Apple set to release new iPhones as global market sputters

Tech giant Apple is set to unveil new iPhones, aiming to gain fresh momentum in the premium segment of a global smartphone market that is showing signs of fatigue.

In its usual secretive style, Apple has remained mum about revelations planned for Wednesday’s event at its Silicon Valley campus, but the timing fits its pattern of annually introducing new iPhone models. Speculation includes talk that Apple will introduce three models.

While the iPhone has made Apple the world’s most valuable company worth more than $1 trillion, it has slipped to third place among smartphone makers, with Chinese-based Huawei occupying second place.

Still, analysts say Apple has a formula that works with a loyal customer base and steady sales.

“There is nothing in their product line-up that isn’t working for them in the premium segment of the market, so there is no imperative for them to break that mould,” NPD analyst Stephen Baker said of Apple likely sticking with modest improvements in new iPhones in 2018. “They gobble up most of the profits. I don’t think they are under any pressure at all.”

Technalysis Research chief analyst Bob O’Donnell agreed that Apple was fine with holding its niche in the market.

“Apple doesn’t have to prove anything, other than that they are willing to segment the market more,” he said, while pointing out that the company would likely be “offering a wider array of choices”.

Research firm IDC expects global smartphone shipments to fall 0.7% in 2018, with growth likely to resume as 5G devices become available.