SAN FRANCISCO: Apple announced its newest iPhones, the 7 and 7 plus, which are water and dust resistant.
Analysts say the new iPhones could help Apple recover modestly from a recent dip in sales. But with few expected dramatic changes from previous models, Apple watchers aren’t expecting the kind of big spikes in consumer demand that the company saw two years ago, when it introduced larger screens.
Apple sold nearly 92 million iPhones during the first six months of this year, about 15 percent fewer than the same period last year. This year marks the first time that Apple has seen such declines. Industry analysts say it’s because last fall’s iPhone 6S and 6S Plus didn’t contain many new features or improvements.
Investors are hoping for a bigger boost in sales next year. Wall Street analysts say reports from Apple’s Asian manufacturers and suppliers indicate the company has decided to wait a year before introducing a major overhaul of the phone in 2017. That will be the iPhone’s 10th anniversary.
The company also introduced a new generation of smartwatches that will include GPS tracking and enough water resistance to swim with, part of its effort to boost sales in its newest product line.
Although the first version of the Apple Watch can tap the GPS function on a companion iPhone, that requires carrying another device with you. GPS isn’t common in smartwatches, though the upcoming Samsung Gear S3 will also get GPS.
As for swims, the previous Apple Watch model is resistant to splashes, but not extensive use in water.
Apple says one of the engineering challenges has been sealing the speaker port, which needs air to work. The company says it has designed the speaker to eject water after workouts.
Fitbit has one swim-proof model and Garmin has a few, but the capability isn’t common.
The watch update was announced 17 months after the first model came out. The “Series 2” watch will also get a faster processor and a brighter display for outdoor use. Apple didn’t make any mention of the new model’s battery life. The original model ran down its battery quickly.
New styles include a case made of ceramic and a run-centric design made in collaboration with Nike.
The original model is getting a price cut, to $269, and will get a faster processor. Series 2 will start at $369. The updates are coming Sept. 16. Existing watches can get new software on Sept. 13.
The Apple Watch has been the only major new product released since CEO Tim Cook succeeded company founder Steve Jobs as CEO five years ago, and sales of the device so far have been lukewarm. The company hasn’t disclosed sales figures for the Internet-connected watch, but research firm IDC estimates that Apple shipped 1.6 million watches in the April-June quarter, less half the 3.6 million a year earlier.
Watch sales are expected to increase this fall as the holiday gift season gets underway. Analyst Jan Dawson of Jackdaw Research says consumers are finding the watch is useful for health and fitness tracking, but that other apps have not caught on.
The Apple Watch will get a popular new app later this year tough. Niantic Labs, the maker of the cultural sensation Pokemon Go, announced Tuesday that the game will be released for the watch, building upon the apps that it already has built for the iPhone and devices running on Google’s popular Android software.
Apple’s stock fell 19 cents to $107.51 in afternoon trading.
Apple’s iPhone 7 has a better camera, repels water and dust
Apple’s iPhone 7 has a better camera, repels water and dust
Global brands shut Middle East stores as conflict causes chaos
- Luxury brands and retailers close stores in Middle East
- Conflict threatens the region that has been luxury’s fastest growing
- Mass-market retailers monitor situation, adjust operations in region
PARIS: In Dubai and other major Middle Eastern shopping hubs, many stores are closed or operating with a skeleton staff as the escalating conflict in the region causes chaos for businesses and travel.
The US-Israeli air war against Iran expanded on Monday with no end in sight, with Tehran firing missiles and drones at Gulf states as it retaliates for a weekend of bombing that killed Iran’s supreme leader and reportedly killed scores of Iranian civilians, including a strike on a girls’ primary school.
Chalhoub Group, which runs 900 stores for brands from Versace and Jimmy Choo to Sephora across the region, said its stores in Bahrain were closed, while other markets, including the UAE, Saudi Arabia, and Jordan remained open though staff attendance was “voluntary.”
“We operate with a lean team formed of members who volunteered and feel comfortable to come to the store,” Chalhoub’s Vice President of Communications Lynn al Khatib told Reuters, adding that the company’s leadership team personally visited Dubai Mall and Mall of the Emirates on Monday morning to check in with workers.
E-commerce giant Amazon closed its fulfillment center operations in Abu Dhabi, suspended deliveries across the region and instructed its employees in Saudi Arabia and Jordan to remain indoors, Business Insider reported on Monday, citing an internal memo.
Gucci-owner Kering said its stores were temporarily closed in the UAE, Kuwait, Bahrain and Qatar and it has suspended travel to the Middle East.
Luxury growth engine under threat
Shares in luxury groups LVMH, Hermes, and Cartier-owner Richemont were down 4 percent to 5.7 percent on Monday afternoon as investors digested the knock-on impacts of the conflict.
The Middle East still accounts for a small share of global spending on luxury — between 5 percent and 10 percent, according to RBC analyst Piral Dadhania. But the region was “luxury’s brightest performer” last year, according to consultancy Bain, while sales of expensive handbags have stalled in the rest of the world.
Now, shuttered airports have put an abrupt stop to tourism flows into the region and missile strikes — including one that damaged Dubai’s five-star Fairmont Palm hotel — are likely to dissuade travelers, particularly if the conflict drags on.
“If you assume that it’s a $5 billion to $6 billion (travel retail) market and let’s say it’s going to be shut down for a month, we are talking about hundreds of millions of dollars that are definitely at risk,” said Victor Dijon, senior partner at consultancy Kearney.
If Middle Eastern shoppers cannot travel to Paris or Milan, that could also hurt luxury sales in Europe, he added.
Luxury brands have been investing in lavish new stores and exclusive events across the region. Cartier unveiled a “high-jewelry” exhibition in Dubai’s Keturah Park just days before the conflict started.
Cartier and Richemont did not reply to requests for comment.
Luxury conglomerate LVMH has also bet big on the region. Last month, its flagship brand Louis Vuitton staged an exhibition at the Jumeirah Marsa Al Arab hotel, and beauty retailer Sephora launched its first Saudi beauty brand.
LVMH does not report specific figures for the region, but in January Chief Financial Officer Cecile Cabanis said the Middle East has been “displaying significant growth.” LVMH did not reply to a request for comment on how its business may be impacted by the conflict.
The Middle East has also attracted new investment from mass-market players. Budget fashion retailer Primark said in January that it plans to open three stores in Dubai in March, April and May, followed by stores in Bahrain and Qatar by the end of the year.
“Primark is set to open its first store in Dubai at the end of March but clearly this is a fast-moving situation which we are monitoring closely,” a spokesperson for Primark-owner Associated British Foods said.
Apple stores in Dubai will remain closed until Thursday morning, the company’s website showed, while Swedish fast-fashion retailer H&M said its stores in Bahrain and Israel are closed.
Consumer goods group Reckitt has told all employees in the Middle East to work from home, temporarily closed its Bahrain manufacturing site and suspended all business travel to the region until further notice.
