Apple unveils iPhone 14 with satellite SOS, Ultra Watch for outdoors (updated)
07/09/2022 20:42
(Updates Globalstar stock move)
By Stephen Nellis
Sept 7 (Reuters) - Apple Inc AAPL.O introduced new iPhone
14 models capable of using satellites to send emergency messages
and an adventure-focused Ultra Watch for sports like diving and
triathlons.
The outdoor-focused products will test whether Apple's
relatively affluent customer base will keep spending in the face
of rising inflation.
Prices of the high-end iPhone 14s are the same as last
year's iPhone 13 models. But Apple dropped its cheapest option,
the iPhone mini, meaning the cheapest model now costs $100 more
than last year.
The iPhone 14 will start at $799 and the iPhone Plus at $899
and be available for preorder starting Sept. 9. The iPhone Pro
will cost $999 and the iPhone Pro Max $1,099 and be available
Sept. 16. urn:newsml:reuters.com:*:nL4N30D3L8
"It's interesting that they decided to essentially maintain
pricing despite inflationary pressure," said D.A. Davidson
analyst Tom Forte. "The decision or the strategy is Apple
believes that it can sustain margins by discontinuing a
lower-priced device in the lineup."
Apple said its satellite SOS will work with emergency
responders. It also said that in some situations, users will be
able to use its FindMy app to share their location via satellite
when they have no other connectivity.
Shares in Globalstar Inc GSAT.A jumped 20% on Wednesday
after the satellite services firm announced it will be the
satellite operator for Apple's emergency SOS service.
Apple will pay for 95% of the approved capital expenditure
for the new satellites that would be needed to support the
service, but Globalstar said it will still need to raise
additional debt to construct and deploy the satellites.
urn:newsml:reuters.com:*:nL4N30E3KU
The stock had gained almost 70% from mid-June to Tuesday's
close, following speculation of working with Apple.
Other companies are working on similar functions. SpaceX
founder Elon Musk said last month it is working with T-Mobile
TMUS.O to use its Starlink satellites to connect phones
directly to the internet.
Apple's iPhone 14 Plus model will have a larger screen like
Apple's iPhone Pro models but an A15 processor chip like the
previous iPhone 13.
The Cupertino, California-based company also showed a trio
of new Apple Watches, including a new Watch Ultra model aimed at
extreme sports and diving and designed to challenge sportswatch
specialists such as Garmin GRMN.BN and Polar.
"Apple is competing for a consumer segment that already has
high loyalty towards their existing products and vendors, and it
will need to prove itself over time," said Runar Bjorhovde, an
analyst at Canalys.
The Ultra has a bigger battery to last through events like
triathlons and better waterproofing and temperature resistance
to operate in outdoor environments, as well as better GPS
tracking for sports.
The new Watches include an upgraded budget model called the
SE and a Series 8 Watch with crash detection and low-power mode
for 36 hours of battery life.
The Series 8 with cellular will start at $499 and the SE
will start at $299 with cellular. The Ultra, which includes
cellular in its base model, will start at $799 and be available
Sept. 23.
Apple said the new Series 8 watch has a temperature sensor
that will work in conjunction with its previously released cycle
tracking app to retroactively detect ovulation. The company
emphasized the privacy approach of its cycle tracking. Privacy
and reproductive health data has become a focus for tech
companies in the wake of a U.S. Supreme Court decision that
ended a constitutional right to abortion in the United States.
Apple said it does not have the key to decrypt health data
such as cycle tracking.
Apple also touted that its second-generation AirPods Pro
will double the amount of noise cancellation over the original
version.
But while accessories like the Apple Watch have driven
incremental sales from Apple's existing user base, the iPhone
remains the bedrock of its business with 52.4% of sales in its
most recent fiscal year.
Apple's stock was up 0.8% after the presentation, lagging
the S&P 500's gain of 1.8% for the session.
Apple did not give any hints or a preview of its
mixed-reality headset on Wednesday. The device is expected to
have cameras that pass-through view of the outside world to the
wearer while overlaying digital objects on the physical world.
Analysts do not expect the device to go on sale until next year
at the earliest.
A rival headset called Project Cambria is in the works from
Meta Platforms Inc META.O , which is spending billions of
dollars on the project.
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Apple picks Globalstar for satellite service on iPhone 14 series
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FACTBOX-Apple launches iPhone 14 with emergency satellite
messaging, adventure watch urn:newsml:reuters.com:*:nL4N30D3L8
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(Reporting by Stephen Nellis in San Francisco; Additional
reporting by Nivedita Balu in Bengaluru; Editing by Peter
Henderson and Lisa Shumaker)
((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))