On Wednesday, pple will unveil its 14th generation of iconic iPhones at the company’s first ever in-person product launch.
Industry observers also expect to see new Apple Watches, AirPods and other upgraded versions of the hardware.
High tech advancements will be accompanied by increased interest in prices, with inflation nearing four-decade highs. Even before the pandemic when the economy was booming, people were balking at the substantial price tags for smartphones with upgrades that don’t win over owners of recent models.
Apple launched the second-generation iPhone SE in April 2020 at a time when the U.S. was suffering from a pandemic. The price tag for the iPhone SE is as low as $399. This represents a 40 percent discount on the iPhone 11, which had been the most expensive iPhone 11 ever.
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Now, with 9% inflation battering Americans’ household budgets, analysts wonder if consumers won’t wait a little longer to upgrade phones, or pass on the earphones that can cost as much as filling up their gas tanks each month.
“Pricing is a key watch-point in a tough macro which comprises inflationary pressures and pull back in consumer spending, but we believe it matters more for wearables which are considered more discretionary purchases relative to iPhone by consumers,” JPMorgan analysts wrote.
Erik Woodring from Morgan Stanley predicted that, in addition to its iPhone 14 series of smartphones, Apple would also release three new Apple watch models, as well as updates to Airpods mini, HomePod mini, or Apple TV.
JPMorgan analyst expects a significant screen update for the iPhone mini, a more rugged Apple Watch Pro and improved sound quality from the AirPods Pro.
The event will be streamed from Apple’s Cupertino, California headquarters starting at 10 a.m. local time.
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