Apple's new iPhone challenge: offer modest upgrades as essential

The next batch of iPhones can carry a new number in their names, but make no mistake: it is another year "S". If the rumors persist, Apple will unveil for the third year in a row phones with identical design.

Apple will confirm it when it welcomes annual phone launch, with the event starting on Tuesday at 10 am local time, at the Steve Jobs Theater, on the Apple campus in Cupertino, California. The introduction of three new iPhone models is expected to replace iPhone XS, XS Max and XR with the rumor iPhone 11, 11 Max / 11 Pro and 11R. It could also update its iPad and Mac ranges, as well as introduce new AirPod, HomePod and other products. And its streaming services should debut, with fare.

However, it is the new iPhones that will attract the most attention and sales. Devices will likely have faster processors and the latest iOS software – essentially the basic updates required each year. The most important changes should concern a third lens on the back of the Pro models and a second on the R version. The iPhones should also allow to wirelessly charge AirPods on the back of the iPhone. (a feature introduced by Samsung earlier this year with the Galaxy S10) and include an improvement in the identification of faces, among other adjustments.

What new iPhones will probably not have, however, are major changes in their design or functions. The absence of major upgrades comes at a time when all of Apple's competitors have made significant changes to their own designs, on the part of Samsung. Galaxy Note The almost all-screen design of the 10 is associated with the OnePlus 7 Pro's contextual camera. And Apple will not ship in features considered by many as the future of mobile devices: 5G and foldable displays. If you want an iPhone, you will have to wait until 2020, at best.

"Apple is increasingly lagging behind many of its competitors in global innovation, even at a time when the smartphone industry is in a stalemate," said Bob. O Donnell, analyst at Technalysis. "It will be hard to get people excited about the new iPhones."

The iPhone 11 arrives while Apple faces great challenges.

The new tariffs imposed on products imported from China are expected to touch the iPhone and other Apple electronics later this year, which would make the devices more expensive. At the same time, buyers are increasingly opting for cheaper phone models, such as the iPhone XR instead of the XS. In addition, people hang on their phones longer and are reluctant to spend around $ 1,000 a year on a new phone.

And by all accounts, this year's iPhones sound a lot like S models in all but their name.

Apple declined to comment.

Another year S

In the past, Apple has been publishing an S model of its popular phone every two years, enhancing some features while maintaining the same design. Some people have preferred to buy iPhones during these off-peak years because they thought that Apple had perfected the design at that time. But that's when Apple launches a redesigned iPhone that makes fans happy.

Keeping the same design and features three years in a row, Apple gives people no reason to get excited – or upgraded.

Last time, things did not go well. the iPhone 7, published in 2016, looked like the one of 2014 Iphone 6 and 2015 6S – but with an extra telephoto lens on the Plus and minus the headphone jack.

During the fiscal year 2016, which corresponds to the first full year of sales of the iPhone 6S and the first few weeks of sales of the iPhone 7, sales of Apple smartphones units fell for the first time in its history, down 8.4% for the whole year, the number of people who bought the iPhone 6S having decreased. The following year, sales increased from the 2016 level, but remained below 2015 levels.

Unit sales have remained relatively stable – almost stable almost quarterly – for the next two years. Apple, however, continued to report an increase in its sales, thanks to higher selling prices. The 5.8-inch iPhone X started at $ 999, or $ 300 more than the iPhone 8.7-inch and 4.7-inch and $ 200 more than the iPhone 5.5 Plus 5.5-inch.

Apple no longer announces iPhone unit sales, but Strategy Analytics expects the company to sell 9% less iPhone in the first quarter of December, usually the largest one in the world. # 39; Apple.

"Apple iPhone is struggling at the moment, and this year's new models will probably not change anything," said Neil Mawston, analyst of Strategy Analytics. He added that Apple is "waiting", in expectation of its "next wave of upgrades" with an iPhone 5G in the second half of 2020.

"Until then, the iPhone will continue to struggle and lose ground against Samsung and Huawei," he said.

Focus on services

It is this decline in unit sales that has led Apple to look elsewhere for its next growth spurt.

Beyond the iPhones, Apple will probably offer us a clearer preview of some of the services offered in March, namely Apple Arcade and Apple TV Plus. We will probably see a firm date for availability and price – and whether services can be combined for a discounted package.

Apple Arcade is rumor to cost $ 5 a month, Apple TV Plus can bring you $ 10 a month. Services should be launched in November.

While Apple sees these services as the future, iPhone sales are still important as they represent the potential base of customers. You probably do not even think about these services if you have an Android phone.

The future of phones

If you are thinking of buying a device that you will keep for several years, you will probably want your next phone to have 5G. The networks are just beginning, but by the end of next year, coverage should be extended to the United States and many countries. And apart from the iPhone, every major Android device should come with a 5G option in the next few months.

Apple works on a 5G phonebut he's behind his rivals, largely because of his licensing battle with chip supplier Qualcomm. When the two companies reached a settlement in April, Apple was allowed to use the Qualcomm modems again in its iPhones. But that also meant that it was too late to incorporate the 5G into this year's lot of iPhones.

Beyond 5G, Samsung and Huawei have developed phones that have screens that bend. These devices had their problems – Samsung has delayed the launch of its Galaxy Fold five months later to solve the screen problems, and Huawei has not yet started his mate X Despite the original plans to sell it this summer – but foldable phones should be the norm. Even cheaper handset manufacturers, as Alcatel parent TCL, develop devices with foldable screens.

Apple has not yet shown products with folding screens, but it is likely that he is working on something in his labs. He tends to perfect the products before marketing them, even if it means that he is behind his competitors for several months or even years. Nevertheless, too much delay with foldable applications and 5G offers Apple's competitors the opportunity to define the future of phones.

For the moment, Apple will launch its three new devices, which will probably appeal to several groups, said Carolina Milanesi, an analyst at Creative Strategies. Yearly upgrades will appreciate changes to the larger iPhone Max, such as reverse charging.

"Even if it's all about small things, it's helpful to dispel the friction you have today when you own multiple Apple products and are looking for that" better collaboration "experience, a said Milanesi, and people looking at the cheaper iPhone XR would find the second camera lens (at what one expects to be at the same price) or a important selling point.

Now, Apple has to hope that's enough.