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The introduction of the iPhone X in 2017 saw Apple create an entirely new smartphone segment focused on power users. But at the same time, it arguably dropped the ball elsewhere in the name of profit.
If leaks and rumors are to be believed, though, next year's lineup overhaul could be so dramatic that it may be considered the company's best move in years. So many iPhones are planned that Apple will be targeting virtually every consumer demographic north of $399 while also taking into account the needs of different groups of customers. This will give it more opportunity than ever to push both its Wearables and Services businesses.
The iPhone 9 is going to be perfect for traditional users
The spiritual successor to the iPhone SE – the iPhone 9 – is expected to arrive in March as a replacement for the iPhone 8. It'll apparently cost $399 and should pair the latter's body with several iPhone 11 components, therefore making it the perfect device for Apple's most traditional (and stubborn) users who refuse to upgrade to the newer all-screen design. The iPhone 9 may also prove to be a good option for Android users on a budget who are looking to enter Apple's ecosystem for the first time.
Profit naturally isn't the focus here but buyers of the phone may still be willing to sign up to Apple's various services including Apple TV+. And because the iPhone 9's going to feature components that have been designed to work especially with the new services, this device should create a huge long-term opportunity for the growing business.
The iPhone XR & iPhone 11 will be a good all-screen entry point
The iPhone XR was the world's best-selling smartphone for the first nine months of this year and the newer iPhone 11 is on track to steal the title in January. The phones can currently be acquired for just $599 and $699 respectively but are expected to receive hefty $100 price cuts come September 2020, making them the perfect choice for iOS users that are interested in upgrading to the all-screen design.
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Both of these phones will boast slightly higher profit margins than the iPhone 9 but should provide equal opportunity for Apple to push its long list of services. These iPhones may also allow the company to continue growing its Apple Watch and AirPods business. After all, some of these users will have more disposable income and could be upgrading from devices that aren't compatible with the popular wearables.
The compact iPhone 12 may be Apple's secret weapon
The upcoming 5.4-inch iPhone 12 may well turn out to be Apple's secret weapon next year because it'll mark the beginning of a completely new iPhone segment. The device is going to offer an updated version of the iPhone 11's popular dual-camera system paired with 5G connectivity and a bigger battery, the three main upgrades consumers will be looking for in 2020.
If Apple plays its cards right, the iPhone 12 will be the perfect upgrade for iPhone 6/7/8 and iPhone 5/SE users that are fans of Apple's latest design language because it won't be too expensive – a $649 price tag is expected – and certainly won't compromise on size – it's expected to be smaller than the iPhone 8. A large proportion of buyers will, therefore, be customers who previously couldn't use Apple's services or wearables, thus creating yet another chance to boost revenue and profit elsewhere.
The iPhone 12 Plus should satisfy the iPhone 11's demographic
Despite the name, the iPhone 12 Plus will be more of a direct successor to this year’s iPhone 11. It’s expected to couple everything featured on the compact iPhone 12 with a 6.1-inch OLED display. This device will continue to target buyers who are looking for the latest iPhone and have a lot of disposable income for services but who aren't willing to spend $1,000 on a Pro model.
The iPhone 12 Pro series will target power users
Apple’s iPhone 12 Pro and iPhone 12 Pro Max are going to benefit from updated triple-camera setups paired with a new 3D sensing system that'll drastically enhance AR content and portrait photography. The most important changes may be the 6.1-inch and 6.7-inch OLED displays that are expected, though, because it'll silence complains about the current ones being too small.
The smaller phone will be used to target iPhone X and iPhone XS owners with massive amounts of disposable income while the bigger version will target iPhone XS Max owners and users of massive Android devices from Samsung and other premium brands.
As long as Apple can stop users from switching platform, it'll probably be happy with the results. But if unsuccessful, Apple could be missing out on large amounts of revenue and profit for its AirPods, Apple Watch, and Services businesses in years to come.
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