Apple is expected to unveil a diversified line of smartphones tomorrow in a major push to expand its international market share and jump-start its stock.
With Apple having apparently failed to put the finishing touches on its fifth- generation iPad in time for the holiday season as expected, the pressure is on CEO Tim Cook to reveal a game-changer and regain the company's mojo. Shareholders and tech analysts are likely to be merciless if the Cupertino event does not include the following developments, at minimum:
• A deal with a large telecom firm in China, now the world's largest smartphone market. Apple has lost critical ground in China, but it has been courting Chinese journalists and has planned a separate product launch event on Wednesday in Beijing, indicating a new effort to expand market share. Similar events are being held in Berlin and Toyko.
• A more affordable, plastic-encased iPhone with different color options. This phone, rumored to be dubbed the 5C (though Apple has been known to leak the wrong names in the past), would replace the company's current middle-tier phone, the woefully outdated iPhone 4S.
• An embedded fingerprint sensor within the new high-end iPhone, possibly called the 5S. According to the rumors, this new authentication feature allows a user to unlock the phone by touching the sensor-laden home button. That could help the company's problem with so-called "Apple Picking" — iPhone theft, and provide the much-needed game-changing feature.
With a number of show-stopping Android phones released this year and even the dark horse Windows Phone showing more innovation than Apple, Cook's work is cut out for him. That job is made harder by overambitious financial analysts who are still living in 2009, continuing to set expectations too high. That year, the launch of the iPhone 3GS kicked off a steady stock climb that reached $700 per share in September 2012. Still, many analysts remain in denial, expecting Apple to invent a new product line each year as it did with the iPad, and to some extent the iPhone as well.
Late last year, Apple's stock sank upon the disastrous release of a buggy new mapping app. So part of Apple's job tomorrow is to repair its reputation as a software maker with iOS7, the upcoming operating system for iPhones and iPads. I've been testing the beta for months, and it's not overly impressive if you've become used to Android or Windows. I expect Apple to release the final version of iOS7 this week, and it had better feature a surprise.
Bottom line: If Apple doesn't deliver on all fronts tomorrow, it's going to have a hard time killing the persistent story line that when former CEO and co-founder Steve Jobs died, he took the good old days with him.
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