3 Things Apple Must Do at Its Sept. 10 iPhone Unveiling


iPhone 5. Source: Apple.

Apple's (NASDAQ: AAPL  ) new iPhone lineup is rumored to be unveiled at a Sept. 10 Apple media event. With the stock still trading more than $200 below its 52-week high of $700, the Street will be watching the company closely when it unveils its next generation of smartphones. With negative year-over-year comparisons in EPS for the past three quarters in a row, the iPhone 5 failed to help the company boost its bottom line. For this year's iPhone lineup to potentially have a positive impact on the company's bottom line, Apple's going to need features that introduce an element of surprise and differentiation. Particularly, these three announcements at the Sept. 10 event would help.

A lower-cost iPhone
If there's one aspect to the event that could probably make the biggest difference for Apple, it's the iPhone 5C, or Apple's rumored low-cost iPhone. Why? It could help Apple not only boost the bottom line, but also improve the its overall gross profit margin.

How? Apple's iPhone business is the company's most profitable segment. So even if a lower-cost iPhone had lower profit margins, they will probably be higher than the company's overall average gross profit margin. As Morgan Stanley analyst Katy Huberty suggests, the outsized gain in revenue from increased sales in emerging markets could more than offset the phone's lower gross profit margins, boosting the company's overall gross profit margin, too.

Fingerprint sensor
Rumors are also suggesting that Apple may introduce a fingerprint sensor on the new version of its premium phone, the iPhone 5S.

For Apple to generate the usual hype for the phone, it's going to need to go beyond the typical internal upgrades (e.g., a faster processor or a higher-resolution camera). A fingerprint sensor would be an excellent differentiator. In fact, given that the phone is rumored to have a nearly identical form factor, the fingerprint sensor is basically a necessity.

Groundbreaking battery life
For many consumers, a smartphone goes wherever they go -- without exception. That's why battery life is more important than ever. On this front, the iPhone 5 is currently behind several Android competitors. Launching a phone with groundbreaking battery life could be a selling point in and of itself.

According to Apple's specs for the iPhone 5, the phone gets up to eight hours of talk time on 3G and up to eight hours of Internet use on 3G and LTE. That's a far cry from Google's Moto X, which gets 24 hours of battery life on mixed usage.

Apple must improve its battery life on its premium iPhones for it to have a value proposition that can meaningfully move the bottom line.

What features are you looking for?
What new features would persuade you to buy the iPhone 5S? Do you think Apple needs an iPhone 5C to meaningfully boost the boom line in 2013?

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Read/Post Comments (6) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 31, 2013, at 7:56 PM, mdl00 wrote:

    No, I don't think Apple needs an iPhone 5C. People buy Apple products for their quality, not for their price point.

  • Report this Comment On August 31, 2013, at 8:33 PM, bghouse wrote:

    Apple needs to put out a phone with truly outstanding camera image quality. There is currently little differentiation between the top smart phone models.

  • Report this Comment On August 31, 2013, at 9:14 PM, Henry3Dogg wrote:

    @Daniel

    All these things (and many others) are nice ideas. But none of them are individually essential.

    You're a journalist. Not a top notch marketing guru with detailed knowledge of Apple 's strategic plans.

    Stop getting carried away by your own ego.

  • Report this Comment On September 01, 2013, at 9:18 AM, Changethursday wrote:

    You might want to double check that 24 hour number thier marketing dept is pushing..

    http://www.anandtech.com/show/7235/moto-x-review/6

    Remember when motley fool had writers who researched things before posting? Anymore its about trying to blog about a current hot company in hopes of gettingenough article views to make a few bucks.

  • Report this Comment On September 01, 2013, at 11:33 AM, heydo1 wrote:

    A deal to offer lower cost Iphones to China Mobile's 750 million subscribers is the biggest thing that Apple could announce on September 10.

  • Report this Comment On September 01, 2013, at 1:32 PM, twolf2919 wrote:

    They *must* improve battery life - really?? As another poster already commented, the iPhone is already near/at the top in battery life - and the phone the author tried to use in support of his argument doesn't even do as well as the iPhone in objective tests.

    Apple is able to provide outstanding battery life with the lowest-capacity battery among all top-notch smartphones (e.g. it has a 1690mAh battery, whereas the Samsung Galaxy S4 uses a 2600mAh unit). Imagine how far ahead of the competition it would be if it stuck a similarly sized battery into its phones! But I suppose that is a physical impossibility since Apple doesn't sell phablets and, thus, doesn't have the room for such behemoth batteries.

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