Apple Inc.'s iPhone Camera Problem

In This Article:

When Apple (NASDAQ: AAPL) announces new iPhone models each year, the presenter -- usually Apple marketing chief Phil Schiller -- talks quite a lot about the improvements the company made to the camera subsystems of its new phones.

These improvements generally tend to be substantial, as improvements in image processor technology, camera sensors, and lens design coalesce into a true generational leap for iPhone cameras.

Apple's iPhone 8 Plus (left) and iPhone 8 (right).
Apple's iPhone 8 Plus (left) and iPhone 8 (right).

Image source: Apple.

Unfortunately, while Apple generally delivers big improvements each year, in recent years, Apple's flagship phones have either trailed or merely matched the competition in terms of camera performance.

For example, DXOMark gave the cameras on the iPhone 8 and iPhone 8 Plus scores of 92 and 94, respectively. The iPhone X, which has a slightly more advanced camera subsystem, achieved a score of 97 in DXOMark's battery of tests. The iPhone X is among the best phones today in terms of DXOMark score -- matching the Huawei Mate 10 Pro and trailing the Pixel 2 by one point.

However, the iPhone X will remain Apple's top smartphone offering until September, while competing smartphone vendors -- like Huawei, Samsung (NASDAQOTH: SSNLF), and several others -- will likely release new flagship devices in the spring that'll easily surpass the iPhone X in DXOMark.

Here's why that's an issue for Apple's iPhone business.

Customers care about cameras

There's a reason smartphone vendors invest heavily in developing capable new cameras -- customers care a lot about camera quality! This was quite evident in the degree of success the iPhone 7 Plus enjoyed in the market relative to the standard iPhone 7, which was likely driven by the iPhone 7 Plus' then-unique dual rear-facing camera subsystem.

If camera quality is a significant factor in customers' smartphone purchases, then it's only natural that smartphone vendors are going to invest significantly in trying to build the best smartphone cameras they can.

This leads us to Apple's problem.

A problem and a prediction

Later this month, Apple's biggest rival, Samsung, is expected to release its new Galaxy S9 and Galaxy S9+ flagship smartphones. These phones are expected to include new camera sensors and redesigned optics that should boost image quality, particularly in low-light situations (these are really hard to get right, especially in mobile cameras).

I have little doubt that these phones will crush the iPhone X in DXOMark, with each delivering composite scores well over 100 (DXOMark is made up of many sub-tests that measure different aspects of a mobile camera). This is the kind of thing Samsung will be able to aggressively market against Apple's current iPhone lineup.