Current Tough Economic Conditions For Consumers Not Right Time For Apple’s New iPhones And Watches

The new lineup of iPhone 14 models and Apple Watches that Apple Inc. is expected to introduce on Wednesday will test how willing consumers are to upgrade technology in the face of inflation and economic doom.

At an event dubbed “Far Out” at its Cupertino, California, headquarters, analysts anticipate Apple to reveal that the most recent iPhones can send emergency messages via satellites. Analysts anticipate a family of iPhone 14 models with minor improvements, such as marginally better cameras, processor chips, and prices that are at least $100 more expensive than those of last year’s models.

Undoubtedly, the most valuable listed company in the world will continue to sell some older or less sophisticated models at lower prices, but up to this point, Apple’s relatively well-off fan base has demonstrated a greater willingness to continue spending despite high inflation. However, during a difficult time, the new models will serve as Apple’s main source of sales during the Western markets’ holiday shopping seasons. According to Bernstein analyst Toni Sacconaghi’s note to clients, “Apple is not immune to economic weakness.”

When WiFi and mobile networks are unavailable, this year’s iPhones might be able to send emergency messages over a satellite internet connection.

The messaging features would probably be basic, but other businesses are working on features that are similar. Elon Musk, the founder of SpaceX, announced last month that T-Mobile would use its satellites to directly connect phones to the internet.

The assurance that comes with being able to send emergency messages, according to Bob O’Donnell of TECHnalysis Research, may persuade Apple users to upgrade their phones for the satellite feature.

“Even though it’s not something you do every day, it’ll change your perspective on what you do with your phone,” he said.

Analysts anticipate Apple to unveil a new line of watches, including the Series 8 Watch and an improved SE budget model. They also anticipate the release of a brand-new, high-end watch called the Apple Watch Pro, which is expected to target rivals like Garmin Ltd. with new features for athletes.

Although accessories like the Apple Watch have increased sales from Apple’s current customer base, the iPhone continues to be the company’s main revenue generator, accounting for 52.4 per cent of all sales in its most recent fiscal year. Since the release of the Apple Watch in 2015, investors have been keeping an eye out for Apple’s next significant product category.

According to some analysts, Apple may demonstrate a mixed-reality headset on Wednesday, providing a glimpse into the near future. The gadget is anticipated to have cameras that give the wearer a view of the outside world while superimposing digital objects on the real world. Analysts predict that the device won’t go on sale until at least the following year.

An early preview would be unusual for Apple, which usually waits to reveal its product plans until right before its products are released. Meta Platforms Inc. is developing a competing headset called Project Cambria and investing billions of dollars in it.

Apple may need to give developers time to get accustomed to the new platform, though, in order to have compelling apps for a new headset.

“Developing for a new and radically different type of platform is going to take people a lot longer,” O’Donnell said.

(Adapted from BBC.com)

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