It wouldn't be an Apple event without some hoopla. But the company's
upcoming product announcement on Monday doesn't seem to be stirring much
passion.
Apple has invited tech reporters and analysts to its Silicon
Valley headquarters, where CEO Tim Cook is expected to unveil some new
additions to its current family of iPhone and iPad devices. So far,
however, there have been no hints of any dramatic announcements, such as
last year's highly anticipated Apple Watch debut, or major initiatives
like the company's long-rumored but yet-to-materialize streaming TV
service.
Apple could use a shot in the arm. iPhone sales are
levelling off, after surging last year to record levels that made Apple
the world's biggest company by stock market value. And many are
wondering if Cook can come up with another big hit.
(Also see: Apple Aims to Bolster Lineup With New iPhone)
And the very
next day, Apple is set to square off in court against the FBI over its
demand that the company help it unlock a mass shooter's encrypted
iPhone. While that dispute has drawn heated rhetoric, most Apple
watchers say it's unlikely to play a major role at Monday's product
launch.
"There's been a lot less noise" around Monday's event,
compared with similar gatherings in the past, said Gartner tech analyst
Brian Blau. Even so, he cautioned against ruling out any surprises.
"Apple is such a secretive company. They do keep things under wraps as
long as possible."
While Apple has been mum about its plans,
several analysts expect the company will introduce an upgrade to its
older, four-inch iPhone 5s - aimed at consumers who haven't sprung for
the bigger-screen iPhone 6 models that Apple introduced two years ago.
The new phone may come with features like Apple Pay and the company's
fastest processor, which have previously been offered only on versions
of the iPhone 6.
Analysts and tech blogs say Apple also may unveil
a new model of the iPad Pro, which the company introduced last year
with several features - like a detachable keyboard and stylus - designed
for business users.
A four-inch iPhone isn't likely to see the
kind of blockbuster demand that Apple enjoyed with its large-screen
iPhone 6 and 6s models, according to several financial analysts, but it
could help Apple boost overall sales and draw some additional users into
the market for Apple's online services, including Apple Music, Apple
Pay and the highly profitable mobile App Store.
"We think the
numbers will be modest," said RBC Capital Markets analyst Amit
Daryanani. So does Steven Milunovich of UBS, who believes Apple could
sell 12 million of the new phones this year. By comparison, Milunovich
estimates Apple has sold 265 million of the larger iPhone 6 models over
the last two years.
Much of that surge came from Apple's 2014 move
to offer a bigger, 4.7-inch screen with the iPhone 6 and an even-larger
5.5-inch screen with the 6 Plus. Last year's iPhone 6s and 6s Plus also
had those larger screens, but otherwise weren't dramatically different.
Still,
some analysts say the new phone could help Apple as it struggles to
match last year's sales. While shoppers bought a record 74.8 million
iPhones in the final three months of 2015, Apple has signaled demand in
the current three-month period will fall short of the 61 million iPhones
sold in the January-March quarter last year.
Even with new
features, analysts say the 4-inch iPhone should sell at a lower price
than the larger models, which list at $549 (roughly Rs. 37,000) or more. That means it may
appeal to some shoppers, especially in overseas markets, who want a
premium phone at lower cost. It may also draw interest from owners of
older iPhone 5 models who find the larger models are unwieldy to hold.
That
could be enough to give Apple a boost through the spring and summer
months, when iPhone sales historically have slowed, Daryanani said in a
recent report. Many analysts expect Apple will release a more
dramatically revamped new iPhone 7 in the fall.
The proliferation
of iPhone and iPad models may seem contrary to Apple's traditional focus
- espoused by late Apple cofounder Steve Jobs - on producing fewer
products while making them superior to competitors' offerings. By
contrast, Samsung is known for selling a multitude of phones and tablets
at various sizes and prices. But Gartner's Blau, among others, noted
that Apple has gradually expanded its family of devices in recent years
to reach more categories of consumers, which also helps the company sell
more online goods and services.
"Tim Cook has said he thinks
there's a lot of life left in the iPhone product line, despite the media
and investor community pressuring Apple over the potential decline in
premium iPhone sales," Blau said. "I think it's exactly these types of
things that he has in mind."
Apple's Foldable iPhone to Sport Display With Same Aspect Ratio as iPad Models, Tipster Claims28 March 2025
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