Apple Expected to Unveil Next Generation of iPhones as Company Tries to Reverse Recent Sales Slump

A general view of iPhone 14 models in an Apple store at a mall in Beijing, China, 07 September 2023. (EPA)
A general view of iPhone 14 models in an Apple store at a mall in Beijing, China, 07 September 2023. (EPA)
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Apple Expected to Unveil Next Generation of iPhones as Company Tries to Reverse Recent Sales Slump

A general view of iPhone 14 models in an Apple store at a mall in Beijing, China, 07 September 2023. (EPA)
A general view of iPhone 14 models in an Apple store at a mall in Beijing, China, 07 September 2023. (EPA)

Apple is expected to take the wraps off its next iPhone on Tuesday during what has become an annual late summer rite aimed at giving more people more reasons to buy the technology trendsetter’s marquee product.

The showcase at Apple's Cupertino California, headquarters comes as the company is mired in a mild slump that has seen its sales drop from last year in three consecutive quarters — with management signaling another downturn is likely during the current quarter that will be capped with the release of its iPhone 15 lineup. The malaise is a key reason Apple's stock price has dipped by nearly 10% since mid-July, dropping the company's market value below the $3 trillion threshold it reached for the first time earlier this summer.

As has been case with Apple and other smartphone makers, the next model isn't expected to make any major leaps in technology. The array of iPhone 15 choices, likely to range from lower-priced basic models to more expensive premium versions, are expected to consist of mostly incremental advances to the device's chips, battery and cameras.

The basic iPhone 15 models also may be redesigned to include a shape-shifting cutout on the display screen that Apple calls its “Dynamic Island” for app notifications — a look that was introduced with last year's Pro and Pro Max devices.

If the rumor mill pans out, this year's iPhone 15 Pro and Pro Max may feature a periscope-style telephoto lens that will improve the quality of photos taken from far distances. The telephoto lens could boast a 6x optical zoom, which would still lag the 10x optical zoom on Samsung's premium Galaxy S22 Ultra, but would be a significant upgrade from the 3x optical zoom on the iPhone 14 Pro and Pro Max.

The improved camera is one of the reasons Apple is also expected to raise the prices of the Pro and Pro Max. The iPhone 14 Pro starts at $1,000 while the Pro Max starts at $1,100. Analysts think the iPhone 15 versions of those models may cost an additional $100 to $200, testing how much consumers are willing to pay for the devices at a time when post-pandemic inflation has been squeezing more household budgets.

One of the biggest anticipated changes that Apple is expected to announce is a new way to charge the iPhone 15 models and future generations. The company is expected to switch to the USB-C cable standard that is already widely used on many devices, including its Mac computers and many of its iPads.

Apple is being forced to start phasing out the Lightning port cables that it rolled out in 2012 with the release of the iPhone 5 because of a mandate that European regulators are imposing in 2024. It's unclear whether Apple will initially limit the switchover to USB-C ports to models made specifically for the European market or make the change worldwide.

If Apple decides it's time to move away from Lightning port cables throughout the world, the transition may not be too inconvenient for most consumers. That's because USB-C cables already are so widely used on a range of computers, smartphones and other devices that many people may already own them. The shift to USB-C cables may even be a popular move since that standard typically charges devices more quickly and also offers faster speeds for data transfers.

Besides its new iPhones, Apple also typically uses this annual showcase to unveil its next generation of smartwatches — a product that made its debut nearly a decade ago. The arrival of the new iPhones also sets the stage for the next version of the software that powers the device.

That operating system, iOS 17, will be available as a free download to previous generations later this month and will include new features such as the ability to read a transcription of a message being left on an unanswered call in real time with an option of deciding to talk to the person on the line before the voicemail is finished.



Huawei's Harmony Aims to End China's Reliance on Windows, Android

A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, February 17, 2021. (Reuters)
A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, February 17, 2021. (Reuters)
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Huawei's Harmony Aims to End China's Reliance on Windows, Android

A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, February 17, 2021. (Reuters)
A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, February 17, 2021. (Reuters)

Packed into a small room, a drone, bipedal robot, supermarket checkout and other devices showcase a vision of China's software future - one where an operating system developed by national champion Huawei has replaced Windows and Android.
The collection is at the Harmony Ecosystem Innovation Centre in the southern city of Shenzhen, a local government-owned entity that encourages authorities, companies and hardware makers to develop software using OpenHarmony, an open-source version of the operating system Huawei launched five years ago after US sanctions cut off support for Google's Android.
While Huawei's recent strong-selling smartphone launches have been closely watched for signs of advances in China's chip supply chain, the company has also quietly built up expertise in sectors crucial to Beijing's vision of technology self-sufficiency from operating systems to in-vehicle software, Reuters said.
President Xi Jinping last year told the Communist Party's elite politburo that China must wage a difficult battle to localize operating systems and other technology "as soon as possible" as the US cracks down on exports of advanced chips and other components.
OpenHarmony is now being widely promoted within China as a "national operating system" amid concerns that other major companies could be severed from the Microsoft Windows and Android products upon which many systems rely.
"This strategic move will likely erode the market share of Western operating systems like Android and Windows in China, as local products gain traction," said Sunny Cheung, an associate fellow at the Jamestown Foundation, a US defense policy group.
In the first quarter of 2024, Huawei's HarmonyOS, the company's in-house version of the operating system, surpassed Apple's iOS to become the second best-selling mobile operating system in China behind Android, research firm Counterpoint said. It has not been launched on smartphones outside China.
Huawei no longer controls OpenHarmony, having gifted its source code to a non-profit called the OpenAtom Foundation in 2020 and 2021, according to an internal memo and other releases.
But both the innovation center and government documents often refer to OpenHarmony and HarmonyOS interchangeably as part of a broader Harmony ecosystem. The growth of HarmonyOS, expected to be rolled out in a PC version this year or next, will spur adoption of OpenHarmony, analysts said.
"Harmony has created a powerful foundational operating system for the future of China's devices," said Richard Yu, the chairman of Huawei's consumer business group, at the opening of a developer conference last week.
Huawei did not respond to a request for further comment.
SELF-SUFFICIENCY
Huawei first unveiled Harmony in August 2019, three months after Washington placed it under trade restrictions over alleged security concerns. Huawei denies its equipment poses a risk.
Since then, China has stepped up its self-sufficiency efforts, cutting itself off from the main code sharing hub Github and championing a local version, Gitee.
China banned the use of Windows on government computers in 2014 and they now use mostly Linux-based operating systems.
Microsoft earns only about 1.5% of its revenue from China, its president said this month.
Originally built on an open source Android system, this year Huawei launched its first "pure" version of HarmonyOS that no longer supports Android-based apps, in a move that further bifurcates China's app ecosystem from the rest of the world.
A report from the Jamestown Foundation last month said OpenHarmony's owner OpenAtom appeared to be coordinating efforts among Chinese firms to develop a viable alternative to US technologies, including for defense applications such as satellites.
Beijing-based OpenAtom did not respond to a request for comment.
OPEN SOURCE
OpenHarmony was the fastest-growing open-source operating system for smart devices last year, with more than 70 organizations contributing to it and more than 460 hardware and software products built across finance, education, aerospace and industry, Huawei said in its 2023 annual report.
The aim of making it open source is to replicate Android's success in removing licensing costs for users and to give companies a customisable springboard for their own products, said Charlie Cheng, deputy manager of the Harmony Ecosystem Innovation Centre, when Reuters visited.
"Harmony will definitely grow into a mainstream operating system, and will give the world a new choice of operating system besides iOS and Android," he said. "China is learning from the West."
Google, Apple and Microsoft did not respond to requests for comment.
The Harmony ecosystem has seen strong support from Huawei's home city of Shenzhen, a city historically used as a trial site for policies later adopted across China.
Along with a Harmony center that opened in the southwestern city of Chengdu, 10 more are expected in a further 10 cities, according to a Shenzhen center presentation.
Key OpenHarmony developers include Shenzhen Kaihong Digital, headed by Wang Chenglu, a former Huawei employee known as Harmony's "godfather", and Chinasoft. Both have worked on infrastructure software, at Tianjin Port and for mines in China's top coal-producing province Shaanxi.
While OpenHarmony is largely confined to China, Brussels-based open-source group the Eclipse Foundation said it was using it to develop a system called Oniro for use in mobile phones and internet-of-things devices.
China's previous efforts to build major open-source projects have struggled to gain traction among developers, but Huawei's growing smartphone market share and extra work to develop a broader ecosystem gives Harmony an advantage, analysts said.
More than 900 million devices, including smartphones, watches and car systems are running on HarmonyOS, while 2.4 million developers were coding in the ecosystem, Huawei's Yu said this month.
"OpenHarmony will need more time and iterations so that these developers will be more confident to work with OpenHarmony," said Emma Xu, an analyst with research firm Canalys. "But the reputation, behavior and confidence that HarmonyOS has achieved will definitely bring a positive effect."