5 Reasons Why This Is the Most Important Apple Event Ever

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steve jobs appleThe world is on the edge of its seat again as we approach yet another landmark Apple (NASDAQ:AAPL) launch. It’s a little bit later than the previous summer splashes reserved for the latest iPhone model — the iPhone 5 — but has just as much fanfare.

And for several reasons, Tuesday’s Apple event could be the most important in the history of the iPhone since the first big reveal in 2007. One easily could argue that Apple has a lot more riding on this launch than ever before.

Here’s what’s at stake for Apple on Tuesday:

Can Cook Match the Magic of Jobs?

With the departure of iconic executive and founder Steve Jobs, this is the first true test for new CEO Tim Cook. Yes, Jobs’ health problems have persisted for some time, and you can bet Cook knows Apple like the back of his hand by now. But Apple is part gadget maker and part cultural force. Don’t fool yourself into thinking the gadgets will speak for themselves — Tim Cook needs to step up and be the new public face of Apple.

Can Apple Go Low-Price and Protect Its Brand?

There are rumors that the iPhone might go populist for the first time ever — with an “entry-level” model priced at $99. The so-called “iPhone 4S” will have the same appearance but lower-priced internal parts — the biggest money-saver being just 8GB of onboard memory, if you believe the rumors. Will consumers who have held off on an iPhone sign up for a lower-priced model with less flash? If they do, it could be a huge windfall as Apple exerts its dominance at both the high end and low end of the market. But if it flops, more than dismal sales are on the line. Apple always has prided itself on a fantastic user experience — and if consumers start to get the impression cost is trumping quality, that’s a dangerous development.

Is an iPhone Shape-Shift Wise?

Literally every high-end smartphone on the market has emulated the Apple iPhone in its shape, touchscreen interface and profile — at least, as closely as possible without being sued by the tough guys at Apple’s legal department. But one intriguing rumor has it that Apple could be reshaping the iPhone to a more ergonomic design, akin to a subtle teardrop shape instead of the current boxy appearance. There are even leaks of a redesigned “home” button. Tampering with the styling of a beloved product — be it cars, company logos or even the picture on a juice carton — can drastically affect sales. Apple better know what it’s doing if it messes with a good thing.

Is the iPod Dead?

Perhaps the most interesting rumors are those surrounding the various iPod lines. Once a game-changer for Apple, the digital music player is now a mere 8% of Apple’s total revenue. Is Apple going to try to reinvent it? Will it go low in price with a touchscreen device for $99 to replace its entry-level iPod Shuffle? Some have even speculated that the iPod might be killed altogether since every other Apple device can do what an iPod does — and more. Will Cook even mention the gadget? The iPod either needs a significant refresh to breathe new life into the gadget, or it needs to be slowly phased out. It will be interesting to see if the iPod pops up tomorrow — even briefly.

Will Apple Tell All?

Many things are in Apple’s pipeline, as evidenced by these last four items. But will Apple just stick to the low-priced iPhone that has been rumored to launch? Will it focus just on the iPhone 5? Will it do both, with maybe a little bit of iPad 3 hype thrown in for good measure? Apple always closely manages its product release cycle, but this year has been especially challenging with the Verizon (NYSE:VZ) iPhone to start the year, the iPad 2 in spring, a revamped iMac line, a new Mac OS — and a handful of others. Despite all these other products, 50% of Apple revenue is derived from iPhone sales, so what it does Tuesday could be more important than all of those other launches and upgrades combined.

Jeff Reeves is editor of InvestorPlace.com. As of this writing, he did not own a position in any of the aforementioned stocks. Follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook.


Article printed from InvestorPlace Media, https://investorplace.com/2011/10/apple-iphone-5-iphone-4s-launch/.

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