Over the past decade, September has been the month
when Apple revealed its latest
iPhone. The company served up swaggering
advances in technology, year after year, that propelled its business as Apple
became the world’s most valuable company.
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But as the marquee
device has grown older and its improvements have gotten more incremental, the
tech giant has shifted its focus to younger products with more runway for
innovation: the
Apple Watch and AirPods.
Apple on Wednesday
unveiled a fitness-focused version of its wearable computer, the
Apple Watch Ultra. Aimed at triathletes, distance runners, scuba divers, and backcountry
enthusiasts, the rugged $800 model features a larger screen and improved
durability. It also has an “action” button to make it easier to use while
wearing gloves, bigger speakers for calls in windy conditions and a larger
battery with a 36-hour life span on a charge.
New features for
Apple’s wireless earbuds, the AirPods Pro, include the ability to change the
volume with the swipe of a finger.
While the iPhone
still accounts for more than half of Apple’s sales, the smartwatches and
AirPods, which require an iPhone to work optimally, have helped the company
build a fortress around its most important device, deepening customer loyalty.
“The more products
you have from Apple, the more impossible it becomes to leave Apple for another
player,” said Francisco Jeronimo, vice president of device research at IDC, a
market research firm. “Your entire life becomes part of a single ecosystem.”
Apple has used the
iPhone, which has more than 1 billion users, to enter new markets and conquer
unrelated businesses. It has helped Apple disrupt the finance industry with its
own credit card, the watchmaking profession with its own timepiece and the
audio industry with its wireless headphones.
The Apple Watch
Ultra is the latest example of how the company can extend its tentacles. It
thrusts Apple into a corner of the smartwatch market dominated by Garmin, which
does about $2.6 billion in sales to endurance-sports competitors, according to
IDC. With Apple’s brand recognition and the iPhone’s popularity, it should be
able to cut into that share, Jeronimo said. It already claims nearly 51 percent
of the smartwatch market, more than double its closest competitor, Samsung.
Garmin said on
Wednesday that Apple’s move into adventure smartwatches validated the business
it had built. “We will continue to push the limits of GPS-enabled technology
and remain committed to creating innovative products designed for active
lifestyle customers around the world,” said Krista Klaus, a company
spokesperson.
In addition to the
fitness-focused watch, Apple released an update for its traditional watch, the
Series 8, with a sensor to track body temperature and a feature called “crash
detection,” which can identify when an Apple Watch wearer is in a car crash and
notify family and emergency services.
Apple unveiled the
products at the Steve Jobs Theater on its campus in Cupertino, California, the
first time it had held a product event there since 2019. The venue was packed
with journalists and employees, who celebrated the return to normalcy by
cheering as CEO Tim Cook took the stage to introduce an infomercial detailing
the new products.
The Apple Watch’s
new abilities overshadowed more modest updates to the iPhone lineup. Apple
released introductory and higher-priced versions of the iPhone 14 with 15.5-cm
and 17-cm displays. Both models add the abilities of a satellite phone, allowing
users to connect with emergency services in rural and other remote environments
so they can get help if they are lost while hiking or find themselves in some
other dire situation.
The lower-priced
iPhone 14, which costs $800, features last year’s processor but has improved
front and rear cameras with larger sensors to capture clearer photos in low
light.
Apple saved its
biggest design changes for the iPhone 14 Pro, which costs $999, the same as
last year’s flagship phone. The new phone eliminates the notch for its Face ID
system in favor of a small cutout that contains the front camera and displays
alerts and notifications. The phone also has an “always on” display to
illuminate information like a clock without unlocking the phone, and a slimmer,
black border around the screen.
Unlike the
lower-priced iPhone 14, the Pro model features a new processor, the A16, which
supports an improved camera with a larger sensor for better photos. It also
supports new machine-learning algorithms to enhance the details and sharpness
of photographs.
Despite having some
of the highest prices in the smartphone market, the iPhone enjoyed a business
revival during the pandemic. For its last fiscal year, Apple posted a record
$192 billion in revenue from the iPhone alone, a 14-year-old device that has
become better known for incremental improvements than revolutionary
innovations.
Apple expects the
iPhone 14 to sustain that momentum. Though other smartphone manufacturers are
cutting production as the global economy cools, Apple plans to make more phones
than it did a year ago, according to Susquehanna International Group, a
financial firm.
The company has
broadened its customer base in recent years by offering seven models of the
iPhone, ranging in price from $429 to more than $1,500. Its luxury pricing has
helped it accumulate more affluent customers than rival smartphone makers, but
about a third of iPhone buyers earn less than $50,000 a year, according to
Consumer Intelligence Research Partners, a tech research firm.
The iPhone 14 may
be more notable for where it’s being made than its new features. This year, for
the first time, Apple will assemble some of its flagship phones in India, part
of a strategy to decrease its dependency on
China, where it produces the vast
majority of its products.
Efforts to
diversify its supply chain have assumed greater urgency for Apple this year
amid pandemic-induced disruptions in China and escalating geopolitical tensions
over Taiwan’s status.
“We’re in a
post-maturity phase of the iPhone,” said Bob O’Donnell, founder of Technalysis
Research. “It’s getting harder and harder to tell generations of the device
apart.”
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