Apple, Inc. (NASDAQ: AAPL) announced a new iteration of iPhone, among other products, at its fall event Tuesday. Apple’s shares, however, have not received much importance since the product’s launch.
That’s what the sale side says.
Sustainability is key in the second year of the 5G era, says Credit Suisse: The launch event unfolded largely in line with expectations, and led to more incremental changes in training, Credit Suisse analyst Matthew Cabral said. This stands in the way of improving the step function seen last year with the addition of 5G, the analyst said.
Aggressive promotions of out-of-door carriers remain a potential factor in helping stimulate demand, he said.
“In more general terms, sustainability remains a key debate for actions as we move into the second year of the 5G era.”
History suggests a significant slowdown in the second year of major cycles, Cabral said.
The analyst sees the drive for the unit fade as last year’s accumulated demand from more tech-savvy adopters gives way to a more widespread buyer base focused on a standardized replacement cycle. .
In addition, ASPs could change winds as the more popular 5G adoption pushes the mix back after last year’s oversized Pro / Pro Max force, Cabral said.
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Why Morgan Stanley expects higher ASPs, strength of drive induced by promotion: From the perspective of feature set and pricing, the launch event lived up to expectations, said Morgan Stanley analyst Katy Huberty.
Some of the surprises include a 1TB iPhone model and new iPads, the analyst said.
Despite the relatively unchanged prices of the iPhone compared to the iPhone 12, it is likely that the introduction of high-end iPhone storage SKUs will drive the year-on-year growth of the ASP phone, to say.
At the same time, higher iPhone exchange rates and more aggressive manager promotions make the iPhone 13 more affordable for consumers, Huberty said.
“When combined with iPhone replacement cycles that remain elongated, the adoption of 5% of 5G at the base installed by the iPhone, fully reopened retail stores and the high backlog of the iPhone entering the FY22, we remain optimistic about the iPhone’s growth prospects in the FY22 ”.
The analyst sees potential upside over Morgan Stanley’s ASP forecast for iPhone.
If early reports on demand trends indicate high iPhone demand versus low purchase expectations, Apple’s stock is likely to outperform in the short term, according to Morgan Stanley.
Key Needham launch events for Apple: Apple’s focus is on its interdependence of the ecosystem between new use cases and hardware upgrades, said Laura Martin, an analyst at Needham.
The company’s marketing strategy appears to be the use of up-to-date hardware features to target and pick up new passionate niche audiences through software, the analyst said.
Apple is expanding use cases of the “anchored tenant” to attract new long-term loyal customers to its ecosystem and then resell them other products and services, he said.
“Because many AAPL services are far ahead of competitors, it’s hard for these fandoms to leave the iPhone ecosystem.”
Apple’s package of integrated products and services is among the most economically valuable, and the focus on collecting global fandoms reduces quantity reduction, reduces customer acquisition costs, and increases your printing power. said Martin.
RayJay Optimistic on Apple drives, mix: The most important feature of the event was that subsidies to U.S. companies look even more aggressive than last year, providing incremental optimism about units and the mix, said Raymond James analyst Chris Caso .
The analyst said the main incremental features of this generation of iPhone were battery life and improved cameras, features that have best resonated among consumers.
The memory load increased for the lower-end iPhone 13 and 13 Mini models, though the higher-end memory load did not change, he said.
Case said the next important event will be to see sales and product availability from the pre-order. Pre-orders begin this Friday, and all models are scheduled to be available Sept. 24, according to RayJay.
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Apple classifications, price targets: Credit Suisse has a neutral rating and a target price of $ 150 for Apple shares.
Morgan Stanley maintained an overweight rating and a target price of $ 168.
Needham estimates that Apple shares a target purchase price and $ 170.
RayJay maintained an Operperform rating and a target price of $ 168.
AAPL price action: Shares of Apple gained 0.61% on Wednesday, closing at $ 149.03.