Apple must continue to innovate the iPhone in order to stay successful, analysts have said ahead of the tech giant’s latest launch.
The firm will reveal its new generation of iPhone handsets on Tuesday evening.
But despite a slowdown in iPhone sales amid a rise in revenue in other parts of its business, industry experts have said the company must continue to push its phone if it wants to remain successful.
Peter Jarich, head of analyst firm GSMA Intelligence said: “The iPhone still represents Apple’s biggest revenue generator. But it’s now less than half of the company’s business, down from 56% in 2014.
“The upshot? Apple can’t rest on its laurels; its business success depends on it.”
The new iPhone handsets will reportedly feature a triple rear camera system for the first time and updated processors, but are otherwise expected to be similar to the current generation iPhone XS and XS Max.
In recent times the company’s services business – including Apple Music – have become increasingly lucrative.
The firm is also due to launch its own subscription-based video streaming service – Apple TV+ – this autumn, as well as a gaming service.
Both could be discussed during the live event alongside the new iPhone handsets.
The new devices will reportedly not support 5G, but Mr Jarich says this is unlikely to be an issue for Apple for the moment.
“A lack of 5G support in the new iPhone won’t surprise anyone, though it will still disappoint operators looking for 5G devices to help them drive traffic to new 5G networks.
“At the same time, new features that are expected – improved camera functionality, improved processor, upgrade to Wi-Fi 6 – may all seem incremental rather than revolutionary, particularly if the product line and form factor line-ups remain relatively constant.
“In reality, form factor – and pricing – diversity, combined with a compelling case for customers to upgrade, is an important strategy for keeping the iPhone relevant for a broad set of smartphone users, while keeping sales robust.
“And as services continue to grow as a revenue source for Apple, it’s increasingly important for Apple to get iPhones into the hands of consumers.”
A new Apple Watch is also expected to be announced at the live event, held in the Steve Jobs Theatre at the firm’s Apple Park campus.
- Press Association