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The iPhone 12 with its footprints in appearance, 5G connectivity and price … will open a new “super cycle” for Apple.
The phone update cycle only changes iPhone with each new model. Its last “super cycle” was in 2014 when the iPhone 6 was launched, because it sold a record 222.4 million units. The iPhone 6 became the best-selling smartphone of all time for Apple. Analysts predict that this “supercycle” could return this year when Apple launches the iPhone 12 with many drastic changes in design, features and pricing strategy.
Four versions of the iPhone 2020 named iPhone 12 mini, iPhone 12, iPhone 12 Pro, and iPhone 12 Pro Max, respectively, from left to right.
When the iPhone X launched in 2017 with a starting price of $ 999, it became more of a luxury item than an essential device that is updated every few years. Years later, Apple maintained this pricing strategy with little success. This year, Tim Cook can break tradition by selling the cheap iPhone 12, starting at $ 699. The new strategy is expected to push millions of customers to give up their old smartphones for the iPhone 12.
Apple could launch four different iPhone 12 models to cater to users, from the need to buy a basic smartphone to a good camera model, high battery capacity or the most expensive mobile device on the market. .
The cheapest version of the iPhone 12 is expected to start at $ 699, much less than it started at $ 999 in 2017. High-end models are priced between $ 999 and $ 1,099. Some even call iPhone 12 products “good, better, a little better, and better.” The cheapest model could be the iPhone 12 mini with a dual camera, without some important features, like the telephoto lens, a LIDAR sensor.
According to calculations by financial and investment services company Wedbush Securities, there are about 350 million iPhones over 3 years old in the world, which is equivalent to 40% of global iPhone users. Therefore, iPhone 12 will be an attractive product for those who need to update their smartphone.
“The iPhone 12 will be Apple’s most important cycle since the iPhone 6 launch,” said Dan Ives, an analyst at Wedbush. The core of Apple’s growth has always been built on major iPhone updates, he said.
Aside from the price, another key factor of the “super cycle” that is returning is 5G connectivity. This is also the reason why the production price of the iPhone 12 is significantly more expensive than its predecessor. This contradicts the strategy of reducing product prices, forcing Apple to find ways to lower production costs.
“Apple must commit to reducing the price of the iPhone 12 to an acceptable level. This is directly related to the hardware such as the processor and the camera,” said Paolo Pescatore, analyst at PP Foresight. , packaging and accessories “.
The fall in the price of the iPhone also means that Apple’s hardware revenue will drop significantly. The company can make up for this shortage through an ever-expanding range of services. In the latest quarter, its service revenue increased 15% to $ 13 billion. However, analysts say that lowering iPhone prices to stimulate growth in the services segment is not Apple’s priority.
This year, the price of the iPhone is more important than ever since Covid-19 seriously affects the economy of users. The delay in the iPhone release date also causes many potential customers to reconsider upgrading to new iPhones.
“Apple knows its prices have peaked in the smartphone industry, and when the financial situation is generally tough, discounting is a reasonable option,” said IDC analyst Ryan Reith.
Some analysts believe that the impact of the pandemic has been exaggerated. “There will be a lot of people willing to buy a premium iPhone in the coming weeks,” said Ben Wood, research director for CCS Insight.
Whatever happens, the “Hi Speed” event at 0:00 tonight (October 14, Hanoi time) will continue to be an important milestone for Tim Cook after 9 years at the helm of Apple.
Khuong nha (follow Telegraph)
