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Did the new iPhone fail to meet expectations?

 Did the new iPhone fail to meet expectations?

On October 13, the Apple technology company introduced a new iPhone 12 model to users.

Apple has taken in the past a sketchy, very simplistic approach to its product line. Every year, one new iPhone model was released, the cost of the previous one was reduced and the older ones were completely removed from production. Recently, the company has started to practice a different scheme. The previous iPhone 11 was presented with three options. By this time, Apple has prepared four new versions: iPhone 12 ProMax, iPhone 12 Pro, iPhone 12 and for the first time iPhone 12 Mini. Each of these models has its own cost. This approach is quite reasonable because the same size of the smartphone does not suit everyone. It is because not every user needs a huge screen or a professional camera and is ready to pay $1000 for the device. Also, for connecting to the 5G network because this technology is still rarely found outside of large cities. Now the consumer can choose what they really need from the presented line.

There are no additional accessories included with the iPhone 12 as with the Apple Watch. When purchasing a new model, users will not receive a power adapter, earpods with a lightning connector and a headphone adapter. Along with the smartphone, customers are offered instructions and a USB-C to lightning cable. It is obvious that in this way the company saves on packaging materials.

At first glance, the iPhone 12 has almost no differences from its predecessor. The front part is also equipped with a large recess on top, like the iPhone 11. The Front camera on the display ledge was replaced by light and proximity sensors and Face ID.

The iPhone 12 has three different screen sizes: mini version features of a 5.4 inch screen, iPhone 12 Pro has a screen diagonal of 6.1 inch, the iPhone Pro Max version is 6.7 inches. The new model received from its creators an OLED screen with twice the resolution. Moreover, the screen is protected by a special ceramic coating which was developed by Apple together with the glass specialist Corning. Now the composite glass screen is four times more resistant to falling than that of previous iPhone models.

The new model also features the A14 Bionic chip, which promises to consume less power than the previous A13 from the iPhone 11. There are no differences from the previous model in the processor structure and graphics block.

The iPhone 12 uses a separate neural Engine processor on the A14 Bionic, which is able to perform many small calculations and helps the processor and graphics unit, for example, in processing photos.

The quality of the camera is also important in our time, which is much better in all four new iPhone 12 models than in their predecessors.

The advantage is the ability to record video in Dolby Vision HDR, which was previously only available with expensive cameras. You can also edit and send videos to your iPhone, which until now was only available on expensive computers.

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 Did the new iPhone fail to meet expectations?

The 5G technology is also integrated into the new iPhone. For Apple CEO Tim Cook, this was extremely important and he presented support for the cellular standard in person and in front of the devices themselves. Each of the four iPhone 12 models is focused on 5G technology. In General, 5G chips on the market are much more expensive than their predecessors. Despite this, the average price of four phones with different memory configurations is 6% lower than on previous iPhone models. Apparently, Apple decided not to pass the costs on to the buyer. The bet on 5G technology is quite justified: it provides significantly faster data transfer speeds for smartphones, which is important both for uploading data and for downloading. The delays are low, which is necessary for game streaming services. Due to 5G, Apple also promises to increase power consumption in the new model.

It is expected that lower prices for phones with 5G technology, the ability to charge wirelessly, as well as a new protective glass will increase sales.

However, some of the characteristics expected in the new model were not implemented in it. For example, the promotion display with a 120 Hz refresh rate is not available on the iPhone 12. This technology was known to users of the iPad Pro and many Android smartphone models. Thus, a high refresh rate and smoother movement on the screen is not typical for the iPhone 12.

There are also a lot of questions about most of the extended functionality of the iPhone 12, which at the moment is unlikely to be useful to American customers due to the slow deployment of 5G networks.

Apple's earnings are still a concern for investors, as the company's shares were under pressure last year due to lower gross margins. This time, too, was no exception for wall street. On Tuesday, Apple shares fell more than 2% following the presentation of the new model and then stabilized in the premarket. The subdued cost of the four new iPhone 12 models has raised concerns that the company's gross margins will start to decline. It is hoped that the iPhone 12 will still be quite popular with buyers.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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