The movement was due to today’s “Hi, Speed” event. Investors and consumers expect to be able to pre-order at least some products after the event. But will this be the big surge in orders that we’ve seen in the past?
This was the first iPhone delay in history. Apple typically unveils its annual iPhone refresh in September, but due to Coronavirus related supply chain issues, the company had no choice but to push it back a month.
Rumors are that in addition to 5G capability, the new iPhone will have longer battery life and a new performance-boosting chip.
To offset the costs of these improvements, new iPhones probably won’t come with a charger or earbuds. But I’m not here to sell you an iPhone.
Apple really has positioned itself as an integral cog in the wireless communications machine.
Networks want to carry the iPhone because people want to have an iPhone and will be attracted to deals on their network. And an Apple on a faster network essentially sells itself.
Here lies the problem…the networks aren’t ready. Which means this really can’t be the big 5G event that investors want to make it out to be.
The wireless carriers seem to be working as fast as they can. They want to be able to tout the new iPhone and the fastest speeds.
TMobile just announced that 121 more cities and towns were added to its 5G network.
TMobile has more mid-band spectrum than anyone else in the US and these new customers can expect speeds 7.5x faster than they were getting on LTE. And if these customers don’t want to wait for an iPhone, they can easily get a Samsung, LG, or Motorola 5G capable phone.
For nearly 50% of smartphone users, iPhone is the way to go. That’s why this announcement is actually so important.
When Apple originally announced the delay, it didn’t just affect consumers.
There is a whole economy based on wireless communication. App developers now had to wait, third-party companies developing accessories now had to wait. And if the networks aren’t ready these people are still stuck waiting.
As I said above, iPhones on faster networks sell themselves. Maybe this is the kick in the pants that 5G needs when we realize that no one is ordering iPhones until the networks will actually support them.
Or will we see carriers putting together these great subsidized deals on the preorders to lock consumers into contract now?
It’s going to be interesting to see how this all plays out. What comes first, the chicken or the egg?
Do the networks need to be up and running for preorders to start rolling in? Or will the preorders provide extra motivation to get the networks up and running?
I’m always keeping an eye on the 5G developments. It is one of the most important technological developments that are happening right now.
Readers of my Wealthy Tech Investor have seen triple-digit gains from companies cashing in on 5G development.
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%
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