Apple revamp called ‘just enough’
Stock slips as observers wonder whether new iPhones and iPads can maintain strong sales growth
Apple Inc. revamped its lineup Wednesday but the company’s shares slipped as experts fret about whether the changes are enough to keep up a blistering sales pace set with launch of the first big-screen iPhones a year ago.
The stock dropped 2 per cent to $110.15 (U.S.) in regular trading as the product event played out at the Bill Graham theatre in San Francisco. Apple traded flat after hours in a volatile session for tech issues.
The Cupertino, Calif.-based tech giant unveiled two new iPhone models, a 12.9-inch diagonal display iPad aimed at business and a refreshed Apple TV with voice control — amid headwinds from an economic slowdown in China and a high-end device market in the developed world that is near saturation.
“Overall, this is an evolutionary suite of products,” Strategy Analytics wireless director Neil Mawston said in an email.
He said Apple has done “just enough” to ensure it stays ahead of major rivals and is set for another fourth-quarter holiday season of strong growth.
Research firm Kantar Worldpanel said in a report it believes upgrades from older iPhone models allow Apple room to grow sales in western markets while Apple CEO Tim Cook said iPhone sales are buoyed by Android defectors.
He has cited rising iPhone activations in China but expectations are such that Wall Street will probably be disappointed if Apple fails to deliver another record quarter.
“How do you follow a success like this?” Cook said, referring to the iPhone 6 and 6 Plus, which pushed Apple iPhone sales ahead by more than 40 per cent year over year.
“I’ve been asked that question a few times,” he said before unveiling the new iPhone 6s and 6s Plus, which replicate the dimensions and basic design of the iPhone 6/6 Plus but add features, including a supposedly bend-proof aluminum alloy finish.
Maynard Um of Wells Fargo Securities said many investors already have “low expectations” of the new iPhones, which he said aren’t dramatically different from last year’s models.
Along with the new phones Apple announced the iPad Pro, which it hopes will reinvigorate Apple tablet PC sales after an 18-per-cent year-over-year drop in the June quarter. The device features a stylus and physical keyboard accessory that can take the total price above $1,000.
“As much as the iPad is experiencing some challenging times, it’s vastly more successful than any other tablet on the market and it’s still a multi-billion-dollar business,” Geoff Blaber of CCS Insight said in a blog post.
“A larger-screened iPad should definitely breathe some life into the category. But the price will be a barrier for many.”
While not providing sales data, Apple updated features for the Apple Watch, along with Apple Pay, aimed at generating revenue to complement the dominant iPhone contribution.
The wearable device will feature new apps, wrist straps and new hardware colours. The extra add-ons such as Facebook Messenger are designed to extend the life cycle of the first-generation watch after it captured a 75-per-cent share of the global smartwatch market in the second quarter, Mawston said.
Apple also unveiled the iPad Mini 4 and a new laptop-like Pro model with the stylus (pencil) and keyboard, deeper Microsoft Office integration.
Apple TV was updated with new Siri voice-controlled remote for the set-top- box that follows some of the innovation in rival products such as Amazon Fire TV.
“Plenty of focus on new video content and games, such as Hulu and Guitar Hero,” Mawston said.
“A good step forward, but not a TV revolution.”
The new iPhone 6s and 6s Plus were revealed with 3D Touch and intelligent haptics that allow users to tap, pinch, swipe, flick, force and peek at the touchscreen. The handsets also offer an enhanced 12MP camera and 4K video-capture for sharper colour and videos.