The Apple Store in the Mall of the Emirates in Dubai has been temporarily closed until further notice due to an outbreak of Covid-19 among staff. Reuters
The Apple Store in the Mall of the Emirates in Dubai has been temporarily closed until further notice due to an outbreak of Covid-19 among staff. Reuters
The Apple Store in the Mall of the Emirates in Dubai has been temporarily closed until further notice due to an outbreak of Covid-19 among staff. Reuters
The Apple Store in the Mall of the Emirates in Dubai has been temporarily closed until further notice due to an outbreak of Covid-19 among staff. Reuters

Apple mulls foldable iPhone as it plans minor changes to 2021 lineup


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Apple has begun early work on an iPhone with a foldable screen, a potential rival to similar devices from Samsung Electronics and others, though it is planning only minor changes for this year’s iPhone line.

The Cupertino, California-based company has developed prototype foldable screens for internal testing, but hasn’t solidified plans to actually launch a foldable iPhone. The development work hasn’t expanded beyond a display, meaning Apple doesn’t yet have full handset prototypes in its labs, according to a source.

Like Samsung’s Galaxy Fold, the Motorola Razr reboot and other offerings from Chinese companies including Huawei, a foldable iPhone would let Apple make a device with a larger screen in a more pocketable package. Apple has internally discussed a number of foldable screen sizes, including one that unfolds to a similar size as the 6.7-inch display on the iPhone 12 Pro Max. Current foldable phones have screens that are from 6 and 8 inches unfolded.

The foldable Apple screens in testing, like those from Samsung, have a mostly invisible hinge with the electronics stationed behind the display, the person said. Other companies, including Microsoft, have recently launched devices with visible hinges separating two distinct panels. An Apple spokeswoman declined to comment.

This would be a radical departure for Apple. Its pioneering touchable, all-screen smartphone is arguably the most successful consumer technology product in history, helping make Apple the world’s most valuable company. However, a foldable iPhone is likely years away or ultimately may never be introduced. The company is currently focused on launching its next-generation flagship iPhones and iPads later this year.

Apple isn’t planning major changes for this year’s iPhone line given the enhancements made to the smartphone in 2020, including 5G and new designs, according to sources. Inside Apple, engineers consider the next iPhones another “S” version of the device, the nomenclature typically given to new iPhones with minor upgrades.

The Covid-19 pandemic has also complicated product development, with Apple hardware engineers only working at the company’s Silicon Valley offices a few days a week and in limited numbers. That has meant offloading work to Apple’s engineers in China.

Last year, the pandemic delayed the iPhone 12’s release by several weeks, but Apple was able to still include nearly every intended feature except an accessory dubbed “AirTags” for locating physical items like backpacks and keys. The company now plans to launch that accessory this year, and it is planning multiple accessories for it including a leather keychain. Samsung announced a similar gizmo earlier this month.

Though overall changes will be minor, Apple is still testing a key upgrade for 2021: an in-screen fingerprint reader. This would add a new method for users to unlock their iPhone, going beyond a passcode and Face ID facial recognition. Apple started to move away from fingerprint sensors in 2017 with the launch of the iPhone X, but Touch ID has remained as a feature on Mac laptops and cheaper iPhones since then. Qualcomm, which provides Apple with 5G modems, earlier this month announced a faster in-screen fingerprint sensor.

The feature would be convenient in an environment where users wear masks, which are often incompatible with facial recognition. An in-screen fingerprint reader, which has also been featured on Android phones for several years, could also be quicker than Face ID for some users. Apple won’t remove its facial recognition scanner though as it’s still useful for augmented reality and camera features.

Apple has also discussed removing the charging port for some iPhone models in favor of wireless charging. The company moved to a magnetic MagSafe charging system with the iPhone 12, in addition to removing the charging brick from the iPhone box last year. It’s also bringing this  charging technology back to the MacBook Pro.

For its tablet line, Apple is planning a new iPad Pro that looks similar to the current model but adds a MiniLED display and much faster processor. A thinner and lighter entry-level iPad that uses the same design as the 2019 iPad Air is also in the works.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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