The current crop of Apple (NASDAQ: AAPL) IPhones are not selling too well. Last quarter, Apple announced that its iPhone revenues had dropped nearly 15% from the previous year and released forecasts for the current quarter, suggesting a new quarter of declining iPhone revenue .
It is clear that the current cycle of Apple's products is, failing a better word, a failure.
Fortunately, Apple introduces new smartphones on an annual basis, which means that in September, the company will announce a new generation of iPhone. And, thanks to TF International Securities' respected Ming-Chi Kuo analyst, we now know some of the major upgrades that Apple plans to bring to the table with its upcoming iPhone product line. .
With each new generation of iPhone, Apple has generally made improvements in areas as obvious as the application processor and cameras, and I think that will also be the case with this year's iPhones.
Beyond the most obvious improvements, Kuo claims that the new iPhones will have the following features: ultra-wide band to enhance "positioning and navigation inside", frosted glass case, two-way wireless charging (this which means that the devices must be able to charge other wireless technology devices), improved Face ID technology, larger batteries and rear-facing triple cameras (Kuo's remark is not clear whether this feature all devices or just the top model).
Although nothing seems revolutionary, the upgrades that Apple seems to plan for this year's iPhones seem to be more important than what we found when Apple moved from the iPhone X to the iPhone. iPhone XS.
The "frosted glass case" should allow Apple to aesthetically differentiate new iPhones from current models. Larger batteries could allow Apple to announce an improvement in battery life or improve device performance while maintaining a similar lifespan. The upgrade facial identity should also constitute a good selling point, as it may be that some potential iPhone buyers are not completely sold for the current implementation of the facial identifier.
The move to a three-camera system should allow Apple to announce a generation-to-generation camera capability that is more meaningful than it has been for generations. In addition, the addition of new cameras could allow Apple to reduce the competitive gap that exists between it and some of its more aggressive competitors (like Huawei), who were already selling triple camera cameras since some time.
And, finally, although I am not exactly sold on the "dual wireless charging" utility, Huawei introduced this feature with its Mate 20 Pro smartphone towards the end of last year. Apple could try to catch up. with Huawei. (This is not surprising if we consider that Huawei has recorded a massive growth in the number of smartphones in China, while Apple's iPhone sales in the region have fallen. )
Take away food
It is difficult to try to fully understand the performance of Apple's iPhone business in the next product cycle, depending on the technical specifications and features of its upcoming devices. It would be difficult even if we had key information such as pricing data. Indeed, even Apple could not correctly predict how would happen the first quarter of fiscal year 2019 – and thus would have been forced to drastically reduce its forecasts.
Nevertheless, it seems that Apple is considering good upgrades with its upcoming iPhone lineup that could enhance the company's competitive positioning in the market (although investors should also be watching closely what the competition also publishes). We should know in about a year if this new range has what it takes to help the Apple iPhone sector to return to growth.
Ashraf Eassa does not hold any of the shares mentioned. The Motley Fool owns shares and recommends Apple. The Motley Fool offers the following options: Long Calls from $ 150 to January 2020 for Apple and short calls from $ 155 to January 2020 on Apple. Motley Fool has a disclosure policy.