Every September for the past decade, Apple has gathered media from all over the world for a marketing event that celebrates the innovative achievements behind its latest iPhone. It has emphasized the phone’s exterior shine, camera design, and processor power.
However, this year, Apple’s esteemed designers and engineers have adapted their creative process and marketing extravaganza to comply with the design requirements of European regulators, who have implemented a rule that mandates USB-C charging for electronic devices.
On Tuesday, Apple announced that its latest product line, the iPhone 15, will abandon their proprietary Lightning port in favor of European-mandated USB-C ports. The new iPhones showcase a charging plug that is slightly larger and rounder than its predecessor, but capable of delivering a faster charge.
The aim of the rule was to reduce electronic waste and save customers money by standardizing one port across multiple devices. Although Apple resisted the change, cautioning that governmental mandates could hinder innovation, it will now be possible to use the same USB-C cord that powers a Mac to charge an iPhone.
Alongside the iPhone, Apple introduced its wireless earbuds, the AirPods Pro, which come with a USB-C charging case.
This change indicates how regulators are influencing Apple’s business. Apple has positioned itself as the main gatekeeper for over a billion iPhone users worldwide by creating proprietary hardware and services. In order to reach those customers, app developers have had to pay Apple up to a 30 percent commission on their sales, and accessory companies have had to pay fees to produce cords with Lightning ports.
However, due to mounting concerns about the power of tech companies in the global economy, governments have begun implementing rules and issuing warnings that are pushing Apple towards greater openness. In Europe, a new antitrust law will require Apple to allow the sale of iPhone apps outside of its App Store. In the United States, regulators are investigating Apple’s practice of blocking others from utilizing the iPhone’s tap-to-pay feature. Additionally, there is currently a government crackdown in China on employees using iPhones at work.
These government challenges are impacting Apple at a time when the company is attempting to revitalize its business. Declining sales of iPads and Macs have led to their longest slump since 2016. iPhone purchases, which account for over half of total revenue, are slowing down. Moreover, the sale of apps and services could be affected by government regulations.
“Apple is facing the consequences of its own success, and everyone is targeting the big players in tech,” said Mike Frazier, president of Bedell Frazier Investment Counselling, an investment firm in Walnut Creek, California.
In addition to the USB-C port, Apple highlighted other improvements in the iPhone 15, such as enhanced cameras and reduced screen borders. The two high-end Pro models, starting at $999, feature a lighter titanium body and processors manufactured using an advanced process that significantly boosts performance. The mute switch on previous models has been replaced with a new button that can be pressed to activate the phone’s camera or start an audio recording.
The high-end phones also have the capability to record three-dimensional video, which can be viewed using the augmented reality headset that Apple plans to release next year.
Apple has raised the price of the iPhone Pro Max, their top model, by 9 percent to $1,199. This larger phone features the most advanced camera in the lineup, with a fivefold optical zoom, contributing to the first price increase for the iPhone lineup in five years.
The base models of the iPhone 15, priced at $799 and $899, incorporate many of the features found in last year’s iPhone Pro models, including the previous year’s processor and the Dynamic Island, a toolbar at the top of the screen. Wireless charging is available across the entire iPhone lineup.
“This is underwhelming,” said Gene Munster, managing partner at Deepwater Asset Management, an investment and research firm based in Minneapolis. “However, for the average person with a three- to four-year-old phone, this is enough reason to consider an upgrade.”
Apple also announced updates to its Apple Watch lineup. The Series 9, equipped with an updated processor and new software features, allows wearers to answer phone calls by tapping their thumb and index finger together twice. The company presented the watch as its first carbon-neutral product, emphasizing that it is made using 100 percent clean energy, carbon offsets, and smaller packaging to reduce emissions associated with shipping.
The Apple Watch Ultra, designed for outdoor enthusiasts, offers a brighter screen and a wider altitude range. It also provides new capabilities for cyclists to connect with other devices that measure performance.
Apple unveiled these products at the Steve Jobs Theater in Cupertino, California, on its campus. The event was attended by journalists and employees, with millions more tuning in online to watch Apple’s infomercial for its new products.
During the iPhone event, Tim Cook, Apple’s CEO, took the opportunity to remind customers about the upcoming release of their augmented reality headset, which was initially announced in June.
However, even after the release of the headset, the iPhone will continue to be the driving force behind Apple’s business. The company sells over 200 million iPhones annually, generating approximately $200 billion in revenue.
While sales of the iPhone have slightly declined this year, Apple has expanded its dominance in the smartphone market, capturing a larger share of total smartphones sold worldwide. In the United States, the iPhone now accounts for over 50 percent of smartphones sold, up from 41 percent in 2018, according to Counterpoint Research, a technology firm.
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