Christopher Landers, September 10, 2016
Gee, new color bands, water resistance, and 1/10 of a millimeter thinner for iPhone 7, the suspense is killing me. This is the first time the Apple stock has been flattening into a major product lunch. Though, the 10 Apple major product launches had a muted performance, -0.06%, on the day of the launch, but with a +1.39% the day after. Then again, Apple was a $12 stock the day before the first product launch.
The announced iPhone7 improvements are part of the company’s long-term strategic effort to move the users into the Apple’s “Eco-System,” which integrates all Apple software into all Apple hardware. While taking away the headphone jack does not mean people cannot use their headphones, it will help iPhone waterproofing and shift battery life to other new functionalities. By the way, Apple’s largest competitor, “Android,” does not have an Eco-System.
iPhone7 added functions, including wireless charging (Samsung has it), water resistance (Samsung has it), stereo speakers, Pokémon Go coming on a greatly improved Apple Watch screen with updated processers and a GPS, enhanced camera with two lenses, larger hard drive, albeit welcoming, none of them are game changers. It appears that the main forces of the Apple Special Event is to pump upcoming apps for their upcoming IPhone 7 and Apple Watch 2.
Critics asked “Is the iPhone 7 the iPhone 6?”
Chris Landers, security analyst for the Roland George Investments Program at Stetson University said, “Comparing iPhone 7 to iPhone 6 is like comparing apples to apples.”
On the bright side, Apple’s Apple Watch 2, partnered with Nike, quickly sent Fitbit’s stock tumbling down 2% before the day end.
Apple’s fans called the iPhone 7 launch, “A Day of Liberation,” that “we don’t need wires anymore for iPhones.”
In the short run, removing the headphone jack and power button may prove unpopular, especially for people who don’t like Bluetooth, it is considered part of a coordinated move to educate users to accept changes which improve the efficiency and functionality of the entire iPhone experience. Remember, how much we complained about there being only one USB drive left in MacBook and the screen size of the 6s Plus was too large? Now we can’t live without them.
Whether the iPhone7 changes will translate into Q3 revenue is still up in the air. As more than 235 million two-year old iPhones are waiting to upgrade, to them, any improvements of iPhone 7 will be a plus. That being said, the same people are also waiting for the 10-Year Anniversary iPhone which is scheduled to arrive in 2017. Hopefully, it will be significantly differentiated with an OLED display, bendability, and several brand new designs.