SAN FRANCISCO, Sept 8, 2019 (BSS/AFP) – The iPhone will be front and center
at Apple’s upcoming media presentation even as the California tech giant
steps up its efforts in content and services for its devices.
In its trademark, tight-lipped style, Apple disclosed little about its
plans for Tuesday’s event at its headquarters in the Silicon Valley city of
Cupertino.
For years now, Apple has hosted events in the fall to launch new iPhone
models ahead of the holiday shopping season.
Speculation is that Apple will introduce three upgraded iPhones, including
“Pro” models, and a successor to its more affordable iPhone XR, as premium
handset prices hover around $1,000.
Some analysts say services, subscriptions and online content will share the
stage with the company’s glitzy hardware as Apple seeks to shift its focus.
“I think it is going to be the first year the event is going to also be
about services,” Creative Strategies analyst Carolina Milanesi said.
“We might get to see what Apple looks like as a company when they are
talking about services and hardware as one product.”
Milanesi was curious to see whether Tuesday’s presentation includes offers
iPhone deals that “bundle” music, television or game services with new
handsets.
“You have an opportunity to really bring value to the hardware with
services,” Milanesi said.
– TV+ turned on? –
Apple recently released a smartphone-generation credit card in the US and
is keen to launch its TV+ streaming service before Disney goes live with a
rival service in November.
Many wonder whether the launch of Apple TV+ will be among Tuesday’s
announcements.
With Hollywood stars galore, Apple unveiled streaming video plans along
with news and game subscription offerings as part of an effort to shift its
focus to digital content and services to break free of its reliance on iPhone
sales.
The company also plans to launch a new game subscription service called
Apple Arcade internationally by the end of this year.
Apple managed to grow its overall revenues, albeit by a modest one percent,
to $53.8 billion, even as iPhone revenues plunged nearly 12 percent in the
April-June period.
The company delivered strong growth from digital content and services that
include its Apply Pay and Apple Music, along with wearables and accessories
like the Apple Watch and Air Pods.
Some of those accessories could also get upgrades on Tuesday.
– China wild card –
Analysts warn that Apple still faces challenges as rivals chip away at the
smartphone market, in which the iPhone’s share is less than 12 percent.
As the iPhone maker refines its handsets, other makers are pushing into new
areas such as 5G devices and folding smartphones.
Wedbush Securities analyst Dan Ives said in a note to investors that he
expected a “trifecta of iPhone 11s” that will help the company “put a fence
around” its user base.
About a third of the 900 million iPhone users around the world are in an
upgrade “window,” meaning a strong potential for handset sales, according to
Ives.
“While China remains a wild card, we are bullish into Apple’s future” in
the coming year, Ives said.
China accounts for about 17 percent of Apple sales overall, and has
tremendous room for growth, according to Techsponential analyst Avi
Greengart.
The trade war between the US and China has complicated Apple’s effort to
gain ground in that market, where gains by local titan Huawei have come
partly at the California-based company’s expense.
“Apple needs Chinese consumers to treat the iPhone as a preferred premium
brand at a tricky geopolitical moment,” Greengart said.
“Huawei’s premium smartphone, laptop, and tablet sales have been surging
inside China partly based on nationalism as a response to the trade war with
the US and specific US government actions against Huawei.”