Apple Inc. finally unveiled its new iPhone 7 and an addition to their Apple Watch series in their annual launch event last Wednesday. It is equipped with various technology advancements no one has thought of before. Although the biggest iPhone’s technical improvements have been previously leaked, even from Apple’s twitter account itself (which they deleted after a while), before Chief Executive Tim Cook even spoke on the launch, some specs still came as a surprise.
The new iPhone 7 and iPhone 7 Plus everyone is talking about comes in five different colors, including the new Jet Black. Storages vary from 32GB, 128GB to 256GB and screens are 4.7 and 5.5 inch Retina HD display screen capable of multi-touch. Both phones are rated IP67 splash, water and dust resistant, comes with A10 Fushion chip in 64-bit architecture. The most impressive change in these phones yet is their cameras. iPhone 7 has one high-resolution 12mp camera while iPhone 7 Plus has that and another telephoto lens right next to it. Prices range from $649 to $769.
Mentioned above might be very impressive specs, but the new smartphone has one downside: its missing analog headphone jack from both new models. The new headphones provided by Apple with the phone would plug into the same port as the recharging cord, which made it incompatible with most wired headphones without an adaptor, which Apple kindly included. Analysts are expecting that this would disappoint or even annoy consumers for a while, but they would get over it. Apple’s customer loyalty didn’t reach over 83% for no reason.
Consumers need not to worry, because Apple also introduced AirPod, a wireless ear piece that could be bought separately for $159 in late October. Some consumers’ main worry about this is that it could easily get lost, seeing as it’s almost as small as a ballpoint pen cap.
Apple said that dropping the jack was an act of courage as it moved towards a wireless future. Getting rid of the jack also increased room for stereo speakers.
Apple Watch Series 2
Apple also introduced smartwatches at the launch. It came with a feature for Pokemon Go app, in more stylish straps and swim-proof casing, emphasizing its purpose aimed squarely at the health and athletic audience. It even has an internal GPS system designed for runners who want to track workouts without dragging along their phones. According to analysts, the focus on fitness will enhance the watch’s appeal to its core audience but also cement its status as a niche device.
Apple has not broken out Watch sales, but Wall Street analysts suspect it is a small and growing contributor. Stanford Bernstain analyst Toni Sacconaghi estimates the watch will generate $4.1 billion in revenue for Apple this year, up from $2.7 billion in 2015.
iPhone’s Super Mario Surprise
During the Apple’s product launch, they also surprised everyone with an exclusive Super Mario game called Super Mario Run. Investors are betting that this new game will be another mobile hit for the Japanese company like the Pokemon Go, as it moves away from its console-focused strategy and embraces on-the-go gaming.
Shigeru Miyamoto, the original creator of the Mario character demonstrated the game at the event. S Nintendo spokesman confirmed that Miyamoto himself led the game’s development, with mobile specialist DeNa Co. which is responsible for the back-end operations such as servers.
Shares of Nintendo Co. surged as much as 18% on Thursday because of this. It ended in the morning session up 13.2% at their highest since late July, adding $6 billion to the company’s market value.
By teaming up with these companies, Apple have helped raise their share prices. Nintendo shares jumped 18%, while DeNa Co.’s shares also jumped 12%. Smartwatch maker Fitbit Inc’s shares even closed down 2% on the emergence of such a high-profile competitor. But why do Apple’s shares hasn’t spiked yet?
Some consumers are saying that they would wait for iPhone 8, since it would be launched on Apple’s anniversary next year, thus it is sure that they are planning something bigger than iPhone 7. Also, net sales across the company have been less than stellar this year. For the first three quarters of FY16 that total is $168.7 billion, down 7.4% from FY15’s $182.2 billion for the same period. The number for iPhone itself, which is 65% of Apple’s total sales during the last fiscal year, has been even more disappointing. Sales decreased 12% over the same period, from $122.8 billion to $108.5 billion.
These disappointing numbers are obviously weighing down on anything Apple does, even if they are smartphones and smartwatches with impressive specs. Growth prospects haven’t panned out, and investors are now unsure of the company’s true value.
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