Apple’s 5G iPhone launch promises investors ‘unprecedented upgrade cycle’

Apple Inc. The product excluded virtual releases during the COVID-19 crisis, and now the company is developing one of the most important.

The smartphone is huge An online event is scheduled for Oct. 13, Which will launch the company’s first 5G-enabled iPhones. Apple AAPL,
+ 1.13%S
The new phones will come out a little later than they did in last year’s cycle, but the company is expected to have devices in stock during the holidays.

People have been holding their smartphones for a long time, and the most important question for Apple investors is whether 5G connectivity will be enough to run the big waves of upgrades. American carriers Continue to build their 5G networks, Early rolls of this new wireless standard will not bring much dramatic improvements to wireless speeds and regression times, which is the ultimate promise of 5G.

Nevertheless, Apple has indicated that its invitations to Tuesday’s event could be the main selling point of its new phones. The slogan for the launch, which starts at 1 p.m., is “Hi, Speed”. It is unknown whether Apple will support the millimeter-wave spectrum, The fastest type of 5G, Or whether the phones will be compatible with the Sub-6 5G, which is more widely available, but offers a step less compared to 4G networks.

From the September event: Apple releases cheap Apple Watch, subscription bundles and more

Apple is reportedly planning four “iPhone 12” devices. Many expect the company to launch two regular iPhone 12 models with 5.4-inch and 6.1-inch screen sizes, and two “Pro” versions with 6.1-inch and 6.7-inch screen sizes. Pro models may have a third camera on the back and 3-D lidar sensing, which allows for better-reality capabilities, says Deutsche Bank analyst Jerial Ong.

All four new phones must have a 5G connection, Ong wrote, naming the event “Hi, Speed.” Although Apple is increasingly moving towards larger shape factors, he expects the 5.4-inch model to remain popular with consumers as it still has a strong appetite for smaller screen sizes.

Ong expects Apple to reduce the price of older iPhone 11 devices and to offer six to eight different iPhone models while discontinuing some earlier versions.

Apple got its new iPhones 10 days after it was announced last year, but the releases of some models were delayed for a long time in 2018 and 2017. It is unknown at this time what he will do after leaving the post.

“Some models may control higher unit sizes or the new iPhone release may stumble as it did in previous years … Although this possibility seems to be fading, we have recently heard less about the possibility of further delays,” Ong wrote.

Production for all four models has already begun, says Katie Huberti of Morgan Stanley, who cites her supply chain checks, although smaller and larger models are two weeks late compared to the middle two models, he said.

Beyond the 5G and camera upgrades, Apple expects Huberti to emphasize its faster processor and new entry-level storage configurations.

From the Barons: Morgan Stanley says the iPhone release is a bigger deal than Wall Street thinks

Wetbush analyst Daniel Yves writes that Apple and its Asia supply chain “expect rapid demand for the larger 6.7-inch model,” which will help Apple run an “unprecedented upgrade cycle” as it currently estimates that 350 million iPhones are ripe. For updates.

In addition to releasing new iPhones, Apple may also launch tags that people can use to track physical objects using its own ear headphones, a smaller version of its homepot smart speaker, and Bluetooth.

Apple has seen a strong acceptance of its Airboats ear buds, and the company plans to eventually release headphones above the ear under its own brand. A The latest Bloomberg report Is the highlight of Apple Decision to pull out third party speakers and headphones Made by Sonos Sono,
Logitech International S.A. Loki,
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And Bose suggests that from its stores, the company may schedule announcements in those categories.

Referring to the new headphones, Ong of Deutsche Bank said that the change to Apple’s third-party sales strategy “could mean the immediate release of Airports Studios”, although it is not yet clear whether that will happen next week or later this year. ”

See also: Barclays strategist warns investors should reconsider Big Tech approach

Apple-branded Bluetooth trackers have been rumored for more than a year now, and some expect Apple to finally introduce “AirTax” at its upcoming event. These are trackers like tile offerings that allow people to place small tags on items such as a purse or their keys so they can use Bluetooth to locate these items in case of loss or theft.

The October 13 event follows one in mid-September, which saw the company Roll up new Apple watches, iPods and subscription bundles That Offering discounts to subscribers to multiple Apple services. Apple may offer some kind of bond with these new service bundles for buyers of new iPhones.

Morgan Stanley’s Huberti models Apple will ship about 78 million iPhones in the December quarter and 220 million units in the full fiscal year, ending next September.

Apple shares have accumulated 21% in the last three months, making the Dow Jones industry average DJIA.
+ 0.50%,
Apple is a component of this, which accounts for 9%.

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