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That’s why Apple’s iPhone 13 should be so successful




With the introduction of Apple’s (NASDAQ: AAPL) iPhone 13, the first reaction of the smartphone giant to the latest and greatest devices is less optimistic. Apple has added the usual series of upgrades to its latest iPhone model, with a better screen, faster processor, better camera system, larger battery, and more. However, the lack of “breakthrough” features has spawned some memes on the Internet, some expressing disappointment with the lack of substantial innovation.

However, I think the iPhone 13 could be more successful than the iPhone 12, which was a big hit last year, thanks to aggressive pricing and the addition of 5G.

Let’s see why this happens.

Image source: Getty Images.

iPhone 13 can continue the great sales momentum of iPhone 12

The iPhone 12 helped Apple become the dominant player in the 5G smartphone market. Strategy Analytics estimates that Apple accounts for 29% of the 5G smartphone market thanks to the iPhone 12. The new iPhone model is expected to boost its market share by up to 40% as more consumers are expected to switch to Apple’s 5G products.

This is not surprising, as less than 1% of Apple’s huge installation base of about 1.1 billion iPhones have 5G-enabled devices, at least according to third-party research. With more than 100 million iPhone 12s in less than seven months after launch, the iPhone 13 is likely to appeal to customers who have previously postponed upgrades to 5G devices, so it can take over that momentum.

Apple has increased the storage of its base iPhone 13 model to 128GB (gigabytes). It’s currently $ 699 for the mini version and $ 799 for the 6.1-inch version, completely removing the 64GB option. That’s $ 100 higher than the price of the iPhone 12’s base model, but the new price is pretty much in line with industry standards. IDC estimates that the average selling price for 5G smartphones is $ 634.

Introducing upgrades such as more 5G wireless bands for better connectivity, Apple’s claim that the iPhone 13 model can last 1.5 to 2.5 hours longer than the iPhone 12, and why not jumping on the 5G band wagon It’s easy to see if you jumped. Take the plunge this time. In addition, Apple points out that increasing the number of 5G bands on the iPhone 13 will help double 5G support for more than 200 carriers across 60 countries.

All of this shows that the iPhone 13 is ready to attract more 5G users, given the improvements Apple has brought to the table. While this year’s device may not have any spectacular changes, the huge installation base of users in the upgrade window could continue the remarkable sales growth driven by the iPhone 12.

Apple’s 5G advantage will hit the arm

Daniel Ives, an analyst at Wedbush Securities, estimates that there are 250 million iPhone users using devices that are at least three years old. We’ve also seen earlier that the number of customers who don’t have a 5G iPhone is even higher.

As a result, Credit Suisse estimates that it makes sense to understand why Apple’s sales are expected to improve in 2022. Investment banks expect Apple to move 237 million units next year, compared to an estimated 234 million units in 2021. By 2023, iPhone shipments are expected to jump to 249 million units.

More importantly, according to Ericsson, Apple’s shipments in the 5G era are expected to reach 3.36 billion in 2026, from an estimated 569 million global 5G mobile subscriptions this year. Growth is likely to continue over the next two years. This massive growth is driven by the rollout of 5G networks in more markets in Latin America, the Middle East, Europe, and North America.

Therefore, if Apple continues to hold a strong 5G market share for budget-friendly devices that can appeal to a larger audience in its huge install base and price-sensitive market, it will be great for 5G smartphones in the long run. You can continue to win. The iPhone 13 plays an important role in this, as it facilitates upgrades and packed improvements can attract more users to the Apple ecosystem. This is a sure reason why investors need to continue to hold this 5G stake. This is because it has a new and reliable growth driver.

This article represents the opinion of a writer who may disagree with the official recommended position of the Motley Fool Premium Advisory Service. It was miscellaneous! Asking investment treatises (even our own) helps us all think critically about investment and make decisions that help us become smarter, happier, and richer. Useful.




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