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(CNN) – Apple is finally ready to announce new iPhones, after weeks of pandemic-related delays and outages.
Invitations to an event on October 13 included the phrase “Hello, speed,” hinting at an update long rumored to allow the iPhone to connect to the new 5G wireless network currently being rolled out by carriers in the United States and abroad. (The festivities start at 1 p.m. ET and you can watch them live here and follow them in real time on CNN Business.)
Although still in its infancy, 5G promises to offer much faster connection speeds when fully implemented. Beyond phones, it will pave the way for more connected devices: Advances such as autonomous cars, virtual reality, smart city technologies, and networked robots could be powered by the new network.
Apple is a little late to the 5G phone game. Your new phone will join a growing list of options from Google, Motorola, Samsung, Huawei, LG, and others.
But the iPhone may be able to sustain itself given its loyal fan base, and some analysts expect the iPhone 5G to generate a “super cycle” of device updates, which could lead to more people than usual buying the new device. . And the fact that 5G networks are not yet fully ubiquitous means that there is still room to grow.
Only 13% of smartphones sold in the first half of 2020 had 5G capabilities, and only 6% of customers would rank 5G as a primary factor in their next smartphone purchase, according to Ben Stanton, an analyst at the firm of Canalys research.
“Apple is not too late for 5G, as 5G smartphones have yet to see mass adoption,” Stanton told CNN Business. “Part of the reason for this is that the definitive use case for 5G on mobile devices has not yet emerged.”
Four new iPhones
Apple can offer its users more options than usual with its latest line of smartphones. The company is preparing to launch four new iPhone models on Tuesday, ranging in size from 5.4 inches to 6.7 inches, according to analysts and multiple news reports.
Apple has stuck to a three-model lineup for iPhone launches in recent years, with a base model and two more expensive models with more cameras and better displays. But this time around, a more basic fourth model with a smaller screen (the name “iPhone 12 mini” has popped up in rumors) could help Apple target more price-conscious consumers, although it’s unclear how it would compete with the price-conscious. Low cost. iPhone SE.
“Apple has made a serious effort to make its hardware more price competitive over the past 12 months,” Stanton said. “But Apple’s big challenge is that it needs to find a way to be more price competitive without diluting its premium brand image.”
The higher end of the new iPhone range could also provide a lot of appeal, with its rumored 6.7-inch display that is even bigger than the 6.5-inch iPhone 11 Pro Max.
“In particular, we see that Apple and its Asian suppliers anticipate increased demand for the larger 6.7-inch model, raising overall expectations for the iPhone 12 heading into this possible ‘once in a decade’ launch,” he wrote. Wedbush analyst Dan Ives gave a note to investors last week.
Wedbush estimates that 350 million of the 950 million iPhones worldwide may need an update, which could lead to an “unprecedented” cycle.
The last major “supercycle” of iPhone updates occurred in 2014 with the iPhone 6, said Daniel Morgan, vice president and senior portfolio manager at Synovus. “Since 2014, the latest iPhone launches have felt more like ripples [as] opposite a wave. “
IPhone sales have plummeted in recent years as people wait longer to swap out older models, although Apple made some recovery in 2020 with the iPhone 11.
Eyes on the price
Apple’s pricing strategy for the new iPhone line will likely be one of the biggest talking points. In recent years, the company’s battle with Samsung over premium smartphone users has led to exorbitant prices that would have been unthinkable for previous devices.
Apple’s current high-end model, the iPhone 11 Pro Max, starts at $ 1,099 and the Samsung Galaxy S20 + 5G costs $ 1,199, though Samsung has also released foldable smartphones that cost up to $ 2,000.
Both companies have released lower-cost models of their flagship smartphones in recent months. And other rivals like OnePlus and Google seem to have stopped competing in the fight for the high-end smartphone market.
Apple could use 5G features to justify a slightly higher price for the iPhone 12, but the fact that it is expected to launch four iPhone variants instead of all three could mean a more affordable offering is in the works as well.
One more thing?
When it comes to Apple events, it’s rarely just about phones.
The company has previously used its pre-holiday launch event to roll out updates to its iPads, smartwatches and increasingly popular services like Apple TV +, though it already did much of that at an event last month.
That hasn’t stopped rumors from speculating about updates to other products, including augmented reality glasses, a new HomePod smart speaker, and even over-ear wireless headphones.
Canalys’s Stanton also raised the possibility of Apple announcing “AirTags,” a new product that is rumored to consist of Bluetooth-enabled tiles to help track lost valuables.
“One thing that is certain is that Apple will once again showcase best practices for virtual events and set a standard for the industry to follow,” he added.
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