Tim Cook, the CEO of Apple, told investors that customers are prepared to spend a lot of money to have the most excellent iPhone possible, suggesting that even more, opulent versions might be coming soon.
Additionally, Samsung unveils its newest unimpressive phones, and the corporation decides not to replace its departing industrial design leader.
Tim Cook, the CEO of Apple Inc., made a casual comment on an earnings call mainly on Christmas performance but may have significant implications for the company’s future.
Cook was responding to a question about the viability of the rising average selling price of the iPhone.
For example, a top-of-the-line model (the iPhone X with 256 GB of storage) that cost $1,150 in 2017 now sells for $1,600. (the iPhone 14 Pro Max with one terabyte).
The price rise is not an issue, he said. Customers may be convinced to spend more money.
- Cook said that the iPhone has become “integral” to people’s lives and that “I believe people are prepared to stretch to get the best they can buy in that area.”
- According to him, consumers now use gadgets to store financial information, monitor their health, operate intelligent home products, and make payments.
- Cook made a strong case for why even more upmarket iPhones would make sense, particularly if they have new capabilities, even if he would not say whether he expected future price rises.
Apple has spoken internally about elevating the top model of its iPhone series.
Additionally, it has already done more to set out its Pro versions from other iPhones, encouraging customers to spend more money.
Apple will use various materials, CPUs, and cameras to distinguish the product’s tiers further when the iPhone 15 is released later this year.
It involves adding a periscope lens to the Pro Max variant, providing better optical zoom.
- Apple’s intention to differentiate the Pro and Pro Max further has led to rumors that the corporation will choose to launch a new Ultra-tier brand.
- Apple previously gave that designation to the most advanced M1 processor and its stylish, high-end wristwatch.
- Apple might alternatively place a more expensive iPhone atop both Pro versions rather than dubbing the Pro Max “the Ultra.”
- To be completed in time for the iPhone’s release in 2024, the company has discussed doing just that internally.
- Price increases might result from it, but customers would need the incentive to upgrade.
It’s unclear at this time how that top-of-the-line device will vary, although it will likely come with upgraded cameras, a quicker CPU, and a more prominent display.
Additionally, there could be additional futuristic features, including the eventual removal of the charging connector.
Company Samsung Electronics
With its own Ultra phone, which comes with more cameras, a larger battery, a larger screen, pen support, more memory, and a unique design, Samsung Electronics Co. has already adopted this strategy.
Additionally, Samsung provides two different models of foldable phones, rapidly taking center stage in the company’s smartphone strategy.
iPhone that folds
Apple has already looked at creating a foldable iPhone, but one will not be available soon. The business is concentrating on more giant foldable gadgets, including laptop-sized ones.
- Apple would undoubtedly charge more for a foldable iPhone than it does for its existing models.
- A far more sophisticated chip, battery, and display technology would be necessary for such a gadget.
The Z Fold4 from Samsung is the priciest foldable and costs up to $2,160. Before Apple consumers can buy an “iPhone Fold,” it could take some time.
Cook’s remarks, though, suggest that many people will gladly spend the money.
Apple eliminates the position of head of industrial design after having trouble finding a long-term successor for Jony Ive.
When Jony Ive departed the firm in 2019, Evans Hankey, Apple’s chief of industrial design, stepped into that position.
- She only held the position for roughly three years, though, which forced Apple to rush to recruit a replacement.
- Indeed, Apple has now decided it will not attempt to replace her. Instead, Chief Operating Officer Jeff Williams will be in charge of the company’s staff of around 20 senior industrial designers.
- Given the recent departure of talent from Apple’s design team—about 15 designers from the Ive period have left—I’m not shocked that the firm ultimately decided to put off selecting a replacement.
- But it’s still remarkable how little long-term succession planning was before this. One of the most critical divisions at Apple is design.
It is concerning that no one has stepped forward to assume the helm.
Every other significant Apple division, including services, hardware engineering, silicon, and operations, has one or two executives capable of taking over for the current group head.
There could be someone in the design group with comparable skills, but it doesn’t seem Apple now employs such a person.
New Launches of Samsung and iPhone
In a significant iPhone year for Apple, Samsung releases several smartphone improvements.
The S23, S23+, and S23 Ultra are Samsung’s newest non-foldable devices, reflecting relatively few year-over-year gains.
The improvements center on minor battery improvements, some changes to the front camera, and an increase in the rear camera’s resolution from 108 to 200 megapixels.
- The curvature of all three versions also undergoes very modest modifications.
- These improvements aren’t all that spectacular compared to upgrading from an iPhone 12 to an iPhone 13.
- That is not all that interesting.
- Samsung is now more focused on its foldable portfolio, but when smartphone sales are already down, the firm wasted an opportunity to create additional hype.
- Additionally, Samsung may have a challenging time. After resolving its supply-chain issues, Apple can now fulfill orders for the iPhone 14 Pro.
- And the release of the iPhone 15 is pretty close.
Contrary to the S23 models, the iPhone 15 series will undergo significant alterations, including the Dynamic Island to the less expensive versions and a titanium frame on the Pro models.
This autumn, the firm is anticipated to debut the iPhone 15 series.
There are speculations regarding what may be in the new phones, even though not much is known about the new range.
- According to one report, all following iPhone models would incorporate USB-C connections for charging.
- In 2022, the European Union decided that beginning in 2024, USB-C would be the standard charging cable for all smartphones.
- Another speculation about the iPhone 15 is an increase in pricing for all smartphone models.
The current range of US pricing for the iPhone 14 variants is $829 to $1,599.
Check out all the iPhone 15 rumors, what Apple may do with iPhone 15 pricing, and which iPhone is ideal for you for more information on Apple.
Apple’s annual shareholder meeting is on March 10.
Cook and his deputies, including General Counsel Kate Adams, will take the virtual podium to answer a limited number of shareholders’ queries and provide business updates.
At these conferences, major news seldom emerges, but there will be shareholder votes on Apple’s board, CEO compensation, labor, and other issues.