Apple iPhone 5 Launch: Expectations Run High Ahead Of New iPhone Launch As Apple Dons Defensive Role Against Samsung

  on September 12 2012 9:06 AM

With just a few hours to go for the much-awaited Apple's (AAPL) Sept.12 event, excitement about the announcements of the next generation iPhone and new gadgets seemed to have hit the roof. 

As speculation about the news whether the iPhone could measure up with the new devices introduced by competitors is on the rise, a few bloggers seem to whine about the iPhone fatigue, the Wall Street Journal has stated.

Code named N41, the next iPhone which has been under development for over a year, has generated tremendous enthusiasm with images of leaked parts getting published every other day in the run up to Wednesday's event.

Apple is expected to change the shape of the handset with a slightly larger display, sporting a different shell and running on new mobile software.

The Apple website does discuss in detail the improvements to expect in iOS 6 in comparison to the previous versions including those found in voice-activated assistant Siri, new digital-coupon-and-passes service called Passbook, new mail and accessibility features among others.

Whether Apple will satisfy the consumer expectations is pretty hard to guess as even previous iPhones, especially iPhone 4S debuted to lukewarm receptions, but became hugely popular later and drove up Apple sales and stock price to new highs.

However, lessons from the past do indicate that Apple shares often dip after the product introductions paring some gains made in the lead to product launch, the Wall Street Journal noted.

But above what is driving the expectation is Apple's new defensive role against competitor Samsung that leads smartphone shipments in the second quarter.

Commenting on Apple's new role, Shaw Wu, analyst with Sterne Agee told Reuters: "They were the upstarts before. Now they are more in a defensive role."

Though competitors are yet to match Apple's seamless integration of hardware and software, Google's Android system has become the top mobile operating system while Samsung leads smartphone sales.

With iOS 6 features update on its website, Apple has familiarized technology enthusiasts to software changes that can be expected in the new iPhone. So what remain to be watched closely are the hardware advancements that come with the new iPhone.

The iPhone accounts for half of Apple's revenue and bulk of Apple's profit, Reuters has noted, adding that Cook needs to dazzle both Wall Street and consumers.

Though Cook has won praises for sustaining Apple's growth story since last year, the jury is yet to decide if he has innovation and marketing prowess of his predecessor Steve Jobs, Reuters has reported analysts as saying.

The Apple (AAPL) scrip closed Sept.11 flat at $660.59 while Samsung (005930) closed with a gain of 3.03 over the previous close at 1294000 KRW.

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