iPhone 7 may get a lukewarm response, but will eventually pick momentum: Analysts

Add-ons like the AirPods that will be sold separately are also believed to add to the revenue.


Finally, Apple has launched the iPhone 7 and iPhone 7  Plus. It was accompanied by the new Apple Watch Series 2. The event was one 'courageous' affair, or that's what we were made to believe. In terms of specs,  the phones maintain the same display and resolution as the predecessors, the Plus model gets a 12MP dual camera set, there's better battery life and the A10 chipset that can work wonders.

Most of these features didn't come in as a surprise, owing to the numerous leaks and rumours, and they aren't ground-breaking either. Most of them, like waterproof and dustproof, dual camera and so on, are what we've seen in many Android devices. Here are all the features Apple's iPhone borrows from Android smartphones.

Anshul Gupta, the Research Director at Gartner tells us, " The features announced by Apple are seen in existing devices, so there is nothing ground-breaking or new. These are time and tested features that consumers appreciated. So, though there is nothing exceptional, the features are aligned with what customers expect. That should help Apple, but if you ask me will it not necessarily boost the demand. Nevertheless, it is nice to see features like the dual camera setup, and people have responded positively to it."

Julie Ask, VP and principal analyst at Forrester believes that the feature set is good and even though the response may be lukewarm initially, it will start picking momentum once people start getting their hands on the devices. “Consumers underestimate the engineering feats that the iPhone 7 brings, like the audio, camera, processing power, etc. in such a small package. Once they have it in their hands, they will fall in love with it. While it’s hard to market performance and speed, consumers need to experience it firsthand to get it. We may see a lukewarm response, but the iPhone 7 will pick up momentum once consumers have them in their possession, Ask said.

Ask adds that she is particularly thrilled for the waterproof capability of the Apple watch. “This is one of the features that we’ve been missing from these watches. One in 5 consumers have wearables today and Forrester data expects 1 in 3 to have wearables in 4-5 years. The one thing I think the Apple Watch is waiting on is that killer app, but maybe Pokémon becomes that killer app that makes this new consumer group (9-12 year olds) want this watch," Ask said.

Some believe that the device will help Apple maintain the leadership position.

“The new devices announced at today’s Apple event embed enough innovative features to enable Apple to maintain its leadership in the maturing smartphone and emerging smartwatch markets,” Thomas Husson, VP and principal analyst at Forrester said.

Husson further believes that partnering brands like Nike, Nintendo and many others add value and appeal to consumers on top of integrated lifestyle experiences from Apple. So, even though no disruptive category of product was announced, mobile still stays the core enabler of new connected experiences for the foreseeable future. "Let’s not forget the iPhone is not even 10 years old and will only enter its teenage phase next year," Husson added.

So, the device will be turning 10 next year. That's one reason why many reports point out slow growth rate this year as many will be willing to wait for the alleged iPhone8 that is expected to be launched next year with a overhauled design and other supposedly jaw-dropping features.

Talking about this further, Gupta adds, "Too early to talk about what exactly the company may launch next year. But, the expectations will be high due to the iPhone anniversary year. However, there is a huge base of existing iPhone 6 users that has been waiting for two years and ready for an upgrade."

Frank Gillett, VP and principal analyst at Forrester, adds, “Though today’s Apple event has focused on hardware, the software and services improvements are notable too. Support for Pokemon Go, updated iWork with live collaboration, and the promise of exclusive tunes on Apple Music will motivate people to stay in the Apple ecosystems, which will compel them to upgrade the iPhone eventually, if not immediately.”

Add-ons like the AirPods that will be sold separately are also believed to add to the revenue.


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