The speculation is finally over. Apple Inc. (NASDAQ:$AAPL) has officially sent out the media invites for its annual fall product event on Sept. 12th in Cupertino. The event will almost definitely follow its regular iPhone product cycle, unveiling its launch of the iPhone 8. Additional surprises will include a new Apple Watch and Apple TV set-top box. Here, we look at 8 reasons why the release of the iPhone 8 is more important than that of its predecessors.
The iPhone design has not changed for 3 years
Finally, the iPhone 8 will see major update in its form factor, something its predecessors all lacked. The last time there was an update to iPhone’s exterior design was the launch of the iPhone 6 and 6 Plus in September 2014.
Apple Stock has been on a tear
As of today, Apple shares are up 42% year to date and almost 10% in the last month alone. Its price-to-earnings ratio, on the other hand also climbed from around 14 at the beginning of the year to 19. If those numbers aren’t a testament to the anticipation of the iPhone 8, nothing is.
The iPhone is the reigning product segment of Apple
Even though the company reps a diverse line of products that will undoubtedly continue to expand over the next decade, the iPhone represents a significant 63% of Apple’s total revenue. All the more pressure for the iPhone 8.
The iPhone is also the most profitable segment of Apple
The iPhone segment can either make or break Apple’s financial results. While Apple does not break down operating profits by product, internal management and analysts estimate that iPhone’s share of the company’s operating profits likely exceeds its share of revenue.
Tim Cook’s comeback
While the Apple Watch was developed under new CEO Tim Cook’s leadership, the pioneering Apple designs in its iMac, iPhone, and iPad were created by Steve Jobs. If the iPhone 8 lives up to its design and feature-rich technology expectations, the new device could revive Apple and Tim Cook’s reputation for industry-leading innovation.
Investors are weary whether iPhone has peaked
iPhone sales growth has returned at a slow rate. In the most recent quarter, iPhone revenue was up a mere 3.3% year over year. Compared to just a few years ago, this number is gloom. Will iPhone 8 reinvigorate sales growth?
iPhone pushes other Apple products
Otherwise termed as a “halo” product, the iPhone is many users’ gateway device to a carefully integrated ecosystem of hardware, software, and services. If impressed by the iPhone, customers will likely purchase more Apple products.
The iPhone’s sentimental 10th anniversary
Time flies by when you are a leading tech company in the world. The iPhone 8 will mark the 10-year anniversary since Apple first released its iPhone (yes, the original one with no numbers!)
Evidently, Apple’s iPhone 8 faces higher than usual expectations in design, value, and even sentimentality. But, knowing the Apple prestige, customers and fans will be lining up for hours to get their hands on the device even if none of those stipulations are met.
Featured Image: twitter
