Another iPhone is coming! Is that even still “a thing?” It’s not with investors – as the novelty has more than worn off.
Shares of Apple have fallen 6.6% in the 30 days prior to Wednesday’s widely anticipated announcement of the iPhone 6S. That’s a highly unusual move for the stock that has raced higher by an average of nearly 5% in the 30 days prior to the previous eight models. It’s the first time Apple’s stock has fallen leading up to an iPhone launch since the original iPhone in 2007 – ending what had been a dependable source of returns for investors.
Investors are counting on Apple to keep the excitement going over its aging iPhone smartphone line, which was first introduced more than eight years ago. The company gets two-thirds of its revenue from this single product line, 74% of its gross profit from the iPhone and this one product accounts for 61% of its stock price, says Trefis.com. Other new products including the iPad, Apple Watch and Apple Music have failed to meaningfully diversify the company’s offerings – especially profitability.
It used to be that we’d hear in advance of the next-generation of hardware to launch; then we started hearing about it just before the launch of whatever the current-gen was going to be (hearing about the iPhone 6 before the iPhone 5S was out the gate, for example). Now it’s even more advanced; we’ve been hearing about the iPhone 6S for months, but also about the follow-on device which will launch in late 2016 as the iPhone 7, and there’s even talk of the iPhone 8 in 2018! There is pretty much nowhere now for phone makers to run and hide their top secret plans to prevent them spilling fully into the public space many months in advance of a device’s arrival, and it’s as true for Apple and its iPhones as anyone else.
The iPhone 5c, because it was largely based on the iPhone 5, save for the inclusion of LTE and improved battery life, had a significantly lower BOM (bill of materials) cost than Apple’s iPhone 5. Plastic is cheaper, easy to use, and the numbers Apple shifted made for excellent profit margins. In this respect the iPhone 5c was the iPhone 5 repackaged and sold onto consumers, with a few additional bells and whistles, as a new phone.
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The iPhone 6s release date prep is in full swing at major carriers in the U.S. just a few days before the Apple event where we expect to see the iPhone 6s and iPhone 6s Plus and other Apple devices.
It’s no shock that carriers are getting ready as iPhone 6s pre-orders may arrive as soon as Friday September 11th. We are seeing the early signs of this at carriers, on eBay and at device trade-in locations.
The Fall 2015 Apple event takes place tomorrow September 9th and according to rumors will include details about the iPhone 6s, Apple TV 4, new iPads and iOS 9.
All signs point to the iPhone 6s release date on September 18th and there is a very high likelihood that you can start the purchase process this week with iPhone 6s pre-orders online.