smartphones looks similar to last year’s iPhone 11, but the edges are now flat instead of curved. They all support 5G, a new wireless standard that can transmit data as much as 10 times faster than the 4G LTE technology.
The Cupertino, California-based technology giant has generated relatively little sales growth from its marquee product in the past few years as consumers hold onto their smartphones for longer.
Quarterly revenue from this segment peaked in the first quarter of Apple’s 2018 fiscal year.
This year’s crop of new iPhones marks the first major redesign in three years, which could prompt more upgrades and a new spurt of growth.
Investors and analysts are also bullish on sales in China, where 5G networks are more built-out than in the US.
“With our estimation that 350 million of 950 million iPhones worldwide are currently in the window of an upgrade opportunity, we believe this will translate into an unprecedented upgrade cycle for Apple,” Wedbush Securities Inc analyst Dan Ives said.
The handsets have a faster A14 processor and updated cameras, and use sharper OLED screens, an improvement from last year’s cheaper LCD screens, Apple said.
The company showcased major improvements to the iPhone 12 Pro Max cameras, including video recording and zooming in during picture taking.
The iPhone 12 and iPhone 12 Pro come out on Friday next week, while the iPhone 12 mini and iPhone 12 Pro Max arrive on Nov. 13.
“iPhone 12 mini hits the magic US$699 price point,” long-time Apple analyst Gene Munster wrote on Twitter. “That’s a big deal and slightly expands iPhone’s addressable market. This is the first time in seven years (iPhone 5S) that smaller form factor is part of flagship lineup.”
5G support makes the phones theoretically capable of downloading data much faster, although that would mostly depend on wireless carriers updating their networks.
Apple’s 5G launch comes more than a year after Samsung Electronics Co and other rivals started selling handsets supporting the standard.
Apple said it tested 5G globally with 100 carriers.
It added that the US models would support faster millimeter wave technology.
The handsets also support a new magnetic version of wireless charging called MagSafe. That lets the smartphones magnetically attach to new charging pads from Apple and other providers.
Apple would also offer several new cases to support the new charging system.
Apple did not include headphones or a charging adapter with the new iPhones, a move it said would be beneficial to the environment.
Citigroup Inc analyst Jim Suva said excluding the accessories in the box could spur purchases of AirPods and new charging accessories.
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