Apple introduced a redesigned line-up of iPhones enabled for 5G network speeds on Tuesday, promising to usher in a “new era” for its flagship product.

The four new 5G smartphones are intended to give customers a range of options as the $2tn company heads into a holiday quarter when it is expected to sell upwards of 80m phones.

“Every decade, there’s a new generation of technology that provides a step change in what we can do with our iPhones,” Tim Cook, chief executive, said. “The next generation is here.”

The flagship iPhone 12 with a 6.1-inch display starts at $829, or $130 higher than the starting price for iPhone 11 — a move likely to please investors keen on seeing a higher average selling price. It also unveiled an iPhone 12 “mini”, a 5.4-inch model starting at $699.

The redesigned iPhone line-up © Bloomberg

The new iPhone line-up is rounded out with two Pro models, one with a 6.1-inch display and a Pro Max model at 6.7 inches — the largest display yet for an iPhone.

All four models have a new hardware design with flattened edges, the first such change to the phone’s design since the iPhone X in 2017. They are also the first handsets to use chips produced using the cutting-edge 5 nanometre manufacturing process. 

However, Apple stock, which rallied 6 per cent on Monday, fell by almost 3 per cent following the launch, suggesting investors were disappointed that the company did not introduce long-rumoured accessories including over-the-ear “Studio AirPods” and lost-items tracking tags.

The only main hardware product it revealed beyond the iPhone was the HomePod Mini, a smaller, oval-shaped home speaker equipped with Siri, which it will sell for $99. Apple has just 1 per cent market share among smart speakers, according to IDC, the market intelligence group.

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Analysts expect the 5G phones to spark a massive upgrade cycle, as customers typically own their devices for about four years. Although 5G infrastructure is not yet widely available in many regions, the phones select 4G whenever it is not available or, to save battery power, when the speeds are not necessary.

While Apple’s first 5G phones are coming more than a year after rivals Samsung and Huawei, it could help make the network more mainstream.

To coincide with the launch of the phones, Hans Vestberg, Verizon chief executive, announced the company would initiate its 5G network on Tuesday, following rivals T-Mobile last December and AT&T in the summer. “5G just got real,” he said.

More than 100 mobile operators across more than 35 markets would carry the 5G devices when the first new iPhones were released later this month, Apple said.

However, the iPhone 12 Mini and the most expensive Pro Max model would not go on sale until the middle of November, after the coronavirus pandemic hit production earlier this year. 

“The introduction of 5G technology to the iPhone range gives people a meaningful reason to upgrade and makes buying an iPhone this time around a future-proof purchase,” said Ben Wood, analyst at CCS Insight. 

Apple now has a wide range of phones for the holiday season, from the cheaper iPhone SE released earlier this year, to the $1,399 Pro 12 Max with 512GB of storage.

“Apple has a very clean portfolio of devices that offer a ‘good, better, best’ choice for consumers,” Mr Wood said. “It’s not so straightforward with rival products, where there are vast line-ups with lots of tiny differences and a variety of designs and features.”

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Via Financial Times