Less than a year after introducing its artificial intelligence capabilities, Apple is bringing the facility to its most affordable iPhone.
On Wednesday, the company unveiled an iPhone, which would cost $ 599 and will feature AI system calling APLE Intelligence. This device brings AI characteristics as the company’s lowest price iPhone model in the notification summary and English as it prepares to expand the features in other languages in the coming months, including Chinese, Portuguese and Local English for India is included.
The new phone, called Apple iPhone 16E, does not have the facility of home button or touch ID, which has been phased. Instead, the phone is unlocked with the facial identification system called face ID which has been available on most iPhones since 2017.
IPhone 16E is the first update of the company’s lowest priced smartphone line since 16E 2022, which is changing The company’s iPhone se. Cheap phones have helped Apple bring their signature product into the pockets of price-sensitive customers, which next time they buy the phone, often trade for more expensive models.
Apple is introducing a new iPhone at a significant turn. The company’s iPhone business has been in a recession in 2022 with a sales of $ 205.5 billion to 2 percent from its peak. Apple CEO Tim Cook has chased some iPhone conflicts for limited availability of Apple Intelligence, which was announced, months before the announcement was made, and the company’s newest models in English speaking markets like the United States. But only is introduced. In a call with analysts last month, Mr. Cook said the new AI of the company sold iPhone in the markets where it was available.
But the surveys found that AI is not a major reason that people are buying new phones, Jeff Fieldhak, a market research firm said the research director of Counterpoint Research. He said, “People are buying phones for the reasons that are always: the battery is not recharging or the phone is aging and not working,” he said.
Apple’s business also benefits from increasing the price of its introductory model. The iPhone 16E is 40 percent more expensive than the final iPhone SE, priced at $ 429. Increased means that Apple stands to assemble $ 170 more on each of the lowest priced iPhones. This will increase the total sales at a time when the number of phones selling it has been relatively stable, over 230 million phones a year.
The high price comes after President Trump applies 10 percent tariff on all imports from China. Apple creates most of its iPhones in China, but its decision to raise prices on its lowest price iPhone is probably unrelated, a stock research firm, Arete Research partner Richard Kremer said, a stock research firm said.
“These decisions are made before taking action,” said Mr. Kreer. “This is the beginning of apple lifting prices in the range at a time when the increase in volume is very good.”
It is important to expand the availability of Apple Intelligence for the company’s efforts to remove rivals and expand sales abroad. According to Counterpoint Research, the company’s second most important market, the company’s share in the company’s smartphone sales fell by 2.4 percent points to 15.5 percent last year, as rivals like Huawei received land.
In India, one of the world’s fastest growing smartphone markets, the iPhone 15 was the best -selling smartphone in the last three months of the previous year, said Counterpoint. The popularity of the device helped Apple to increase its market share in India by up to 11 percent.
Along with the iPhone 16E, Apple is offering its first custom-designed modem chip called C1. The chip provides 5G connectivity and replaces the modem chips provided by Qualcomm. Apple is developing a chip from 2019, when he prosecuted Qualcomm on Chipmaker’s license fee and bought Intel’s modem business.
Ben Bajreen, Chief Executive Officer of Creative Strategies, a tech research firm, said the new modem chip would not have all the features of Qualcomm’s modem, but would allow Apple to test the component before including it in the future iPhone release. Finally, he said, Apple’s custom modem will improve the battery performance of iPhones and bring wireless connectivity to other Apple products.
“Is it going to come in an iPad?” Is it going to come in a Mac? How far can they take it? Shri Bajreen said.
Apple introduced the iPhone 16E with great pomp than normal. The company posted a brief, 13 -minute film on its website, in which Mr. Cook described the new phone. When it introduced the iPhone SE in 2022, she held an hour -long program at her headquarters in Cupertino, California.
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