Apple delivers strong IPhone upgrade but lacks a little sizzle

1 mins. to read

Staying well ahead of the pack has always been Apple’s strength, but the intense competition within the smartphone space from Android based phones plus lots and lots of leaks means that the launch of IPhone 5 yesterday somewhat failed to capture the imagination after plenty of hype.

With a larger 4 inch screen (half an inch more), faster processor, and 18% thinner, as well as 22% lighter than the hugely successful IPhone 4s, Apple’s CEO Tim Cook delivered a solid rather than surprising upgrade to IPhone’s capabilities, illustrating how far advanced the IPhone is in its product life cycle . The usual total secrecy behind its launches seems to have evaporated in this case, as many of the enhancements were flagged on technology blogs over the last few weeks. No sign of the wireless charging and enhanced battery life that many IPhone users have been clamouring for.

With the new device being available from September 21st, expectations are high for the final quarter of 2012 (Apple’s first fiscal quarter of 2013) with estimates of 45-50 million IPhone 5’s, compared with 37 million IPhone 4s in 2011. With analyst estimates of $15.5-18.5 of earnings in the next quarter which includes the key Christmas period, Apple’s aggressive international expansion is key to hitting the numbers.

The shares rose 1.4% to $670 during normal trading hours, and $671 in after hours, after oscillating in a tight range throughout the day. With a $619 billion market capitalisation, Apple needs to keep churning out innovation at a significant rate to maintain the company’s gigantic momentum.

Contrarian investor UK

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