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What to expect from Apple iPhones 2019 – The Motley Fool

Appleis (NASDAQ: AAPL) The iPhone 2018 line will become one of the most turbulent product cycles in the company's history. According to Apple's revised guidance, iPhone revenues in the December quarter fell 15% to approximately $ 52.2 billion, which represents the worst growth in years. The maker of Mac experienced several rough quarters of falling iPhone revenues in 2016, and while the price increases boosted revenue growth in 2017 and most of 2018. The iPhone XR is not selling well, even when the administration continues to defend sales of units of that model

What does Apple have in store for this year?

iPhone XS and XS Max in gold

iPhone XS and XS Max are the flagships of 2018. Source of the image: Apple.

What to expect in the 2019 lineup

The Wall Street Journal (subscription required) reports that Apple has another trio of iPhones scheduled for this fall, including an LCD model to succeed the beleaguered iPhone XR. Despite the apparent difficulties of the XR, Apple is staying with an LCD screen because it would be a challenge to change the design at this point. In addition, it is unlikely that the LCD screen, which is much less expensive than OLED panels, is the cause of low sales. However, Apple is looking to completely switch to OLED displays in its 2020 line, according to the report.

Apparently corroborating other recent leaks, the star model is expected to have a triple rear camera. The other two models, including the LCD model, will have a double rear camera. The iPhone XR currently has a single rear camera. The rivals have been adding an increasing number of cameras, pressing Apple to do the same. the dailyThe sources say that Apple has been investigating the characteristics of the camera that are in those models, in particular the phones of Chinese manufacturers that have consumed their market share in the Middle Kingdom.

Apple is even thinking of eliminating some features, such as 3D Touch, which was not included in the XR, in an effort to reduce costs. What is less clear is whether Apple would use the cost savings to increase its margins or pass on savings to consumers in the form of lower prices.

On the other hand, Barclays also launched a research note today highlighting the expectation that the next iPhone will include support for the latest Wi-Fi standards, as well as an enhanced TrueDepth camera system that offers better Face ID performance. .

But how much will it cost?

Prices will be as important as the characteristics of iPhones 2019. Apple has now admitted that the updating activity is slowing down, even in developed markets, and it is painfully clear that high prices combined with feature updates are increasingly Incrementals are a recipe for poor sales. The challenge of falling back in prices would be how to effectively justify that to consumers, after constantly defending price increases.

While it is still very profitable, the strongest growth days of the iPhone segment could have ended. But now that Apple's stock trades below 13 times its profits, it's not as if the market is evaluating growth expectations.

Evan Niu, CFA owns shares of Apple. The Motley Fool owns shares and recommends Apple. The Motley Fool has the following options: long calls of $ 150 to Apple in January of 2020 and short calls to $ 155 of Apple in January of 2020. The Motley Fool has a policy of disclosure.

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