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.
The entry-level version of the new iPhone will remain at its small 16GB storage size, according to reports.
Many had hoped that the cheapest handset would see its internal storage upgraded to 32GB, to make space for the bigger files and increased amounts of media that people store on their device, and to respond to complaints about them being too easy to fill up.
But Apple appears to be focusing more on encouraging users to store data on their servers, in the cloud, rather than using the iPhone’s storage.
News of scary new iPhone malware dubbed “Key Raider” is trending online, but there’s a caveat — it only hits phones that are jailbroken.
“The average iPhone user is not affected by this,” said Tyler Reguly, manager of the vulnerability and exposure research team at Tripwire, a Portland, Ore.-based security company.
Jail breaking refers to removed the operating system hardware restrictions on an Apple device such as an iPhone, iPad or iPod. It’s done to allow downloads of non-Apple approved apps.