Apple Inc (NASDAQ:AAPL) has unveiled its much awaited new range of iPhone smartphones after having delayed the original launch due to the coronavirus pandemic.
On Tuesday, the tech giant announced four new devices, all of which incorporate 5G mobile internet in a first for the firm, however it was also said that none of the phones will ship with headphones or a power adaptor, ostensibly to reduce the carbon footprint.
The mid-range model, named simply the iPhone 12, will be priced from £799 in the UK and US$799 in the US and will be available from October 23.
Other products making their first appearance at the launch event included the HomePod mini, a smaller version of Apple’s HomePod smart speaker, which will be priced at £99 in the UK and US$99 in the US and will be shipping on November 16.
In a note on Tuesday, analysts on Wedbush, which rate Apple at ‘outperform’ with a US$150 price target, highlighted that Apple and its Asian suppliers were anticipating “stepped up demand” for the larger 6.7-inch screen model of the new iPhone, which they said is “raising the overall iPhone 12 expectations heading into this “once in a decade” potential launch”.
The broker also highlighted that demand from China is the “linchpin to Apple’s 5G supercycle”, estimating that roughly 20% of iPhone upgrades will come from the region in the coming year.
“To this point we are seeing considerable strength from the China region over the last few months (should be a source of relative strength in the September quarter) with positive trends heading into the all-important holiday timeframe”, Wedbush said.
“In a nutshell, while services growth remains the key to the Apple re-rating story over the past six months, the hearts and lungs of the Apple growth story are built around iPhone installed base upgrades. With 5G now in the cards and roughly 40% of its “golden jewel” iPhone installed base not upgrading their phones in the last 3.5 years, [Apple CEO Tim Cook] & Co have the stage set for a supercycle 5G product release”, the broker added.
However, the launch event seemed to have left investors wanting, with shares in Apple mostly flat at US$121 in pre-market trading in New York on Wednesday, following a decline of around 2.7% in yesterday’s session.