New iPhone 13, iPad and Watch Series 7 shown off at Apple event

The Cupertino, Calif., tech giant revealed the iPhone 13 and a smartwatch with a new look during its annual September event, which the company live-streamed on its website instead of keeping it in person due to COVID-19 precautions.

The event comes in a year in which Apple has seen record gains, thanks largely to last fall’s iPhone 12, while opponents are unhappy with the power to have third-party software on their mobile devices.

The iPhone 13 looks similar to the previous model, and a major challenge for Apple’s chief executive, Mr. Cook, is to avoid the slump in sales that has greeted other off-year iPhones after the big hit. Some investors are concerned that the company’s stock is overvalued and that new phones with less dramatic changes than last year’s much-anticipated debut won’t promote the same level of growth.

Last year’s phones marked the arrival and a new look of ultra-fast, 5G-cellular-data-enabled iPhones. Apple said the iPhone 13 has a more vibrant screen, better cameras, a faster microprocessor and a bigger battery.

The company said that the regular version of its iPhone 13 will get 2.5 hours more battery life than the previous model. New features include a “Cinematic Mode” that allows users to capture movie-style video with their iPhone cameras.

Analysts surveyed by FactSet expect unit sales to decline slightly in the next fiscal year starting October, while revenues are set to rise slightly – creating optimism among some that 5G is expected to offer Apple is in its second year. Apple said it is expanding its 5G phones to 60 countries.

If analysts are correct and unit sales decline during the next year, it will be important for Apple to write off more money from each sale. While the tech giant hasn’t seen an incredible growth rate of iPhone devices in recent years, Mr. Cook has been able to boost revenue growth with more expensive phones.

One factor that’s benefited Apple over the past year—and helped fuel the appeal of pricey phones for some consumers—is cellular carriers’ battle with customers for their new 5G services. They have flooded the market with incentives to make the phone more affordable for many buyers.

Meanwhile, over the past year Apple has increased the average selling price of its phones by 12% this fiscal to $829, according to analysts’ estimates.

Tuesday’s incident marked the first public appearance by Apple’s chief executive, Mr Cook, since a federal judge on Friday ruled largely against “Fortnite” maker Epic Games Inc.’s attempt to undo Apple’s hold. The videogame company’s antitrust lawsuit sought to allow third-party developers to bypass Apple’s App Store.

Instead, the judge cited the value of Apple’s ecosystem to consumers, while finding that rules restricting developers to alternative payment methods outside of their apps went against California law and ordered a halt. Epic is lucrative, and Apple has said it is reviewing the decision.

Before the ruling, Apple was making concessions on the so-called anti-steering provision as it worked to settle a class-action lawsuit brought by smaller developers and an investigation by Japanese authorities.

Mr Cook was not expected to comment on company news during Tuesday’s event. Instead, he and his executives can discuss the new iPhone’s features and other new offerings.

The new iPhone is not expected to offer dramatic changes compared to last year’s much-anticipated phones, which can use ultrafast 5G cellular connections. A person familiar with the matter said that the company is expected to have small, medium and large sizes while offering improvements in cameras and battery. Apple is also expected to reveal its latest smartwatch.

The company is on pace to end its fiscal year this month and is selling a record number of iPhones. Analysts surveyed by FactSet estimated on average that Apple shipped 239 million devices, which would beat the previous record of 231 million in fiscal 2015, when the first big-screen version spurred growth.

Apple no longer discloses unit sales, but has said device revenue increased 38% in the first three quarters of the year compared to the previous year. Analysts forecast iPhone sales to be up 41% with a record $194 billion.

Analysts say it’s unlikely Apple can sustain that growth next year. In July, the company expressed concerns about the industry’s lack of microprocessors, which hinders iPhones. Sales also typically drop in the year following the first 12 months of major introductions like the iPhone 12. For example, after posting its previous best year for iPhone revenue in fiscal 2018—thanks to the introduction of the iPhone X, with a face-to-face identity unlock feature and a facelift—device sales continued to grow over the next two years. fell over the years.

“On many levels, the iPhone 12 cycle resembles the iPhone 6 cycle and the iPhone 10 cycle,” Tony Sacconaghi, an analyst at Sanford C. Bernstein, said in a research note this summer. He pointed out that Apple’s stock has underperformed each cycle, falling 32% and 39% from peak to trough after the iPhone 6 and iPhone X, respectively.

Asked about a potential drop in iPhone sales, Mr. Cook told analysts in July, “We’re in a very early innings in 5G. If you look at 5G penetration around the world, there are only a few countries that are in double digits so far. And so nine months or so into it is a wonderful thing.”

Apple shares reflect enthusiasm about the iPhone. In the months leading up to the launch of the latest phone in 2020, the stock doubled. The shares have gained about 13% so far in 2021.

Before getting into iPhones, Apple updated its lower-end iPad tablets, including a new iPad and iPad Mini, which will cost $329 and $499, respectively. The company also revealed its latest version of its smartwatch, the Watch Series 7, which debuts a bigger screen with softer corners. The Series 7 will start at $399 and will be available later this fall.

Analysts polled by FactSet forecast that Apple’s wearables and accessories category will grow to $38.7 billion this fiscal year compared to the year the Watch made its debut in 2015.