Apple's new iPhones: here's what the critics think

It looks like Apple has done it again, in more ways than one

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The reviews for Apple's  (NASDAQ: AAPL)  two new iPhones are in: It looks like Apple has done it again, in more ways than one.

According to hands-on reviews from Bloomberg, The Wall Street Journal, The New York Times, Engadget, TechCrunch and CNet, Apple has delivered a pair of solid handsets. Unfortunately, that's all they are — as the critics note, Apple hasn't done much this year to entice existing iPhone owners to upgrade.

The iPhone 5s is the phone of the future

Reviewers don't dwell much on the iPhone 5c; after all, there isn't much to say that hasn't already been said. Outside of some minor antenna improvements, the plastic iPhone is more or less just last year's iPhone 5, only now it has a colorful body. The iPhone 5s, on the other hand, has received some notable upgrades, in the form of a better camera, a faster processor, a fingerprint scanner, and a dedicated motion chip.

Although Apple has decided to stick with an 8 megapixel camera, those individual pixels are bigger. The company has included a second LED flash, designed to improve the camera's performance in low-light settings. According to CNet, those changes have really made a difference, and the new camera is now the phone's single "biggest selling point."

The processor, too, is improved, with Apple making the jump to 64-bit architecture. Notably, the move seems not to have been anticipated by its rivals, and may have caught them completely off guard. Samsung  (NASDAQOTH: SSNLF)  said that it is working on 64-bit processors, but wouldn't have them for some time.

Ultimately, however, that might not matter, at least for now. Although TechCrunch admitted that the phone's general performance is "perceptibly improved," it acknowledged that the A7 was "designed for future applications," as apps do not really exist yet to take advantage of that increased power.

The Wall Street Journal had a different take — Walter Mossberg wrote that he "didn't notice" any dramatic speed improvement. He also didn't mention the phone's second processor, the M7 motion chip. That's because it doesn't really do anything right now — in the future, it could form the basis of Apple's wearable computing strategy; but for now, owners won't notice it.

What they will notice is the fingerprint scanner, which received unanimously positive reviews. The New York Times' David Pogue called it "genuinely awesome."

A year to wait

But will those changes be enough to entice existing iPhone owners to upgrade? Perhaps more importantly, will it get any Google  (NASDAQ: GOOG)  Android devotees to make the switch? Probably not. Despite loving the handset, many of the reviewers concluded that this was a year to wait.

  • Bloomberg wrote Apple "has never changed so little from the previous generation."
  • Engadget remarked that if you haven't "seriously considered an iPhone before, there likely isn't much in the 5s to make you change your mind…many people might just wait it out another year."
  • CNet said that if "you already have an iPhone 5, I'd say it's not a bad year to just wait."

Google's Motorola takes color to the extreme

With much of the iPhone 5s' changes aimed the future, the bigger draw to consumers might ultimately be the iPhone 5c's unique, colored body. However, in this arena, Google has already beaten Apple to the punch.

Motorola's new phone, the Moto X, takes the idea of multiple color options to the next level, allowing buyers to customise their phones with a specially designed website. More than just plastic, Moto X buyers will even get the option of phone made out of wood.

Granted, the Moto X isn't the iPhone. It's an Android-based handset, one that's received favorable reviews, but an Android handset nevertheless. Someone dead set on Apple product isn't going to be swayed by wood paneling; but if colors are the real draw, the Moto X has the iPhone 5c beat in spades.

Is Apple falling behind Samsung?

Likewise, though Apple has taken the unprecedented step of releasing two different iPhones in the same year, both sport identical form factors. In contrast, Samsung has been releasing phones in virtually every conceivable screen size — from 4.3- to 6.3-inches.

As if to rub in Apple's continued embrace of the smaller form factor, Samsung's latest phablet, the Galaxy Note 3, will go on sale just weeks after Apple's new phones. At 5.7-inches, it dwarfs Apple's iPhones, and though Samsung's larger phones have been widely mocked (BGR once called the original Note "too big to be taken seriously" — its screen was only 5.3-inches), nearly all of its competitors (Sony, LG, HTC) have followed suit.

All that is, except for Apple.

Treading water

There's really two ways to look at Apple's new phones. On the one hand, Apple took something that wasn't broken, and didn't fix it. It delivered yet another terrific device, just slightly better than the one before it.

But on the other hand, you could argue that Apple's larger mobile strategy is broken; and there, it took no steps to fix it. Despite losing market share to Android in emerging markets, Apple has chosen not to put out a cheap iPhone. Despite the trend toward larger phones, Apple has clung to the 4-inch form factor.

Overall, the new iPhones shouldn't be expected to set any sales records. They probably won't drive the Apple faithful away, but they're far from the exciting blockbuster products many struggling Apple shareholders crave.

The Australian Financial Review says "good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit." Get "3 Stocks for the Great Dividend Boom" in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

A version of this article, written by Sam Mattera, originally appeared on fool.com.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »