The three major U.S. stock indexes rose collectively overnight, with the Nasdaq gaining more than 2%. At the same time, Apple’s latest press conference did not inject a “stimulant” into the company’s stock price. Apple’s stock price rose by 0.93%, ranking last among the five “FAAMG” technology stocks.
The latest launch shows that the tech giant is focusing on safety features for the iPhone 14 lineup and its latest smartwatches, adding sensors that can detect car crashes and sound alerts. The new smartphones will get satellite connections to send emergency messages for use in areas not reached by cell towers.
TechCrunch+ editor-in-chief Alex William said: “The problem is that investors don’t seem to care too much about what Apple announces. The company keeps launching new products and its stock price doesn’t seem to have much reaction. The launch lacks anything really shocking. , consistent with Apple’s past stance on product updates.”
Many analysts had expected Apple to raise the price of some iPhones, but the company’s base and high-end models start at the same price as a year ago.
Demand for the iPhone 12 and iPhone 13 series has helped Apple record record profits and sales over the past two years. iPhone revenue rose 39% in fiscal 2021 and is expected to grow another 6.7% to a record $205 billion for the current fiscal year, which ends at the end of this month.
Some analysts had predicted that Apple would raise the price of the iPhone 14 due to mounting cost pressures. “It’s impressive that Apple maintained year-over-year prices on its new iPhone 14 phones in the U.S.,” said Ben Wood, principal analyst at CCS Insight. “We had expected inflation, production and zero Rising component costs, along with other expenses such as higher shipping costs, will cause Apple to increase retail pricing.”
“The iPhone’s impressive sales performance so far this year is the biggest reason the company has largely weathered the recession,” said Gene Munster, managing partner at Loup Ventures. In the face of stressed consumers this holiday season, maintaining momentum in this segment will be a top priority for investors at launch.”
Smartphone shipments across the industry fell nearly 9% year-over-year in the past quarter, according to research firm International Data Corp., but Apple has not been affected. The bright spot in the smartphone market in the first half of the year was smartphones priced above $900, according to Counterpoint Research.
The biggest change at the launch was the higher-priced, higher-end iPhone Pro models that helped Apple increase revenue. Apple released 6.1-inch and 6.7-inch Pro versions, and added a 6.7-inch iPhone 14 plus to the base iPhone 14 with a 6.1-inch display.
Notably, Globalstar confirmed in a regulatory filing on Wednesday that it will use spectrum licenses it already holds to offer Apple’s new services. The company holds an international license for space-to-ground signaling over 11.5 MHz of wireless spectrum.
Smartphones have long used the existing satellite network of the U.S. Global Positioning System (GPS) for navigation, but technical limitations often prevent consumer-grade devices from accessing communications networks in space. The energy required to send a strong signal into the sky has limited the market, and new constellations of satellites orbiting the Earth have put the technology within reach, although smartphones still need microchips and antennas that can reach them. Apple said it spent years working on the technology, which uses an app to tell users where to point their devices in the sky.
With a one-stop source for regulatory clearance, Apple could finally offer satellite services outside of North America. Other companies seeking satellite phone service may need to obtain separate approvals in each country in which they plan to offer service.