Apple is expected to unveil iPhone 14 models and a new range of Apple Watches on Wednesday that will test how willing consumers are to upgrade gadgets amid rising inflation and an economic downturn.
Analysts expect Apple to announce that the latest iPhones can send emergency messages using satellites at an event titled “Far Out” at its Cupertino, California, headquarters. Beyond that, analysts expect a family of iPhone 14 models with additional upgrades — slightly better cameras, processor chips and, for Apple’s bottom line, prices $100 or more over last year’s models. will be Read more
To be sure, the world’s most valuable listed company will likely keep some older or less modern models at lower prices, and to this day Apple’s relatively affluent fans continue to spend despite high inflation. but has shown more willingness. But the new models will be Apple’s sales anchor during a turbulent holiday shopping season in Western markets. “Apple is not immune to economic weakness,” Bernstein analyst Tony Sacconaghi wrote in a note to clients.
This year’s iPhones may have the ability to send emergency messages via a satellite Internet connection when Wi-Fi and mobile networks are unavailable. Messaging functions will likely be the first, and other companies are working on similar functions. SpaceX founder Elon Musk said last month that T-Mobile would use its satellites to connect phones directly to the Internet.
Bob O’Donnell of TECHnalysis Research said the peace of mind of being able to send emergency messages could encourage Apple users to upgrade their phones for the satellite feature.
“Even though it’s not something you do every day, it will change the way you look at what you do with your phone,” he said.
Analysts also expect Apple to show off a new range of Apple Watches, including an upgraded budget model called the SE and the Series 8 Watch. They also expect a new high-end watch called the Apple Watch Pro, which will likely include new features for athletes, aimed at taking on rivals like Garmin.
But while accessories like the Apple Watch have driven growing sales from Apple’s existing user base, the iPhone has remained the backbone of its business, accounting for 52.4 percent of sales in its most recent fiscal year. Investors have been eyeing Apple’s next big product category since the launch of the Apple Watch in 2015.
Some analysts believe Apple could preview that future by showing off a mixed-reality headset on Wednesday. The device is expected to have cameras that overlay digital objects onto the physical world, offering the wearer a view of the outside world. Analysts don’t expect the device to go on sale until next year at the earliest.
An early preview would be rare for Apple, which keeps its product plans secret until before devices hit the market. A rival headset called Project Cambria is operating from MetaPlatforms, which is pouring billions of dollars into the project.
But to have great apps for the new headset, Apple may need to give developers time to get used to it. “It’s going to take a lot of time for people to develop a new and radically different kind of platform,” O’Donnell said.
