For the 10th anniversary iPhone Apple poses a new ambitious goal. We are talking about the release of a new smartphone that should be the next bestseller in the market, writes The Wall Street Journal.
Apple maintains secrecy regarding upcoming products, but it is expected that in the autumn the company will announce three new iPhone instead of the usual two – an updated version of the iPhone 7 and iPhone 7 Plus, as well as a special model for the 10th anniversary of the iPhone with a screen “edge to edge” and such new features like wireless charging and face detection technology.
New items will be an attractive purchase for those who are disappointed by the relatively minor changes in the flagships of 2016. However, analysts point out that the plan also involves great risks for Apple, including the possibility of higher prices, which may reduce the demand, more complex production requirements and the additional complexity in forecasting and marketing the third model.
Apple founder Steve jobs organized Apple’s revival in the early 2000s, partly due to the reduction in the number of sold products, adopting the philosophy that the production of a smaller number of higher quality devices will increase sales. The popularity of the iPhone confirmed this idea. But while Apple produces less mobile devices than many of its competitors over the past 10 years it has increased the number of colors from one to six, and expanded the number of models with one model per year to five last year, including iPhone 6, iPhone 6 Plus, and iPhone SE. Apple also produces four models of the iPad, two versions of the Apple Watch with a lot of variations, 11 Macs, Apple TV and accessories.
Most new products were produced without any problems under the leadership of CEO Tim cook, whose operational experience has helped turn Apple into the most expensive public company in the world. The company faced a problem when the release of her newest device, headphones, AirPods, was delayed for several weeks due to difficulties in production, and outstanding orders at him a lot. She also recorded weak sales of the iPhone 7 Plus, its most expensive device in the quarter through December, due to errors in forecasting supply and demand, which has recognized cook.
Waiting for the new iPhone helped to increase the price of Apple shares to record levels this year, although this growth was partially offset.
Difficulties with some of the hardware features of the expected iPhone have raised concerns about possible delays this year, especially the anniversary model. Some analysts expect that it will be released several weeks later because of the difficulties associated with the implementation of fingerprint scanner in a smartphone display. Apple also faces challenges in the lamination process during Assembly of the device, as reported by many analysts.
“If they lose just one week, it will lead to a significant loss of volume and revenue, and greatly disappoint the market,” said analyst supply chain at IHS, Markit Dan Panzica.
In 2012, Apple faced delays in production of the iPhone 5, which turned out to be more prone to scratches.
Broadcom Ltd., who supply chips for Apple’s iPhone, backed up the waiting delays at the conference for analysts on June 1, stating that the primary production of the next generation for any of the major North American customers “this year is slower than in previous years.”