Despite all the rumors, everyone is holding their breath for the unveiling of the latest iPhone in just a few short months.
Some are eager to see the launch of the new iPhone as the rejuvenation of Apple (NASDAQ: AAPL) after its latest failings.
Others are eager to see the launch bring about the inevitable slow death of the tech giant.
Until then, rumors that include the leaked information will continue to circulate and stir up a lot of buzz.
However, one thing is true: Apple has a lot riding on its next-generation iPhone.
But will the tech giant be ready to deliver the goods by September?
The Copycats
Apple is rarely the first to adopt a new technology: It is known.
From smartphones to fingerprint readers, Apple’s typical method is to sit back and watch what other companies do and then produce a better version later on.
Selling “me-too” devices at premium prices has worked for them so far. But it’s hard to imagine Tim Cook trying anything too out of the box in his quest to maintain Apple’s incredible market valuation.
So, like it or not, we probably won’t see anything too groundbreaking with the 10th-anniversary edition iPhone.
It even appears that for this go-around, Apple will copy its rival Samsung (OTC: SSNLF).
The new Samsung Galaxy S8 was announced earlier this month. It features a curved screen and radically reduced bezels at the top and bottom of the device so the front appears to be almost nothing but an OLED screen.
The S8 hasn’t been officially offered to the public yet; that is set for later this month.
Initial reviews from journalists have been pretty positive, with most of the praise being awarded to its innovative design.
According to the latest rumors, Apple and even Google (NASDAQ: GOOGL), plan to copy Samsung’s design in their upcoming devices.
The 10th-anniversary edition iPhone 8 is rumored to be getting a redesign and will include a curved S8-style OLED screen.
In both cases for Apple and Google, the usual caveats apply: These are rumors and are not confirmed features.
Companies rarely ever discuss upcoming product features before they’re formally announced to the public.
Missing the Mark Already?
Surely, we were all expecting something grand from Apple, considering that this will be its 10th-anniversary edition of the iPhone.
But the expected features of the next iPhone are heard to be pretty tame and lackluster.
Some sources have reported that Apple has been stymied in its efforts to integrate new tech and that this year’s September rollout is in doubt.
Though Apple never mentioned its latest model directly during its Worldwide Developers Conference (WWDC), it did introduce its new operating system (iOS 11), which provided some clues as to what we can expect.
Some specs we might see with the anniversary model include:
- Home button and Touch ID embedded within the display or located on the back of the phone.
- New Touch ID that features face or iris scanning.
- Curved, edge-to-edge OLED display with True Tone technology, possibly with Ion-X glass.
- Facial recognition software via LG’s 3-D sensor technology.
- Wireless charging.
- Dual-lens camera.
- Software support for Apple Pencil.
- Enhanced water resistance.
- Apple’s next-generation processor (A10X or A11).
- Upgraded storage starting at 64 GB and 3 GB of RAM.
- Intel or Qualcomm modem.
These tepid features come as a surprise as Apple is really banking on this launch to counteract its recent plummeting iPhone sales.
Apple is also betting on high volumes upon the newest edition’s release.
The company continues to struggle with maintaining high margins as it adds some new features here and there, while slowly increasing the prices of its smartphones.
A richer mix of iPhone models will surely help Apple show growth in profits, but only if the volume of devices is sustained or grows.
That depends on just when the iPhone 8 will be released and on how many consumers will be willing to pay a hefty $1,000 for a single phone.
But according to the buzz, there are some serious questions about whether the company can manufacture the new edition in time to deliver on schedule in early September.
Of course, the company made no comment about this during WWDC.
Outdated Before It Even Launches
The iPhone 8 may already be leagues behind its Android rivals, and it hasn’t even been released yet.
A new report from Bloomberg says that Apple doesn’t currently plan to support next-generation Gigabit LTE networks.
That’s huge when you consider that wireless carriers, like Verizon (NYSE: VZ) and AT&T (NYSE: T), are beginning to roll out much faster networks around the U.S. this year.
Just how fast is Gigabit LTE? It’s fast — imagine downloading entire movies in just seconds rather than minutes.
Bloomberg mentioned in its report that Apple typically sources its chips from Intel (NASDAQ: INTC) and Qualcomm (NASDAQ: QCOM).
While Qualcomm already offers Gigabit LTE support in its newest modems, Intel won’t roll out support until sometime next year.
Apple will most likely choose to not give all of its business to Qualcomm, considering that the two companies are currently embroiled in a legal battle.
This is a big deal for consumers who will buy the new iPhone and then realize that it’s already outdated and runs on slower networks than other phones that support Gigabit LTE — like the Galaxy S8, for example.
Considering the rather thorny relationship between Apple and Qualcomm, Apple won’t enable some of the capabilities of other phones that run with Qualcomm modems until Intel is able to offer chips with matching features.
It might not matter much throughout the rest of the year as carriers are still working to activate newer and faster networks, but it’ll matter over the lifetime of the phone for consumers who keep their iPhones for two years or more.
So, I guess we’ll just have to wait and see what Apple decides to unveil in September and whether or not it will “wow the crowd.”
That’s all for now.
Until next time,
John Peterson
Pro Trader Today