AI: The 'Everything iPhone' gets spruced up

...Apple’s Christmas in September

Today is early Christmas for iPhone users everywhere, with Apple’s appropriately named ‘Wonderlust’ event kicking off September 12 at 10am PST. Apple unveils the latest version 15 of its iconic iPhone (with a EU-driven USB-C connector no less), and likely a spate of other Apple hardware and software products. Lots of guesses on what to expect. And a lot of the new upgraded software, including iOS 17 for Apple devices will be free for owners of Apple devices goes back a few years.

The NY Times provides some context:

“There’s a general rule about consumer electronics: The older a device becomes, the more competitors appear and prices fall. This was true for televisions, personal computers and portable music players.”

“It was supposed to happen with smartphones. But the iPhone has defied gravity.”

“On Tuesday, Apple will unveil the 17th iteration of its flagship product. Remarkably, at an age in which most consumer devices have lost some of their appeal to users, Apple has increased its share of smartphone sales over less expensive rivals.”

“Over the past five years, the iPhone has increased its percentage of total smartphones sold around the world while expanding its share of sales in four of the world’s largest regions: China, Japan, Europe and India.”

“In the United States, the iPhone’s largest market, the device now accounts for more than 50 percent of smartphones sold, up from 41 percent in 2018, according to Counterpoint Research, a technology firm. The gains have helped it claim about a fifth of the world’s smartphone sales, up from a low of 13 percent in 2019.”

There are over two billion Apple devices in user hands worldwide, with a generally connected ecosystem of operating systems from iOS, Mac, iPadOS, Apple Watch, and soon VisionPro OS next year. And as I argued in my “Apple iPhone is our ‘WeChat’ Everything App phone” piece in August:

“Apple is the leading contender for the “Everything App Phone”,. That’s what I think we should b calling this coveted holy grail opportunity, being chased by everyone from Elon Musk, to Meta, to Uber and beyond. And that’s before new AI driven capabilities being added to the Apple Machine Learning (ML) software and hardware driven ecosystem and Edge, in the months ahead.”

And Apple continues to expand at the AI margins in these early days of the AI Tech Wave.

But Apple does have some headwinds this year, with China topping the list, as The NY Times elaborates:

“In China, the second-most important country to Apple’s business, the iPhone has become the default choice for people who want a premium smartphone. Samsung was squeezed out of the market several years ago, and Huawei has been unable to make a phone with the latest wireless technology. The lack of competition has helped to make the iPhone the country’s best-selling smartphone in recent quarters.”

“But new challenges threaten Apple’s lead. Last month, Huawei unveiled a new premium smartphone, the Mate 60 Pro, its first to feature chips capable of running on 5G cellular networks. Beijing also directed employees of national government agencies not to use iPhones for work. Instead, they have been encouraged to use domestic smartphone brands, raising the possibility that nationalist momentum undercuts future iPhone sales.”

As I’ve recounted here often, China remains the issue where the US needs to ‘Thread the Needle’ between politics and economic realities. And Apple is caught dead-center in the cross-hairs of today’s geopolitics, amidst China’s relentless focus “to find a way”.

But today is a day for our Wonder to lust and wander. Stay tuned.

(NOTE: The discussions here are for information purposes only, and not meant as investment advice at any time. Thanks for joining us here)