So begins the speculations of what we can expect from Apple (NASDAQ: AAPL) this year.
Apple has a big anniversary this year: It’s been 10 years since it introduced the iPhone to the world.
The iPhone is a technology that changed humanity forever — easily connecting us to unlimited knowledge, friends, and family.
Just think for a moment what it would be like to not have your smartphone with you on any given day… How would you get directions to that new restaurant you want to try out? How would you settle an argument among friends without having access to the web to search for the correct answer? So many “easy” situations would become a lot harder.
While at the same time, you could probably argue that without the technology, we wouldn’t have known the difference, and we’d still somehow manage to get the same information. But I guarantee you that it wouldn’t be as easy.
There’s a lot of pressure and a lot of expectations from consumers now, which is why companies like Apple try to remain hush-hush about what we can expect from new devices and technology. But sometimes, as hard as the company tries to remain secretive, information still gets leaked.
Leaks, Leaks, and More Leaks
Over the weekend, alleged Foxconn employees (the Chinese manufacturer that makes Apple’s products) took to the internet (more specifically, to a Reddit channel) to conduct an Ask Me Anything (AMA) session.
Reddit users kept the questions rolling, asking about Apple’s iPhone 8, Apple “smart glasses,” upcoming MacBooks, and so much more. These Foxconn employees weren’t holding back and were answering a majority of the questions being asked.
According to the leakers, the newest iPhone model is being referred to as “iPhone X,” but that’s most likely a codename and not what the phone will actually be called.
It was also leaked that the phone will feature wireless charging and continue to use Apple’s Lightning input instead of USB-C. It’ll have a fingerprint sensor under its screen and the rear camera will be reoriented from horizontal to vertical. Another interesting feature will allow facial detection and retina scanning through the phone’s front camera.
The Foxconn employees confirmed that the production of the upcoming iPhone has been delayed.
These leaks came a few days before the 2017 annual Apple Worldwide Developers Conference (WWDC) that’s scheduled to take place between Monday, June 5th, and Friday, June 9th. This is one of Apple’s biggest events each year.
However, we won’t be getting any official news about the upcoming iPhone at this conference. Instead, it looks like the main topics are more focused on Apple’s newest device, the HomePod, which will take Apple’s digital assistant Siri to the next level — competing directly with Amazon’s Alexa and Google’s Assistant.
Another big topic at the WWDC was the recent upgrade to Apple’s operating system (iOS). Some iOS updates include an updated Siri — improved speech, ability to translate sentences in different languages, and on-device learning that would allow Siri to suggest actions based on what you do on your iPhone or iPad.
For a while, it seemed like Apple was lagging behind in comparison to its rivals, which have come out with products that are innovative and have moved alongside the ever-changing world of technology.
But Apple’s stagnation might be coming to an end if its HomePod succeeds. It’s obvious that the company wants to work toward improving itself in the realm of artificial intelligence (AI).
The Aftermath
Obviously, there’s no confirmation on whether these leaks are actually true or not, so it’s hard to say what we can really expect from the newest iPhone. But there are a few analysts who believe that Apple will see another lackluster year because of disappointing improvements to its newest iPhone.
Or at least the anticipated features won’t be that innovative.
Andy Hargreaves, an analyst at investment banking firm Pacific Crest, has downgraded Apple’s shares to sector weight from overweight.
Hargreaves had this to say in a note to investors:
We believe AAPL anticipates strong performance in the iPhone 8 cycle, while providing relatively little weight to risks through the cycle or the potential for iPhone sales to decline in FY19.
And he isn’t the only one who feels this way — five other analysts have put a hold rating on Apple’s shares, believing that the stock will lower by $10 within the next year.
Maybe the time has just come to stop anticipating the newest technologies for smartphones and start anticipating other areas of technology that will revolutionize the world.
Until next time,
Jennifer Clark
Pro Trader Today