Apple’s forthcoming autumn product unveiling is poised to feature two significant milestones: the introduction of its inaugural foldable smartphone and the inaugural presentation by newly appointed CEO John Ternus, who assumed the position on September 1, succeeding the long-reigning Tim Cook.
The event, aptly designated “Surprise and Shine,” is scheduled to commence at 1 p.m. ET on September 9 at Apple’s Cupertino, California, headquarters.
This annual ceremony serves as a platform for the technology titan to showcase its latest devices, which are expected to become available to consumers shortly thereafter, typically within days.
Will Apple Rise to the AI Challenge?
Apple faces substantial stakes at this year’s gathering. Sales of its signature iPhone have exhibited a marked deceleration, as approximately 158 million units are already in the hands of American consumers, representing over half of the adult population.
The challenge of persuading these users to upgrade to more expensive models is exacerbated by an ongoing affordability crisis, as families grapple with escalating prices for essential commodities, ranging from fuel to food.
The company must also demonstrate to Wall Street its advancements in artificial intelligence. Per Melissa Otto, head of research at S&P Global Visible Alpha, Apple is perceived as trailing behind competitors like Alphabet in this arena, leaving investors questioning the company’s trajectory under Ternus’s leadership.
“The market has been disenchanted by Apple’s seemingly tepid involvement in the AI craze, leaving us pondering their future direction and how Ternus will orchestrate this evolution,” Otto remarked.
Wednesday’s event presents a vital opportunity for Apple to distinguish itself. “What advantages does their foldable phone offer? Why should consumers invest?” she inquired.
While Apple was not immediately available for comment, analysts anticipate the introduction of the iPhone 18, featuring enhanced capabilities for Siri, alongside updates for the AirPods and the Apple Watch.
A New Chapter in Folding Technology
The spotlight is likely to fall on Apple’s groundbreaking foldable device, potentially named the iPhone Ultra, as reported by MacRumors.
“We believe the foldable phone could resonate well with consumers. This is an opportune moment for Apple to embark on a new era under Ternus’s guidance,” asserted Dan Ives, partner and analyst at Yorkville Ives & Co. “This initiative is long overdue, presenting the right occasion to engage their vast existing consumer base.”
Although foldable phones have yet to gain widespread traction in the U.S., they have garnered popularity in Asian markets, where brands like Huawei and Samsung have pioneered such devices over the years.
These foldables typically provide larger screens, appealing to users who relish streaming media on their smartphones, Otto.
Moreover, according to the tech consulting firm IDC, foldable devices hold the distinction of being the sole smartphone segment anticipated to see growth by 2026. IDC predicts that Apple’s entry into this category could drive foldable sales up by 13% this year, totaling approximately 22.9 million units.
Conversely, the broader smartphone industry is encountering notable challenges, with IDC forecasting a substantial decline of 16.7% in total smartphone shipments this year.
This downturn is attributed to rising prices exacerbated by memory chip shortages, compelling budget-conscious consumers to forgo upgrades, according to IDC.
Although Apple has yet to disclose pricing for its new devices, industry experts predict that the foldable phone will command a higher price point than conventional iPhones.
Reports from Bloomberg indicate that the anticipated price for this foldable device could be around $2,000.
In contrast, Apple’s current flagship model, the Pro Max 17, is available starting at approximately $1,200.
Stepping into Big Shoes
Investors will closely scrutinize Tim Cook’s initial performance as CEO, analysts suggest. Under Cook’s 15-year stewardship, Apple’s revenue skyrocketed to over $416 billion annually, while its market valuation soared past $4.7 trillion, establishing it as one of the globe’s most valuable publicly traded entities.
Ternus, a member of Apple’s product design team since 2001, has devoted much of his career to the company’s hardware division, contributing to the launch of innovative products such as the iPad and AirPods.
Apple has noted his role in pioneering advancements in materials, including the formulation of a novel recycled aluminum composite.
“He is a hardware engineer deeply entrenched in the intricacies of product production,” remarked Patrick McGee, a CBS News contributor and author of “Apple in China,” slated for release in 2025, which explores the company’s dependency on Chinese manufacturing.
McGee conveyed concern, “I worry that Ternus may focus more on the less glamorous aspects of product development, such as enhancing durability and resilience, whereas many Apple enthusiasts yearn for the revival of a product visionary who can reinject excitement into the brand.”
Source link: Cbsnews.com.
