Wednesday unveil a new range of iPhone 14 models and Apple Watches that will test how willing consumers are to upgrade gadgets in the face of inflation and economic gloom.
To be sure, the world’s most valuable listed company will also likely keep some older or less advanced models at lower prices, and to date Apple’s relatively affluent fan base has shown more willingness to keep spending despite high inflation. But the new models will be Apple’s sales anchor during holiday shopping seasons in Western markets during a turbulent period. “Apple is not immune to economic weakness,” Bernstein analyst Toni Sacconaghi wrote in note to clients.
This year’s iPhones may have the ability to send emergency messages through a satellite Internet connection when Wi-Fi and mobile networks are not available. The messaging functions would likely be rudimentary, and other companies are working on similar functions. SpaceX founder Elon Musk said last month T-Mobile in the US would use its satellites to connect phones directly to the Internet.
Analysts also expect Apple to show a new range of Apple Watches, including an upgraded budget model called the SE and a Series 8 Watch. They also expect a new high-end watch called the Apple Watch Pro that will likely include new features for athletes, taking aim at rivals such as Garmin.But while accessories like the Apple Watch have driven incremental sales from Apple’s existing user base, the iPhone remains the bedrock of its business with 52.4% of sales in its most recent fiscal year.
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