Apple is expected to reveal the new iPhone as soon as next month. Sources indicate that the tech giant will unveil the new iPhone on September 10 2013, the report comes after Apple’s June 29 earnings report which disclosed a drop in quarterly profits year-over-year.
Two months ago the company reported a decrease in quarterly profits ($6.9 billion compared to $8.8 billion in the year-ago quarter). Despite the decline in profits iPhone sales remained strong, the company shipped 31.2 million iPhones in the third quarter, a record for June sales. Both the Mac and iPad divisions saw a decline in sales however.
“We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services,” Said Apple CEO Tim Cook last month.
“We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”
The launch of the new iPhone could be a tactic to increase Apple’s market share which has shown symptoms of stagnation due to competition with both Android devices, fellow hardware manufacturer Samsung and new Chinese companies such as Lenovo and ZTE that are clutching a bigger chunk of the market.
Data from research firm IDC found that Apple’s global market share moved down to 13.2 percent in the second quarter from 16.6 percent in the year-ago period which raises questions as to whether or not Apple will take a new approach to brand management in order to tackle the Android problem.
Apple has reportedly been working on a cheaper iPhone for years; offering a lower-cost device could be a way to regain lost market share in the smartphone sector, and given the fact that the iPhone is a product directed to people with a relatively high disposable income and that Chinese companies seem to be seizing a larger portion of the market I wouldn’t be surprised if Apple decides to release a cheaper version of the iPhone alongside its latest model.
According to the WSJ there wouldn’t be much of a difference in appearance between the cheaper version and existing models other than the material, current iPhones have an aluminum body while the cheaper version would use a polycarbonate plastic frame.
The new iPhones will probably be running the new iOS 7 which includes an overhauled UI, improved notifications, and enhanced capabilities for developers. iOS 7 will also work on many recent iPhones, iPads and iPod touch devices.
Apple has yet to comment on the rumors.
