On Tuesday, Apple (NASDAQ:AAPL) revealed its latest lineup of iPhones, featuring improvements in camera technology, faster processors, a revamped charging system, and a price increase for its premium model.
The product launch, held at Apple’s headquarters in Cupertino, California, coincides with the company’s efforts to reverse a mild sales decline experienced over the past three quarters. This sales slump has contributed to a roughly 10% drop in Apple’s stock price since mid-July, causing its market value to dip below the remarkable $3 trillion threshold achieved earlier this summer.
Investors, however, did not appear overly impressed with Apple’s latest offerings, as the company’s shares fell nearly 2% on Tuesday, marking a steeper decline compared to major market indexes.
As is often the case with Apple and other smartphone manufacturers, the new iPhone 15 models do not represent a significant technological leap. Nonetheless, Apple has introduced enough new features to its flagship model, the iPhone 15 Pro Max, to justify a $100 (9%) price increase, bringing its starting price to $1,200. This base price also includes an increase in storage capacity from 128 gigabytes to 256 gigabytes compared to last year’s iPhone 14 Pro Max.
Apple has maintained prices for the rest of the lineup, offering the basic iPhone 15 at $800, the iPhone 15 Plus at $900, and the iPhone 15 Pro at $1,000. Although this pricing strategy may squeeze Apple’s profit margins and potentially put downward pressure on its stock price, Investing.com analyst Thomas Monteiro views it as a prudent move, given the backdrop of persistent inflation and rising interest rates that have impacted household budgets. Monteiro stated, “The reality was that Apple found itself in a challenging position leading up to this event.”
The price hike for the iPhone 15 Pro Max could also help Apple drive sales, especially if consumers continue to favor the company’s premium models. Wedbush Securities analyst Dan Ives anticipates that the iPhone 15 Pro and Pro Max will account for approximately 75% of total iPhone sales in the coming year.
All the new iPhone models are set to be available in stores on September 22, with preorders starting this Friday.
One of the most significant changes announced by Apple is the transition to a new charging system for the iPhone 15 models and future generations. The company is adopting the widely used USB-C standard, already prevalent in its Mac computers and many iPads. This shift is necessitated by European regulators’ mandate, set to take effect in 2024, which requires the phase-out of the Lightning port cables introduced by Apple in 2012.
While change can sometimes be challenging for consumers, the transition to USB-C ports may not be overly inconvenient, as the standard is already in use across a variety of computers, smartphones, and devices. Moreover, USB-C typically offers faster charging and data transfer speeds.
The basic iPhone 15 models have been redesigned to include a dynamic cutout on the display screen, known as Apple’s “Dynamic Island,” designed for app notifications. Additionally, these models feature a faster chip similar to the one used in last year’s Pro and Pro Max models. The next-generation premium iPhone 15 models will run on an even more advanced processor, enabling them to handle high-end video games typically associated with gaming consoles.
The iPhone 15 Pro and Pro Max models boast an impressive camera setup with what Apple claims is the equivalent of seven camera lenses, including a periscope-style telephoto lens with a 5x optical zoom, improving long-distance photography. Although it lags behind Samsung’s premium Galaxy S22 Ultra with a 10x optical zoom, it represents an upgrade from the 3x optical zoom featured in the iPhone 14 Pro and Pro Max.
In anticipation of the release of Apple’s mixed reality headset next year, the iPhone 15 Pro and Pro Max also include a spatial video option designed for viewing on that headset.
Apple is using titanium alloy casing for the premium models, the same material used in certain spacecraft.
In addition to the new iPhones, Apple introduced its next-generation smartwatches, including the Series 9 Apple Watch, set to hit stores on September 22. The Series 9 will feature a new gesture control that enables users to manage alarms and answer phone calls by double snapping their thumbs with a finger.
Featured Image: Unsplash @ Zana Latif
