But more importantly is the long-term effect of this phone. When it was launched, Apple showed off the augmented reality (AR) capabilities of the device. Chief Executive Tim Cook told CNBC earlier this year that the iPhone will become “even more essential” with AR.
New apps with AR could open another revenue stream for Apple. Just as the App Store has become very successful, a whole new breed of AR apps could open doors. But that very much depends on AR taking off in a big way. Cook has been convinced for a long time that it will. But there are still no killer applications for it.
If AR fails, what will Apple’s unique selling point be for the phone? The almost bezel-less display has been matched, and rivals are managing to create AI chips to challenge Apple. Spending $999 for a phone you can unlock with your face hardly seems sensible.
But then again, Apple users are fiercely loyal, and will continue upgrading no matter what the price point. Ultimately, that has been one of Apple’s biggest assets — its ability to lock users into the iOS world.
With shares up over 42 percent this year, expectations at sky-high levels, and anticipation for the new device so high, Apple has little room to disappoint. The success of the iPhone X could be make or break for the world’s most valuable company.
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