Apple's iPhone Event: What You Need to Know
September 11 2017 - 5:59AM
Dow Jones News
By Tripp Mickle
Apple Inc. on Tuesday will hold its most important product event
in years, unveiling the newest iPhones, Apple Watch and Apple TV at
its new headquarters in Cupertino, Calif. Investors and consumers
around the world will tune in to see the latest features. Here's
what you need to know:
Apple does this every September, so what's the big deal?
This event offers up several firsts. On the product side, it
marks the first time Apple will unveil three iPhones at its fall
showcase. One will be a high-end model with new display and sensors
that will be called the iPhone X, according to reports on a recent
Apple software leak. The other two will be upgrades to last year's
iPhone 7 and iPhone 7 Plus. Apple declined to comment for this
article.
It also will be the inaugural event at Apple's new, $5 billion
campus. The event will take place at the Steve Jobs Theater, a
1,000-seat auditorium inside a cylindrical, glass building. The
theater is situated on a hill overlooking the company's new
headquarters, designed to resemble a spaceship.
What's the deal with the three new iPhones?
Most of the focus will be on the high-end iPhone. Though Apple
has guarded its plans with its usual secrecy ahead of the
announcement, analysts have a good sense of what features will be
included. The phone is expected to be Apple's first with an organic
light-emitting diode, OLED, display, which will be larger, at 5.8
inches, and sharper than previous, LCD displays. Apple ditched the
home button in the phone, which is expected to be unlocked through
facial-recognition technology. The phone is expected to offer
wireless charging and 3D sensors that enhance the performance of
forthcoming augmented-reality apps.
The upgraded iPhone 7 and iPhone 7 Plus are expected to have
longer battery life and faster processors.
How much will the high-end iPhone cost?
The new iPhone is expected to cost about $1,000, making it about
50% more expensive than the cheapest version of the iPhone 7
introduced last year. The price reflects an estimated 80% increase
in the component costs for the device. The new display costs more
than double the price of the LCD display Apple has used in the
past, according to analysts. Add a new 3D sensor, a pricier battery
and greater memory, and analysts say the phone more than justifies
a much higher price tag.
What will investors be scrutinizing?
Few other big companies' fortunes are as tied to a single
product line as Apple's are to the iPhone, which accounted for
two-thirds of its $215.64 billion in sales last fiscal year. In
addition to gauging whether new features will be attractive enough
to drive sales, investors will be watching price, dates and
availability of the new iPhone. If it is priced around $1,000, it
could lift the average-selling price of iPhones and boost Apple
revenue -- if enough consumers buy it.
Investors will be looking for Apple to announce that the new
iPhone will be available Sept. 22. They also will be eyeing total
number of markets where it will be sold, hoping that sheds some
light on iPhone supplies. The phone ran into production issues over
the summer that raised concerns about a shortfall. Delaying the
date or limiting the number of markets where it is available could
signal production issues, says Sanford Bernstein analyst Toni
Sacconaghi. Apple offered the iPhone 7 in 29 markets and its
predecessor, the iPhone 6s, in 12 markets.
What about other products?
The Apple Watch is due for a big upgrade. Apple is planning to
introduce one this year capable of connecting to cellular networks,
potentially enabling it to get messages and other data independent
of the iPhone. The LTE capabilities in the device would be a step
forward in its evolution, and Apple's effort to free it from its
dependency on the iPhone.
The Apple TV is also set for an update. The company is expected
to announce a new streaming-media player with 4K capabilities that
allows it to offer significantly sharper video than its previous
models. Apple has been scrambling to strike deals with Hollywood
studios so it can offer ultra-high definition films on the new
player.
Will there be any surprises?
Apple always plans some sort of surprise. Last year, it was the
announcement that Nintendo Co. would create its first game for the
iPhone, "Super Mario Run." Some guesses for this year include an
announcement of a TV show or app from its new content team in Los
Angeles, a demonstration of the new HomePod with new functions for
Siri, or a demonstration of its push into augmented reality --
perhaps a new version of "Pokémon Go"?
Write to Tripp Mickle at Tripp.Mickle@wsj.com
(END) Dow Jones Newswires
September 11, 2017 05:44 ET (09:44 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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