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iPhone 6S, iPhone 6S Plus: Apple’s competitive edge is dangerously fading away says Ovum

Apple guarantees success for another year with its new device range but its competitive edge is dangerously fading away, says Ronan De Renesse, Lead Analyst, Consumer Technology, Ovum.

Apple-iPhone6s-iphone6Splus

L-R: iPhone 6S and iPhone 6S Plus

The iPhone 6S and iPhone 6S Plus was announced yesterday along with iPad Pro, the new Apple TV with Siri and the iPad Mini 4. Both iPhones comes with 2GB RAM, an A9 chipset featuring 64-bit dual-core processor that clocks at 2.2 GHz.

The analyst said that the innovation gap with its key competitors is closing to the point where Apple needs to follow rather than lead:

  • The iPad Pro features a stylus and an attachable keyboard which Samsung and Microsoft have been offering with their tablets for several years.
  • The new Apple TV features voice-controlled search and a large app library which can already be seen today on Android TV products like Nvidia’s Shield.
  • Many of the iPhone 6S camera technology and features have already been implemented by Nokia, HTC, and Sony.

But Apple excels in the execution of those new consumer technologies in order to provide the best consumer experience on the market and the iPad Pro and the new Apple TV deliver this, he said.

The iPad Pro will be particularly successful among professional Apple MacBook users. The higher price point compared with other iPads should help regrow iPad revenues which declined 23% between 2Q14 and 2Q15.

With the iPhone 6S, Apple completes the best smartphone product range in the industry, addressing almost all price segments.

The iPhone is Apple’s largest and most profitable product segment (63.2% of revenues in Q2 2015) and also the one experiencing the strongest competition.

  • The iPhone 6s matches the competition in terms of features and innovation but does not exceed it. The new 3D Touch user interface could make a difference but it will take time to catch on with consumers and developers. This is an entirely new way to interact with devices that people are unfamiliar with.
  • The iPhone 5s, 6, 6 Plus, 6s, and 6s Plus makes the strongest smartphone product range Apple has ever had, addressing almost all customer segments and price points. This will maximize iPhone sales across the world and guarantee its leading smartphone brand position.
  • New pricing for the iPhone 5s, 6, and 6 Plus will help boost sales in the Asia Pacific region. Since the beginning of 2015, Apple makes more revenues from Greater China than it does from Europe. However, the rest of Asia Pacific, including India, Indonesia, Malaysia, and the Philippines, generated less than 6% of its revenues in 2Q15. Apple must gain stronger market share in those new growth markets.

“We expect Apple handset sales to grow 12.3% in 2015 to reach 216 million unit sales. Nearly two-thirds of that growth will come from the Asia Pacific region. How Apple positions the iPhone range in that region, especially outside of China and India, will be key.”

The iPhone 6S and the 6S Plus come with 4.7-inch and 5.5-inch displays, respectively. Both the smartphones will be available in a new color scheme of rose gold. Apple said it will start taking preorders of the iPhone 6S and the 6S Plus from Sept. 12 in selected countries. No launch details for Malaysia yet.

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy