New Apple Watches and I-Pad are on Apple’s calendar for 2021

STUART HIMMEL - Staff Writer

With interest rising in such devices among homebound users, Apple Inc. showed off its latest smart watch with faster computing power and its ability to measure blood oxygen as well as updated iPads at their first ever virtual only product reveal from its headquarters located in Cupertino California.

Apple’s keynote event, like many other events fell victim to the Covid-19 Pandemic leaving Apple with very few options aside from the virtual product reveal. Instead of CEO Tim Cook unveiling the company’s latest iPhone as he had done every September since 2012, Apple showed its Watch Series 6 and a new mid-tier offering called Watch SE, with fewer abilities that the high end version. “It’s been gratifying to see the important role our products have played helping people come together, carry on and move forward. We know that life won’t always be like this and we’re all looking forward to better days” Mr. Cook said.

The company also revealed an updated iPad Air with a new touch ID button on the side that unlocks the screen and comes with faster computing power. The latest smartphone is expected to be revealed next month after Covid-19 related delays pushed back production.

Analysts say not having to introduce the newest and latest iPhone will let Apple showcase products that might get less attention in a normal year. Looking to expand further into digital services, the company announced a streaming fitness service called Fitness+. The monthly service fee is connected to the company’s watch, aiming to help users track and improve their performance. Fitness+ also offers virtual workout classes with videos on the iPhone or TV. The company also detailed a new bundling of digital subscriptions called Apple One as it works to improve its software business beyond the iPhone. The new bundle comes with a monthly fee like Fitness+ and includes Apple Music, TV, Arcade and iCloud storage.

The new products arrive as demand for such devices has increased while the pandemic upended daily life and left many people stuck at home. Global shipments of tablets, such as the iPad, increased 26% last quarter compared with a year earlier which was attributed to the increased industry demand on remote work, learning and leisure. Apple said that revenue from the device rose 31% during the April to June period compared with a year ago. An update to its mid-price iPad could boost sales further among buyers looking for a more affordable option.

The new smartwatch could help strengthen Apple’s already dominant market position. Estimates are that Apple has 53% of the global market of like devices last quarter. Revenue in the North American wearables market remained flat during the period despite shipments of devices rising 10%. Low end activity trackers fueled that increase with estimates that Apple shipped 3.2 million watches in the past quarter in North America, an increase of 9% from a year earlier. The growth was attributed to a 30% boom in the lower version of Apple’s line, the Watch Series 3. Apple has evolved the smartwatch which first went on sale in 2015, from a heavily emphasized fashion accessory to a device more focused on health and fitness, both attributes are expected to be beefed up in the newest version.

The ability to track blood oxygen, skin temperature and breathing rate are among the hot features in smartwatches at the moment. Health care and fitness are top of mind for consumers right now, so an updated watch that addresses those features will prove popular for Apple. Consumers are increasingly looking for devices that can reliably track their basic health and surface problems as early as possible. Despite the potential for the watch and iPad, many will be looking for clues about the next iPhone. The potential for the next generation of iPhones is enormous. Almost 40% of the 950 million iPhone customers haven’t upgraded to a new device in the past three and a half years. Analysts are betting the anticipated first offering of a 5G capable iPhone might lead customers to replace their older devices. It may translate into a once in a decade type upgrade opportunity for Apple.