Apple’s new iPhone 12 line features 5G support, A14 Bionic processors, OLED screens and a US$699 mini handset
- Apple unveiled its latest range of iPhones, which all support 5G, at a virtual event on Tuesday
- Some analysts praised Apple’s pricing strategy, especially for the iPhone 12 mini which costs US$699
At a virtual event on Tuesday, the company showed off the iPhone 12 in black, red, blue, green and white with a 6.1-inch screen. It starts at US$799. A smaller version, the iPhone 12 mini, costs US$699. The phones use aluminium sides.
There is also an iPhone 12 Pro, starting at US$999 and a iPhone 12 Pro Max that costs at least US$1,099, both with stainless steel edges. The Max has a 6.7-inch (17cm) screen, Apple’s largest ever, while the regular Pro has a 6.1-inch display. They come in blue, gold, graphite or silver.
Some analysts praised Apple’s pricing strategy, especially the US$699 mini handset which may entice users with older, smaller iPhones to upgrade.
“The pricing dynamics are the killer app for the phone launch,” Harsh Kumar of Piper Sandler & Co wrote in a research note. “Pricing was lower than our expectation, which is important in the current global pandemic.” Cheaper devices may help increase Apple’s installed base of devices, driving further growth of more profitable services, he added.
Apple to hold online event to unveil 5G iPhones on October 13
The front of the phones looks similar to last year’s iPhone 11, but the edges are now flat instead of curved. They all support 5G, a new wireless standard that can transmit data as much as 10 times faster than the current 4G LTE technology.
The Cupertino, California-based technology giant has generated relatively little sales growth from its marquee product in recent years as consumers hold onto their phones for longer. Quarterly revenue from this segment peaked in the first quarter of Apple’s 2018 financial year.
This year’s crop of new iPhones marks the first major redesign in three years, which could prompt more upgrades and a new spurt of growth. Investors and analysts are also bullish on sales in China, where 5G networks are more built-out than in the US.
“With our estimation that 350 million of 950 million iPhones worldwide are currently in the window of an upgrade opportunity, we believe this will translate into an unprecedented upgrade cycle for Apple,” Dan Ives, an analyst at Wedbush Securities, said.
Apple shares slipped 2.7 per cent, giving up gains of more than 6 per cent from Monday ahead of the event.
‘No holidays’ at iPhone 12 factory in China as production ramps up
The handsets have a faster A14 processor and updated cameras and use sharper OLED screens, an improvement from last year’s cheaper LCD screens, Apple said. The company showcased major improvements to the iPhone 12 Pro Max cameras, including with video recording and zooming in during picture taking.
The iPhone 12 and iPhone 12 Pro come out on October 23, while the iPhone 12 mini and iPhone 12 Pro Max arrive November 13. The first two models are available for pre-order on October 16, while the second pair go on presale November 6. The iPhone 12 for T-Mobile and Sprint, as well as a version not tied to a carrier, costs US$30 more than the Verizon and AT&T versions. That means the 64 GB version can be US$829, rather than US$799.
“iPhone 12 mini hits the magic US$699 price point,” long-time Apple analyst Gene Munster wrote on Twitter. “That’s a big deal and slightly expands iPhone’s addressable market. This is the first time in 7 years (iPhone 5s) that smaller form factor is part of flagship line-up.”
Apple said it tested 5G globally with 100 carriers. It added that the US models will support faster millimetre wave technology. Verizon Communications Chief Executive Officer Hans Vestberg joined the event to announce nationwide 5G coverage in the US and an expansion of its fastest, ultra wideband 5G service, which relies on millimetre wave spectrum.
The battle over 5G
Citi analyst Jim Suva said the inclusion of millimetre wave in all US iPhone 12 models was positive because there was concern before the event that this functionality would only be available in the higher-end devices.
In the first quarter of this year, phone makers led by Samsung shipped 3.4 million 5G phones in the US, a fraction of the overall market, Strategy Analytics data show. In a few other countries, 5G has performed far better. A third of phone sales in China during the second quarter were 5G handsets, according to Counterpoint Research.
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Tests by IHS Markit’s RootMetrics across 125 US areas in the first half of 2020 showed that 5G speeds on AT&T, T-Mobile US and Sprint are only slightly faster than 4G LTE. AT&T and T-Mobile, which bought Sprint, have both claimed their 5G networks are available “nationwide,” a metric that means they can reach 200 million people, but coverage is still often sporadic and data speeds are not consistently faster.
The handsets also support a new magnetic version of wireless charging called MagSafe. That lets the phones magnetically attach to new charging pads from Apple and other providers. Apple will also offer several new cases to support the new charging system.
Apple did not include headphones or a charging adaptor with the new iPhones, a move it said would be beneficial to the environment. Citi’s Suva said excluding the accessories in the box could spur purchases of AirPods and new charging accessories.
