New iPhones aim to revive sputtering smartphone market

Speculation includes talk that Apple will introduce three new iPhone models

Apple is set to unveil new iPhones, aiming to gain fresh momentum in the premium segment of a global smartphone market showing signs of fatigue. In its usual secretive style, Apple has remained mum about revelations planned for Wednesday’s event at its campus in Silicon Valley, but the timing fits its pattern of annually introducing new iPhone models.

Speculation includes talk that Apple will introduce three new iPhone models, infusing some with features from a premium iPhone X that debuted last year with a $1,000 (Dh3,673) price tag. 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 as Chinese-based Huawei has grabbed the number two spot.

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 this year.

Technalysis Research chief analyst Bob O’Donnell agreed that Apple is 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 will likely be “offering a wider array of choices.”

Samsung, the world’s biggest smartphone maker, last month unveiled its latest flagship handset, the Galaxy Note 9, and next month Apple rival Google will hold an event at which it is likely to showcase new Android-powered top-end Pixel phones.

Apple’s event comes with the global smartphone market largely saturated, without a major catalyst for sales ahead of a likely roll-out of 5G, or fifth generation wireless networks, expected in 2019. Research firm IDC expects worldwide smartphone shipments to decline 0.7 per cent in 2018 to 1.455 billion units, with growth likely to resume as 5G devices become available.

Leaks and rumours have it that Apple plans to unveil three new iPhone models, including an improved version of the flagship X model released a year ago with a $1,000 price tag.

Apple doesn’t have to prove anything, other than that they are willing to segment the market more.” Bob O’Donnell | Technalysis Research chief analyst