Launching of the iPhone 15 has been hampered by issues
With concerns over market access in China and competition hanging over the most valuable listed company in the world, Apple is anticipated to introduce a new iPhone 15 lineup on Tuesday.
More than half of Apple's $394.3 billion in revenue last year came from the iPhone, but selling in China, the Cupertino, California company's third-largest market, presents fresh difficulties.
The Chinese government has increased some restrictions on using iPhones, so while Apple's newest phones are likely to have new charging ports, titanium casings, and cameras, their launch will occur at its Apple Park headquarters at 10 a.m. PT (1700 GMT).
Apple will also have to grapple with competition from Huawei Technologies (HWT.UL), which was its top rival in China’s premium smartphone market until U.S. export controls ruined Huawei’s phone business in 2019. The Mate 60 Pro, a high-end phone from Huawei that incorporates Chinese chips, went on sale last week. Some US senators contend that these chips were produced in contravention of American trade restrictions.
Huawei wants to gain an edge on Apple with add-on features like satellite calling that relies on China’s government-backed network. Apple’s current iPhone lineup includes satellite capabilities, though they are meant only for emergency situations.
Apple on Tuesday is likely to focus on its new product lineup. By far the biggest change for most Apple customers will be a switch from Apple’s propriety “Lightning”.
It will be interesting to see how Apple responds to competition from Huawei, especially considering Huawei's recent release of the Mate 60 Pro with unique features like satellite calling. Apple's focus for today's event is expected to be on its new product lineup, with the most significant change being the switch from Lightning charging cables to USB-C. This change, prompted by European regulations, will likely be positioned as an upgrade due to the faster data speeds and improved video transfer capabilities.
Analysts are also anticipating the introduction of a "periscope" camera technology for better zoom capabilities, as well as titanium cases and upgraded chips. The question remains whether these features will be reserved for a new top-end device or if smaller upgrades will be made to cheaper models.
Apple is expected to increase the average price per phone sold to boost revenue, but it's unclear whether this will be done by raising prices across the board or only on premium versions. Despite the overall decline in the global smartphone market, Apple's shipments declined the least among major smartphone makers, indicating its resilience.
Additionally, analysts are curious about Apple's plans regarding generative artificial intelligence, a technology trend that powers applications like OpenAI's ChatGPT and Microsoft's "Copilot." Apple has been tight-lipped about its intentions in this area, but there is speculation that they may tease an advanced form of Siri during the event.
Overall, there is anticipation for Apple's new product lineup and the potential surprises they may unveil.