Apple’s New iPhone Exposes Buying Opportunities

The news is out, and so far it’s not looking great.

Apple has unveiled their new version of the iPhone, and since the release lackluster reviews have become common.

Many investors are hoping the second iPhone release this year changes recent sentiment. But even if it doesn’t there are still ways to profit off the release without ever touching an Apple share.

Apple Not Innovative Enough?

The new smartphone flagship, dubbed iPhone X, is jam-packed with gee-whiz must-haves like an OLED display, a hot new feature that was already available on other smartphones years ago.

Of course, the new phone has more powerful graphics and processing capabilities, along with more memory and storage. Sky-high chip prices, however, are going to eat into Apple’s ruthless management of component costs.

There’s been a price crunch in the kinds of chips used for smartphone memory and storage, meaning Apple’s final profit on each unit will be less than the $1,000 price tag would imply.

Apple didn’t go for broke with its new wireless charger, either. The new iPhone won’t need to be jacked in to top off the battery, but neither will it be using technology much different from what’s already been available for years in other phones.

The Qi-based (pronounced “CHEE”) inductive charging tech in Apple’s new sure-to-be-best-seller is an industry-standard wireless charging interface. Yeah, it’s great when you can just lay your phone in a charging cradle or on a pad, but Qi-whiz, it isn’t anything earth-shatteringly new. Other phones have had this for years.

Which is why we’re still waiting on the big kaboom in wireless charging technology to emerge from somewhere else… real power at a distance that can charge any device on your work desk… or maybe even anywhere in your room.

True “Cord-cutting” Tech

The companies working on next-gen wireless charging capabilities will have a huge leg up in the next round of high-tech devices. One company has already made significant headway into this space. Instead of magnetic fields as used in inductive chargers, this new tech innovation uses radio frequencies. These radio waves carry power through the air in a form similar to how they carry data.

That’s going to be a huge improvement. Wireless charging today still essentially leaves you docked to one location until charging is complete. The new tech will function like Wi-Fi, cutting the tethered aspect currently associated with “wireless” charging.

Now, I don’t want anyone to think that the new iPhone is all a disappointment. In one area, it’s really pushing the envelope.

The AR Revolution

Apple is implementing augmented reality technology in their new smartphones. The signs were there months ahead of time. For example, a few months ago the company released ARKit, a programming framework for AR apps.

But the Apple included more than just software for the phone. An improved camera capable of sensing the world in three dimensions will help fuse together the digital world with the real world more accurately and realistically.

Apple is making a big push into the AR realm… and it’s not alone. Other tech giants like Google, Microsoft and others are rushing to establish themselves in this emerging tech market.

By raising AR’s profile and pushing the technology toward the mainstream, Apple’s launch will indirectly benefit the companies leading the way in this area.

Companies investing in developing other parts of the formula enabling the AR/VR revolution, from light, powerful batteries to alternative human computer interfaces, are going to pay off big-time for investors moving forward.

Voice-recognition chips, for example, will help facilitate interfacing with a wearable device without the need for a keyboard or touch display, opening up another door for real-world application of this advanced tech.

We’ll know a lot more in the coming months as these first-gen introductions grab footholds in the consumer market. As we begin to peel the layers away, I’ll be right back to tell you which advances will stick and which ones will drop off into obscurity.

Stay tuned, things are getting exciting.

For Tomorrow’s Trends Today,

Ray Blanco
for The Daily Reckoning

The Daily Reckoning