The Apple share price slid by 2.65% yesterday ahead of an evening unveiling of the new range of 5G-enabled iPhones the technology giant promised will represent a “new era” for the iconic smartphone series. Chief executive Tim Cook was bullish, talking up the new technology with:
“Every decade, there’s a new generation of technology that provides a step change in what we can do with our iPhones. The next generation is here.”
Apple is keen to encourage iPhone users into upgrades over the upcoming holiday season, hoping to sell over 80 million units of the new models. But while 5G internet speeds may well again up the bar on what we can accomplish with our smartphones over future years, there was a lingering sense of disappointment that there seemed to be no satisfactory answer to the question:
“What can I do with my 5G iPhone that my 4G iPhone does not do?”
The reality seems to be, not much. 5G mobile internet speeds will undoubtedly have a major technological impact over coming years in spaces such as driverless vehicles. But it’s not yet entirely clear what a faster connection will mean for smartphone users. Other than faster connection cutting out some mildly irritating pauses in something happening on an app, and less buffering while streaming.
Faster internet speed will open up new possibilities such as the streaming of cloud-hosted video games. But that will realistically come in future years, rather than be a direct benefit of upgrading to a 5G-enabled iPhone now. And 5G infrastructure is also not yet available in many regions, even in the world’s most developed economies. It will take years before a 5G connection is standard outside of large, economically developed cities.
Its first 5G-enabled series of iPhones is a nice development for Apple, but with little in the way of other significant tech upgrades, there is a feeling the modified design of flattened-edges in the new models is an attempt to spark upgrade interest for want of really compelling reasons.
There had been expectations that alongside the new iPhones range, anticipated new accessories like over-the-ear “Studio AirPods” and lost-items tracking tags would be unveiled. The fact the only new piece of hardware announced was the $99 HomePod Mini, a smaller version of the HomePod speaker that comes with Siri, disappointed and is credited with yesterday’s share price drop.
The new iPhone series consists of the flagship iPhone 12 model with 6.1-inch display, that has a baseline model price of $829 – a $130 hike on the iPhone 11. A new ‘mini’ iPhone 12 with a 5.4-inch screen will sell from $699. There are also two new Pro models, with 6.1-inch and 6.7-inch screens. The latter is a new record for iPhone screen size.
The iPhone 12 Mini and Pro Max models will also be further delayed due to supply line and production issues resulting from the Covid-19 pandemic. They will not be available for pre-order until November 6 and in-store from November 13. That delay also disappointed analysts.
Holiday season sales of the new models will, as always, go a long way towards defining the direction the Apple share price takes over the first half of 2021.