As the likely launch date of the new iPhone approaches, Wall Street is getting jumpy about its chances of success. The next-generation device, which may be called either the iPhone 6S or iPhone 7, is expected to launch in mid-September, and Apple's shareholders will expect it to build on the huge success of its predecessor.
There's little doubt that the new iPhone will sell by the million and generate queues outside the world's Apple Stores, but Apple's share price has fallen in recent months as doubt grows about whether the next iPhone will be as much of a money-spinner as the last.
The company is widely expected to unveil the iPhone 6S or 7 on 9 September, and new reports in the past few days have suggested that the device will go on sale in key markets, including the UK, Japan and Germany, on 18 September (see below).
Those dates would be in line with the usual launch schedule for the iPhone: last year's upgrade was revealed on 9 September and made available to buy on 19 September.
Unlike last year's all-new device, the iPhone 6S or iPhone 7 is likely to include only incremental improvements over its predecessor – and that could lead to disappointment for Apple's customers and shareholders.
"Apple is slumping as the usually high-flying tech company struggles to impress investors with the burden of raised expectations," News.com.aureports.
Acknowledging that the company sold 47 million iPhones last quarter, 35 per cent more than a year ago, it nevertheless notes that analysts had expected even more from the iPhone 6 – and suggests that there could be worse news to come with the launch of the iPhone 7.
"KGI Securities, which has an accurate track record when it comes to predicting the success of future Apple products, is now forecasting zero or even negative growth of iPhone sales in the last quarter of 2015," the paper reports.
In other words, they're predicting that the iPhone 6S or iPhone 7 will sell less well than its predecessor.
That cuts against report of Apple's own expectations. Last month, the Wall Street Journal reported that the company had ordered between 85 and 90 million new iPhones for the period between the launch and the end of 2015 - more than it has ever built before. Last year, it ordered 75 to 80 million iPhone 6 units for the equivalent period.
"Apple Inc is preparing for a larger initial production run of its next iPhones," the paper reports, "betting that even modest hardware changes will entice consumers to upgrade handsets and outstrip demand for the larger-screen phones that it released last year."
Nevertheless, investors appear to be unconvinced, and have been selling off Apple shares, which were traiding at $133.60 in February. They closed yesterday at $116.5, a fall of 14 per cent since that peak - in part because China's falling currency will make imports more expensive, hurting iPhone sales there (see video below), but also because investors are concerned that the company is not maintaining momentum is sales growth.
Even so, Apple remains by some margin the most valuable company in the world by market capitalisation.
Video: Apple's China problem
iPhone 6S or iPhone 7 'on sale on 18 September'
19 August
Two German mobile phone networks are preparing for the iPhone 6S or iPhone 7 to go on sale on 18 September, suggesting that Apple is planning to repeat the launch pattern of previous years for its 2015 iPhone upgrade. A second leak, from Japanese Home, suggests that Japan is also gearing up for an 18 September debut.
Last week leaked information suggested that Apple will schedule its launch event for the new phone for 8 or 9 September (see below), and the on-sale date has typically followed on the Friday of the week after the grand unveiling.
The handset is likely to go on sale in the UK on the same day as in Germany and Japan, according to Apple Insider.
"Germany has long been one of Apple's first-tier launch countries," the website reports. "If the rumored launch date is accurate, that would therefore point to when the 6s will ship in other first-tier regions — namely Australia, Canada, France, Hong Kong, Japan, Singapore, the UK and the US, with mainland China being a possibility."
iPhone 6S or 7: launch 'set for 9 September'
Here's what we know about the iPhone 6S – or could it be the iPhone 7? – a month before its likely launch date
13 August
Apple is planning to reveal its new smartphone – likely to be called either the iPhone 6S or iPhone 7 – on Wednesday 9 September, according to reports that have been seized on by Apple enthusiasts.
And today a significant leak set out the way in which Apple plans to implement what is likely to be the most significant new feature – Force Touch.
Force Touch for iPhone
For several months Apple has been expected to furnish the iPhone 6S or 7 with Force Touch, a new input method already available on the Apple Watch and MacBook laptop. But now we know precisely how it will work on the smartphone, if today's leak turns out to be correct.
Force Touch makes use of a modified touchscreen which can differentiate between a light tap and a longer, harder touch, and react differently to each. For example, on the Apple Watch, a light tap on an email opens it up to be read, while more sustained pressure takes the user directly to the reply screen.
On the iPhone 6S or 7, says 9to5Mac, Force Touch will let you skip long lists of menus.
"A user can look up a point of interest in the Maps application, and then Force Touch on the destination to immediately begin turn-by-turn directions, the website says. "Currently, if a user wants to start navigating to a destination, she must search for the point of interest, click the navigation logo on the map view, then click another button to actually start navigating. In this case, the Force Touch gesture will skip two steps."
In other contexts, Force Touch will bring up menus containing further options, for example a firm press on the phone icon on the home screen will let you "shortcut directly to the voicemail tab".
iPhone 6S or 7 launch date
Late last week, details emerged about when Apple would unveil the 2015 iPhone upgrade.
"The company intends to hold a special event the week of Sept. 7, with Wednesday the 9th being the most likely date," reports John Paczkowski ofBuzzfeed.
Tech news site MacRumors says Paczkowski "has provided reliable information on event dates in the past", but a Wednesday launch for the iPhone 7 would break with recent Apple tradition. For the past two years, Apple has held each of its annual iPhone events on a Tuesday, with the new models going on sale on the Friday of the following week. For that reason, The Independent suggests that Tuesday 8 September is the likely launch date.
Doubt also surrounds the extent of the changes planned for Apple's flagship phone – as well as the new model's name.
Most commentators say the company will keep to its usual product launch schedule, in which it follows an all-new product one year with minor upgrades the next.
After last year's iPhone 6, which brought in a new look, larger screens and significant new features, major changes this autumn would come as a surprise. Therefore, they say, the 2015 model will be called the iPhone 6S.
But Ming-Chi Kuo, an analyst at KGI Securities with contacts inside Apple's Chinese and Taiwanese supply chains, has said that this year's upgrade will be substantial enough for Apple to justify breaking with tradition and calling the new phone the iPhone 7.
Apple itself never comments on new products until their official launch, but the company's new operating system, iOS 9, reveals many of the developments we can expect in the iPhone 6S or iPhone 7.
"Updates and features include Siri becoming more proactive in recognising your behaviour, longer battery life and improvements to existing apps including Maps and Notes," says the Daily Telegraph. "The new News app aims to provide an experience akin to reading a magazine, with big glossy visuals."
One expert scouring the code of iOS 9, which has already been released to app developers, has found evidence to suggest that the new iPhone will have a much-improved front-facing camera.
Hamsa Sood says the iPhone 7's "selfie-cam" will be capable of shooting slow-motion, 240 frame-per-second video, along with 1080p video at normal speed, and panoramic still images. Other leaked information is yet to back up this theory, but Sood has been a reliable source of advance information about previous Apple launches.
Most analysts are agreed that Apple will have to increase the resolution of the rear-facing camera to at least 12 megapixels in order to keep pace with rivals, and some have suggested that Apple is planning an even more significant camera upgrade (see below).
More iPhone 6S and iPhone 7 rumours
There's nothing like a new Apple product to fire up the rumour mill. Here's what tech insiders think we can expect from the iPhone 7:
iPhone 6S or 7 price: There is no word yet on the likely cost of the next iPhone, but we can be sure that it will be at least as expensive as the existing model. That means an entry level price of £539 for a 16GB, 4.7-inch model, and £619 for the 5.5-inch plus model. However, prices may be even higher if Apple follows Samsung's lead. The latter has priced the Galaxy S6 Edge at £760, which may tempt Apple to push up its own prices and profit margins.
Few high-profile design changes: Having come up with an all-new aesthetic for the iPhone 6, Apple is unlikely to alter the overall look and feel of the handset for the next update. Until recently, the assumption was that the iPhone 6S or iPhone 7 would look all but identical to its predecessor, but the latest reports suggest that the new phone may be slightly thicker, taller and wider (see below). Most analysts still believe that there will be no dramatic redesign, with most physical changes imperceptible at first glance.
New aluminium frame: Although the design is unlikely to change substantially, it may be built from a new material. According to Taiwan's Economic Daily News, Apple is planning to make use of the "Series 7000" aluminium alloy it developed for the Apple Watch on its smartphones too. The metal is "designed to be 60 per cent stronger than most aluminum, and one-third the density of stainless steel, while still maintaining a light weight", MacRumors says.
Pretty in pink: one aesthetic change we can expect is a new colour added to the iPhone 6S palette, according to the Wall Street Journal. The paper has spoken to a source who has confirmed that the next model will keep the same screen sizes as the current phone, but will be available in pink as well as black, white and gold. In formulating the particular shade of pink, Apple seems more likely to follow the lead of the rose gold Apple Watch rather than the candy-bright iPhone 5C. More recent reports suggest that other iPhone colours will be brought into line with those of the Apple Watch: space grey will become darker and gold will be yellower in tone.
More powerful processor: Back in January a Taiwanese tech news website reported that sources in the Apple supply chain had revealed that the iPhone 6S would have 2GB of Ram, twice what's available in the iPhone 6. It seemed like a credible claim given that Apple often upgrades processor chips the year after it releases an all-new iPhone design, and it has since been backed up by similar reports from other sources. AppleInsider reported last week that its own inside man has confirmed that the new phones will go on sale with a 2GB chip. "Additional Ram would allow iOS to leave background tasks and tabs in Safari open for longer without a need to reload or refresh," it says. "But additional RAM can also come with costs to battery life, as memory constantly consumes power."
Improved TouchID sensor: The company has big plans for Apple Pay, the payment system that it hopes will take the place of credit and debit cards for in-store transactions. According to analyst Ming-Chi Kuo, the company is preparing "a better and and safer Apple Pay user experience by reducing reading errors" of its fingerprint scanner. That may also help to allay security fears as British banks give customers the option to sign in to their accounts using TouchID.
Front-facing camera upgrade: A developer scouring the code of Apple's latest operating system, iOS 9, which is expected to launch at the same time as the next iPhone, has found clues about what we can expect from the new model. Hamsa Sood says the "selfie-cam" on the new iPhone will be capable of shooting slow-motion, 240 frame-per-second video, along with 1080p video at normal speed, and panoramic still images. This is the only significant leak so far about the front-facing camera, but Sood has been a reliable source of advance information about previous Apple launches.
Dual-lens camera: In February rumours emerged that the main, rear-facing camera could be in line for a substantial overhaul. John Gruber of Daring Fireball, a respected source of Apple information, said he has heard that the iPhone 7 might get "the biggest camera jump ever". He added: "I don't even know what sense this makes, but I've heard that it's some kind of weird two-lens system where the back camera uses two lenses and it somehow takes it up into DSLR quality imagery." That vague suggestion has now been largely discredited, as adding a second lens to the rear of the camera would require a thorough redesign of the handset chassis, and that's unlikely so soon after the all-new iPhone 6 was released (see below). Nevertheless, much speculation has been devoted to the camera, and changes are still expected.
3-D camera: This is a long shot, but not entirely out of the question. Apple has recently snapped up an Israeli-based company called LinX, which specialises in high-tech camera sensors. That, according to Business Insider, could have a dramatic effect on the camera capability of the iPhone 7. "LinX's technology won't only enable the iPhone to take better, sharper images – it could also allow the phone to capture three-dimensional photos, eliminate an annoying aesthetic problem where the cameras on the latest iPhones stick out, and solve a bunch of other problems." Having spent $20m acquiring the company, Apple is likely to be looking for ways to capitalise on the technology it now owns – but it may not be ready in time for the iPhone 7.
Sapphire crystal display: Persistent rumours and reports suggested that the last iPhone would benefit from a sapphire crystal screen coating - and immensely strong glass-like substance that is highly scratch resistance - but in the end it never materialised. Reports suggest that Apple and its suppliers had trouble manufacturing sufficient quantities to equip the iPhone 6 and 6 Plus, but already the rumour mill is chattering about the prospect of a sapphire crystal iPhone 7. That may be wishful thinking, but the company did use sapphire crystal for the Apple Watch, which launched in the spring – and has been keen to transfer technology from the watch to its smartphones.
Higher-resolution screen: When Apple launched the iPhone 4 in June 2010, it said the "Retina" screen provided the maximum resolution perceptible to the human eye. Nevertheless, it stepped up resolution for the iPhone 6 Plus, boosting pixels per inch from 326 to 401 for its supersized smartphone and describing the new screen as a "Retina HD Display". The 4.7-inch model retained the 326ppi screen, but reports from China quoting supply chain sources suggest that the smaller version of the iPhone 7 may get a screen that's slightly larger and significantly sharper. "The iPhone 7 could very well sport a five-inch screen with 400ppi resolution," says IT Pro. Changing the size of the screen would be an unusual step for the first upgrade following a major redesign, but it would tally with the claim that the frame of the new handset will also be slightly larger than the one it replaces.
Four-inch iPhone 6C or 7C: The rumour that refuses to die… Perhaps more in hope than expectation, a range of Apple-watchers have been predicting that the company will supplement its iPhone range with a high-spec four-inch-screen iPhone mini. Apple used to specialise in small-screened phones, but since the launch of the iPhone 6 and 6 Plus, fans of four-inchers have had to make do with the 5S which is beginning to show its age. Leaks suggest that Apple will keep building a four-inch phone, but it remains unclear whether it will be an all-new iPhone Mini or an updated version of the 5S.
A trade-in scheme for non iPhone users: iPhone owners are already able to trade in old phones for the latest models, and now Apple is planning to extend the offer to owners of smartphones made by other companies. "Apple will soon introduce a new recycling and trade-in program that will accept non-Apple smartphones, notably including Android and BlackBerry devices, in exchange for gift cards to be used toward the purchase of new iPhones," reports 9to5Mac.com. The program is designed to encourage more people to make the switch to Apple, in the hope of developing long-term customers.
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