5 Charts Showing What to Expect from Apple’s iPhone 15 Launch in 2023
Apple’s annual iPhone unveiling is a highly anticipated event that marks the beginning of the holiday selling season and showcases the company’s latest model. However, this year’s iPhone 15 lineup holds even greater significance for Apple. With the introduction of these new models, Apple aims to reverse its prolonged period of sluggish sales, the longest in twenty years, and reignite consumer enthusiasm by offering innovative features for upgrading. The unveiling is scheduled for Tuesday at 10 a.m. California time.
Apple has also just renewed an agreement to source modem chips from Qualcomm Inc., a sign that building its own components is taking longer than expected.
But the company has several things going in its favor, including an iPhone with attractive new features. And demand for the product has held up better than its Android counterpart. Apple has also successfully shifted more consumers to more expensive models, which has helped it charge higher prices.
1. Apple’s flagship product
The iPhone is Apple’s biggest source of revenue, accounting for about half of its sales. Add in the Apple Watch and AirPods, which will also be updated at the event, and you’re close to 60%.
2. Sales collapse
The entire smartphone industry has been at a loss, and Apple has not been immune. Slow iPhone sales dragged down its overall revenue, which is expected to decline this year for the first time since 2019.
Sales should begin to recover in the first financial period of 2024, which runs until December.
3. More high-end iPhones
Apple has steered customers more and more towards its more expensive phones by packing them with unique features and more powerful chips. This trend will continue this year, and Apple is expected to raise prices in at least some markets.
4. Better performance
Apple has weathered smartphone slowdowns better than most manufacturers. Although its handset shipments fell 2% in the latest quarter, IDC said that was better than Samsung Electronics Co’s 15% decline. Performance has helped Apple increase its market share.
5. China’s concerns
The key question is whether Chinese consumers will embrace the iPhone 15 in the same way they have with previous models. The market has been a bright spot for Apple recently, but the government’s bans have raised fears that the atmosphere could turn against the company. Huawei Technologies Co’s new smartphone with a fast processor may also shift demand away from the iPhone.
Apple has seen this scenario before. It suffered weakly in China in 2019 as the nationalist spirit swept the country. But demand eventually recovered. Investors will be watching holiday sales closely to see if Apple can rise to the challenge this time around.
