On Wednesday, executives from Apple are expected to demonstrate the iPhone 14 at the company’s headquarters in California. Apple is expected to highlight faster game performance or newly released always-on-screen technologies, and rumors say the notch where the selfie camera rests may be smaller. But the innovation introduced two years ago—5G wireless—is what the company is putting the most stock in to lure customers.
Yes, 5G may seem like ancient history to some. In the eyes of some, it’s simply a higher number than the previous 4G standard. However, there is mounting evidence that 5G connectivity is quickly overtaking battery life and storage space as the two most crucial aspects of modern iPhones. According to a study by the consultant Deloitte, the current wireless standard, which has been offered by all of the major US carriers for some years, is the second most common reason customers give for switching cell providers, right behind “better value for the money.”
This is in stark contrast to how 5G was received during its introduction and in its early years, when the service went live with much fanfare but limited availability. The carriers have invested billions of dollars in the underlying infrastructure and airwaves to support it, however, leading to improved service in many areas.
The iPhone’s enduring appeal is put to the test annually, and this year will be no exception. According to virtually all metrics, Apple’s iPhone is its crowning achievement. Apple rung up more than $191.97 billion in iPhone sales last year, which was more than half of its overall income. Apple’s other devices, such as the Apple Watch, AirPods headphones, and iPad tablet, have all become multibillion-dollar industries because of the technology pioneered by the iPhone.
Moreover, it has contributed to Apple’s valuation increasing from $60.7 billion when the gadget was initially launched 15 years ago to its current level of almost $2.5 trillion. After passing oil tycoon Saudi Aramco, Microsoft, Alphabet (Google), Amazon, and electric car manufacturer Tesla, Apple is now the most valuable corporation in the world.
However, this year, the iPhone’s success will be measured by more than just increased earnings for Apple. It will also serve as a barometer for the economy as a whole, providing an indication of whether or not consumers are prepared to spend during a period when confidence in the economy is at a record low. In the wake of Snap’s layoffs last week, another Facebook competitor, many businesses, both big and small, have paused new hiring or begun laying off personnel.
Even if 5G is a major bore in the IT industry, it could be Apple’s salvation in the current economic climate. According to Wedbush Securities, around 240 million of the 1 billion iPhones in circulation worldwide have not been updated in the past 3.5 years and are therefore not compatible with 5G networks.
With cellphone carriers offering free subscription movie and TV services, owners of older iPhones will undoubtedly upgrade at some point. Wedbush analysts said in a message to investors earlier this summer, “The stickiness of the iPhone upgrade cycle is still being underestimated.” Compared to other industry leaders, this is still Apple’s defining feature.
When it comes to speed and reliability, 5G has basically delivered thus far, but that’s about it.
Meanwhile, carriers have persuaded people that 5G is essential by discontinuing support for earlier 3G networks. This has prompted some customers to upgrade and served as a subtle warning to those still using 4G that they, too, may be affected.
With the economy looking shaky, consumers need to reevaluate their impulse purchases of devices they might not be able to afford to upgrade for a while.
“If you’re going to buy a smartphone, you’re going to buy the finest you can at a specific price range,” said Maribel Lopez, president of Lopez Research and a veteran observer of the business. When food prices rise by 30% and petrol prices rise by 100%, people have to make tough decisions.
“No one,” she continued, “would buy a 4G phone today, unless you need a discount phone.”
Even with the global economic slump, all these patterns do not suggest that Apple’s iPhone will be a smashing success.
With the release of the iPhone 14, Apple is hard at work on the iOS 16 software upgrade, which will include features like new “widgets” to add information to the lock screen, undo-send in Mail, and increased security.
The always-on display, which would allow iPhones to show limited information on the screen even when it’d typically be turned off, and emergency satellite texting, which could come in handy if you’re stranded on a desert highway or in the middle of the ocean, are both rumored to be in the final stages of development.
