Apple is heavily at risk by releasing three new iPhones this year

30 June 2017, 16:11 | Technologies
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By the 10th anniversary of the iPhone, Apple has set itself a new ambitious task. It's about releasing a new smartphone, which should be another bestseller on the market, writes The Wall Street Journal.

Apple remains secret about the planned products, but it is expected that in the autumn the company will announce three new iPhone instead of the usual two - the updated versions of the iPhone 7 and iPhone 7 Plus, as well as a special model for the 10th anniversary of the iPhone with a screen "from edge to edge" New features like wireless charging and face recognition technology.

The novelties will become an attractive purchase for those who are disappointed with the minor changes in the flagships of 2016. However, analysts point out that this plan is also associated with greater risks for Apple, including the possibility of a higher price, which can reduce demand, more complex production requirements and additional difficulties with forecasting and marketing of the third model.

Apple founder Steve Jobs organized the revival of Apple in the early 2000s in part due to the reduction in the number of products sold, adopting the philosophy that the production of a smaller number of higher quality devices will increase sales. The popularity of the iPhone has confirmed this idea. But while Apple produces fewer mobile devices than many of its competitors, over the past 10 years, it has increased the number of color solutions from one to six, and also expanded the number of models from one model year to five last year, including the iPhone 6, iPhone 6 Plus and iPhone SE. Apple also produces four models of the iPad, two versions of Apple Watch with a variety of variations, 11 models of Mac, Apple TV and a number of accessories.

Most of the new products were released without any problems under the leadership of CEO Tim Cook, whose operational experience helped turn Apple into the most expensive public company in the world. The company was faced with a problem when the release of its latest device, the AirPods headphone, was delayed for several weeks due to production difficulties, and there were still a lot of outstanding orders for it. It also recorded weak sales of the iPhone 7 Plus, its most expensive device, for the quarter to December, due to errors in forecasting supply and demand that Cook recognized.

Waiting for the new iPhone helped raise Apple's share price to a record level this year, although recently this growth was partially offset.

Difficulties with some of the hardware features of the expected iPhone have raised concerns about possible delays this year, especially with regard to the jubilee model. Some analysts expect that it will come out a few weeks later due to the difficulties associated with the introduction of a fingerprint scanner in the smartphone's display. Apple also faces problems in the lamination process when assembling the device, as many analysts reported.



"If they lose only one week, it will lead to a significant loss of volumes and revenues and will greatly disappoint the market," said Dan Pantsik, an analyst for IHS Markit's supply chains..

In 2012, Apple was faced with delays in the production of the iPhone 5, the new case of which was more susceptible to scratches.

Broadcom Ltd. , Which supplies Apple chips for the iPhone, reinforced expectations of delays at a conference for analysts on June 1 stating that the primary production of the next-generation device for one of the major North American customers "is slower this year than in previous years".




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