Apple Inc (AAPL.O) on Wednesday is expected to 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.
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 (TMUS.O) 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.
