tech

Apple may spark upgrade rush with new iPhones, tight pricing

10 Comments

Apple Inc could sell as many as 200 million of its latest iPhones from existing users upgrading their older devices and much of that demand will come from China despite an ongoing trade war, several Wall Street analysts said on Monday.

The Cupertino, California-based company is widely expected to launch three new iPhones on Tuesday, featuring upgraded processors and new camera functionality, along with a video streaming service that will take on the likes of Netflix Inc and Walt Disney.

The upgrade cycle could translate into roughly 180 million iPhone units sold in the next 12 months with roughly 60 million to 70 million consumers due for an upgrade in China, where Apple struggled with its last launch, Wedbush analysts said.

Apple currently has about 900 million active iPhones globally and the combination of slack sales for its iPhone X launches since 2017 and relatively tight control of pricing may spur demand from users who have been holding out previously, several analysts said.

"These old phones would be candidates for upgrade and we continue to look at fiscal 2020 as a 'Trade-in' iPhone cycle versus 2021 which should be a 5G-driven cycle," Bank of America analysts said.

They estimated there were 200 million iPhone 6 and earlier models which were primed for upgrading.

Apple's 2020 fiscal year starts from October and none of the brokerages expected it to launch a 5G-enabled iPhone this time round - in contrast to recent 5G mobile launches by Samsung Electronics and China's OnePlus.

Analysts and other industry watchers expect Apple to launch three smartphones: a 5.8-inch iPhone 11 Pro, 6.5-inch 11 Pro Max and a low-priced 6.1-inch 11R.

The base model is expected to be priced at $749, the iPhone 11 Pro at $999 and iPhone Pro Max at $1,099, roughly unchanged from last year's prices, with the company opting to push through any potential tariffs on the devices in favor of boosting sales volumes.

Apple faces levies of 15% imposed by the U.S. government on products made in China including smartwatches and wireless headphones as of Sept. 1, with a tariff on the iPhone to take effect on Dec. 15.

Apple has seen bumps in demand in China this year, driven by Chinese online retailers discounting iPhones.

"Apple saw meaningful elasticity of demand in China when it lowered the price of iPhone XR, and we expect Apple to potentially lower pricing of some models," the Bank of America analysts said.

© (c) Copyright Thomson Reuters 2019.

©2019 GPlusMedia Inc.

10 Comments
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The era of Apple being "THE" premier and most sought after brand is slowly coming to an end, similar to how Sony was back in the 80s, 90s, and early 00s. Apple, won't just up and disappear, of course, and it'll keep its luxurious reputation and sales, just like Sony. It does remain to be seen, however, which brand will follow that path. Will it be American? South Korean? Japanese? Chinese, even? Interesting times.

-2 ( +2 / -4 )

Next year's phone is going to be worth waiting for, if your phone still works just keep it, maybe do a battery swap.

2 ( +2 / -0 )

Still two years until Apple gets its first 5G phone?

Foldable phone? Not on the horizon.

I remember when they were leaders. Now it's just catch up.

0 ( +2 / -2 )

happyhereToday  11:01 am JST

Still two years until Apple gets its first 5G phone?

Foldable phone? Not on the horizon.

I remember when they were leaders. Now it's just catch up.

Catch up with what? Foldable phones are far too expensive, even for people who could afford one, since they offer no advantage over a more portable smaller traditional smartphone, and a larger tablet. You're not a leader if you design a device that is out of reach and impractical for most people. You're a novelty provider.

And 5G capable phones are the same as the ubiquitous 4K TVs that everyone has, but TV broadcasts are rarely at that resolution. 5G capability is literally 'future-proofing' a device for something that is superfluous to the everyday user's needs, with far poorer initial coverage area that may not get addressed for quite a while thereafter. 4G is still very capable and will be for a long time yet. Sure 5G will have proper applications with connected vehicles and gaming etc, but for phones? Maybe in a few years time... and Apple will address it in due time.

1 ( +2 / -1 )

Tawkeeo

The era of Apple being "THE" premier and most sought after brand is slowly coming to an end, 

Really? Who is the premium brand now then? Samesung? Don't make me laugh. They've been trying and failing to design their own chips and OS for years. They can't do it. If you want a the fastest phone with a best OS, you buy Apple.

happyhere

Still two years until Apple gets its first 5G phone?

Probably next year actually, but who cares if the network isn't there.

Foldable phone? Not on the horizon.

I hope never. Apple doesn't do gimmicks.

I remember when they were leaders.

They still are.

0 ( +1 / -1 )

@2020hindsights

I'm sick and tired of hearing the same, ignorant, "iOS is the best mobile OS" statement. It feels so late 2000s. Android now, is on par with iOS and works just as fast, has just as good of an app selection (with very few exceptions like movie editors which Apple is king with iMovie), is almost as good design wise, doesn't lag like crazy after a year of use anymore, etc etc. I never mentioned a thing about Samsung, as I'm not a fan of them myself, but acting like South Koreans and Japanese don't have the expertise to make something that is WAY better than Apple is... ignorant... They've lost their innovative edge since Jobs passed away. Oh, and don't get me started on their way overpriced smart watches, or their laughably horrible Beats headphones. I used to love Apple, it was one of the two companies I adored, the other being Sony which I still adore, but their direction has clearly changed since Jobs died. They're no longer a fashionable, high end brand, they're a "let's see how much money we can get our customers to pay for our new products". The infamous 1000$ stand is an example of that. I have absolutely NOTHING against paying a premium for a premium brand and product, but there's a difference between paying a premium, and paying for a way overpriced product. Their saving grace is macOS, but that's because Windows 10 is an OS made by elementary schoolers. Why you think they're going all crazy about Apple Music, TV, and even Arcade?

-2 ( +0 / -2 )

Tawkeeo

I'm sick and tired of hearing the same, ignorant, "iOS is the best mobile OS" statement.

As a developer, who develops for both iOS and Android, I beg to differ. Apple have the advantage here though, because they control both the hardware and the OS.

I never mentioned a thing about Samsung, as I'm not a fan of them myself, but acting like South Koreans and Japanese don't have the expertise to make something that is WAY better than Apple is... ignorant... 

It's not a judgement on South Koreans; it's a judgement on Samsung. Samsung have been trying for years to design their own chips (Exynos) to move away from Snapdragon (Qualcomm) and failed. Likewise they have been developing Tizen to move away from Android and failed there too.

1 ( +1 / -0 )

Anyone else notice that their current iPhone is losing power so quickly since the latest "update?"

0 ( +1 / -1 )

yes come to think of it, it is discharging faster after the last update

-1 ( +0 / -1 )

Everyone bemoaing the lack of 5G in the new iPhones should be made aware of the saying

"early bird catches the worm, but the second mouse gets the cheese"

Apple are not fools and they have the technology and the means to put this in to their phones now, however i suspect what they are doing, is watching and waiting while their rivals end up with the bugs and problems that always accompany early tech rollouts. By seeing where others fail they can, in a few years, come in with proven equipment devoid of the most of the teething problems expierienced earlier on.

Apple prides itself on quality, and while in the past they have been bold and broken new ground, they have not always got it right. It seems that people have forgotten that for the most part of its early life Apple made almpst no money and tried to do too much but at the wrong time. Yes it innovates now but the first iPhone lacked 3G remember when it was launched but made billions regardless. Then a few years later when 4G came out, its iPhones took a while to catch up, but low and behold they still sold billions of dollars worth of them. To the die hard Apple fans and those tied in to the tech they offer, this wont matter a hoot, also with 5G rollouts sparadic at best and most tarrifs far to expensive to make it attractive to everyone i dont think Apple execs will loose to much sleep over it!

2 ( +2 / -0 )

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