Apple Inc. introduced the iPhone 13 and a new iPad mini on Tuesday, expanding 5G connectivity and showcasing faster chips and sharper cameras.
Although the Cupertino, California-based company did not announce any major features or products, analysts expect customers clinging to older models, such as the iPhone X, to be eager to upgrade.
The iPhone 13 will have a new chip called A15 Bionic that will boost functions such as automatic detection of when the phone’s camera points to text. Apple said the iPhone 13 will have antennas and custom 5G radio components for faster speeds and will come in five colors.
The phone will start at $ 699, and participating wireless carriers will offer up to $ 700 off for qualifying trade-ins. The iPhone 13 Pro starts at $ 999 and the Pro Max at $ 1,099, with trade-in offers of up to $ 1,000. All three models will be available on September 24.
“The competition is still playing catch-up with our chips, not just from last year, but even two years ago,” said Kaiann Drance, an Apple iPhone marketing executive.
The Series 7 smartwatch will have a larger screen and faster charging. It will start at $ 399 and will be available in late fall.
The company also updated its iPad Mini with 5G connectivity and a revamped design that resembles the higher-end iPad Air and Pro models. Apple has also updated its base iPad model with a new camera for working and learning from home. The base iPad model starts at $ 329, and the Mini at $ 499. Both will be available next week.
Apple shares fell 0.5%, in line with a slight decline in the broader markets.
“It seems like there’s nothing really groundbreaking announced, but of course, as always, they announced enough enhancements to at least generate some buzz among consumers,” said Rick Meckler, partner at Cherry Lane Investments family investment office.
Apple last year introduced its iPhone 12, which featured a new look and its first devices with 5G connectivity. This year, analysts are expecting modest hardware upgrades and a deeper focus on 5G.
In particular, carriers like AT&T Inc, Verizon Communications and T-Mobile, which have significantly built their networks since the beginning of this year, are likely to offer new incentives around devices that can take advantage of faster speeds than those networks. they can deliver, said Ben Bajarin, head of consumer technology at Creative Strategies.
“It seems like there is a lot more (5G network capacity) than there was even six months ago,” Bajarin said. They want people to update themselves. They are going to be really aggressive.
Apple’s biggest product launch of the year comes as some of the glitter has been shed from its stock as business practices, such as charging software developers fees on in-app payments, have come under scrutiny. regulatory.
Shares of Apple are up 15.6% so far this year, behind the Nasdaq Composite Index, which has risen nearly 19% in the same period.
Kim Forrest, founder and chief investment officer at Bokeh Capital, said she was not concerned about the lack of gorgeous and unexpected products, as Apple updates would keep customers going. “I think that the consumer, once the Apple chip gets into his head, it is very difficult to dislodge,” he said.
The Apple Watch has become the cornerstone of its $ 30.6 billion accessory segment, which was up 25% in Apple’s last fiscal year, even as its iPhone revenue declined slightly. Analysts generally believe that Apple users who buy more than one product – such as an Apple Watch and an iPhone – are more likely to stick with the brand and spend on the company’s apps and services.
Apple has focused on fitness features such as improved bike workout tracking and dust protection on excursions. The watch is closely tied to Apple Fitness +, a paid service that offers Apple instructor-led workouts. The company has added Pilates and ski workouts, as well as a group training feature designed for users to exercise together. The company has also included three months of free service with its watches.
Shares of exercise bike and online training company Peloton fell 1.6%.
“It’s the only service they offer where you literally have to have this product or you can’t use this service,” Bajarin said.
(Information from Stephen Nellis in San Francisco; additional information from Caroline Valetkevitch in New York; edited by Lisa Shumaker) .. Translate serenitymarkets