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Analysts expect Apple to announce that the latest iPhones can
send emergency messages using satellites at the event titled
"Far Out" at its Cupertino, California, headquarters. Beyond
that, analysts expect a family of iPhone 14 models with
incremental upgrades - slightly better cameras, processor chips
and, critically for Apple's bottom line, prices $100 or more
higher than last year's models.
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 WiFi 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 will use its satellites to connect phones directly to
the internet.
Bob O'Donnell of TECHnalysis Research said that the peace of
mind from being able to send emergency messages could spur Apple
users to upgrade their phones for the satellite feature.
"Even though it's not something you do every day, it'll change
your perspective on what you do with your phone," he said.
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 Ltd.
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. Investors have been watching for
Apple's next major product category since the Apple Watch
launched in 2015.
Some analysts believe Apple might give a preview of that future
by showing a mixed-reality headset on Wednesday. The device is
expected to have cameras that pass-through view of the outside
world to the wearer while overlaying digital objects on the
physical world. Analysts do not expect the device to go on sale
until next year at the earliest.
An early preview would be rare for Apple, which keeps its
product plans secret until just before devices hit the market. A
rival headset called Project Cambria is in the works from Meta
Platforms Inc, which is spending billions of dollars on the
project.
But in order to have compelling apps for a new headset, Apple
might need to give developers time to become familiar with it.
"Developing for a new and radically different type of platform
is going to take people a lot longer," O'Donnell said.
(Reporting by Stephen Nellis in San Francisco; Editing by Peter
Henderson and Lisa Shumaker)
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