Apple’s latest announcement brings us the newest generation iPhone 13, iPads and Apple Watch 7. Each of these devices promises improvements in hardware as well as new features. Apple has even expanded Fitness+, further increasing the reach of its services.
The newest iPhone 13 series, like its predecessors, will come in four flavors — iPhone 13 Mini, iPhone 13, iPhone 13 Pro and iPhone 13 Pro Max. Upgrades to the iPhone 13 include a dual-camera system, the latest A15 bionic chip, upgraded battery and storage starting at 128GB now. For the Pro series, additional improvements include a 120Hz refresh rate display, a penta-core A15 chip, up to a terabyte of storage, and further improvements in camera specs and features that Apple calls “cinematic mode”. No charger is included, like the iPhone 12.
iPhone 13 Impact on US Market
The iPhone 12 helped Apple give a large boost to its US iOS installed base, which reached almost 170 million users in Q2 2021. Continued strong promotions, especially from AT&T and Verizon, have helped the iPhone 12 maintain over 60% share of sales of all Apple iPhone products in the 10 months of sales since its launch. In comparison, the iPhone 11 series dropped close to 50% within the same time frame. Consumers are beginning to spend more money again, coming out of the COVID-19-triggered stay-at-home orders and with increased vaccination rates across the country. Apple is betting on continued momentum from this positive growth wave with its latest iPhone 13 series.
Carriers continue to be very aggressive with promotions as they want more people on their 5G service plans. Looking at the Apple.com offers, AT&T is offering up to $1,000 in credit after trade-ins of eligible devices, while Verizon is offering up to $700. T-Mobile is offering $700 or more, which includes an additional $500 from T-Mobile/Sprint. Apple’s own highest trade-in value peaks at $790 for an iPhone 12 Pro Max. AT&T has seen good momentum in upgrading its base, while Verizon will look to keep skimming off high ARPU customers from other carriers. Lastly, T-Mobile will make a grab for consumers using its large mid-band 5G spectrum to entice those looking to upgrade to the latest iPhone 13.
There are still some big unknowns ahead for Apple. The global component shortages may prevent the OEM from having adequate supply. However, Apple has been fairly immune to this so far. Furthermore, while the latest iPhones do offer some nice improvements in camera, display and storage, the iPhone 12 remains a very viable smartphone. Now that it is $100 cheaper, it may entice some customers who are on the fence about purchasing a more expensive iPhone. More to come.