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Apple unveiled four new iPhone models and two updated Watches in Cupertino on Tuesday, aiming to attract consumers in an era when device usage is longer-lasting.
Pricing for the new iPhone 15 Pro Max models will start at $1,199, $100 higher compared to last year, as Apple seeks to compensate for stagnant unit sales with higher average selling prices.
The Pro and Pro Max models are the world’s first smartphones using 3 nanometre chips manufactured by TSMC. Apple emphasized a “groundbreaking” GPU for enhanced graphics processing. These models contain three cameras and support “spatial videos,” an exclusive format to be viewed through the Vision Pro headset, which will be available for purchase next year.
All four models now feature a universal USB-C charging port, complying with demands from EU regulators.
Apple’s iPhone product line spans from the entry-level iPhone SE, priced at $429, to the Pro Max model, priced at $1,199. Although annual updates are more incremental compared to a decade ago, Apple’s focus on high-end models has raised average selling prices from $627 in 2015 to $890 this year, based on Counterpoint Research.
“There is an iPhone for everyone, catering to different habits with various trade-in and recycling programs,” said Paolo Pescatore, analyst at PP Foresight. “Significant improvements in camera optical zoom will help Apple directly compete with rivals like Samsung, enticing users to switch to iPhone.”
The standard iPhone 15 and larger-screen iPhone 15 Plus feature improved cameras with a 48-megapixel main camera. Both models retain the same price points as last year, starting at $799 and $899, respectively.
The new Apple Watch Series 9 introduces a new gesture recognition called “double tap,” allowing users to answer calls and pause music with a tap of the index finger and thumb. Priced at $399, this watch is Apple’s first carbon-neutral product. The Ultra 2, a second-generation watch designed for athletes, will start at $799.
Throughout the event, Apple highlighted its environmental commitment, announcing the discontinuation of leather in all its accessories. It introduced “FineWoven,” a custom material for watch bands and iPhone cases with a significantly lower carbon footprint.
The event took place during a challenging period for Apple. While it remains the world’s most valuable company, its revenues have declined for the past three quarters. Although its global market share for iPhones is slowly increasing, overall smartphone sales are in decline.
The upcoming quarter is crucial for Apple, encompassing the holiday shopping season. Additionally, its biggest competitor in China, Huawei, recently launched a flagship phone that poses a threat to Apple’s market share. The company is also dealing with reports of Beijing advising state employees not to use Apple phones.
Apple’s stock fell more than 5% in the five days leading up to the event, as investors expressed concerns over potential Chinese issues impacting demand and production. After the event, the stock was down 2%, reflecting the incremental nature of the updates and absence of surprises, before closing down 1.7%.
Globally, Apple has steadily gained market share from Android, and this year it is projected to capture a record 20% of all smartphone shipments, up from 15% a decade ago, according to Counterpoint Research.
Jay Goldberg, a chips consultant and founder of D2D Advisory, stated that “the story of the year” for Apple is its increasing market share in India and other emerging markets, where iPhone penetration is currently in the single digits but has the potential to grow.
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