Apple (AAPL) is embracing facial recognition with its new more affordable iPhone.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
The iPhone 16e, which begins shipping today (Feb. 28), will use face identification as its main biometric security feature, removing fingerprint technology, or “Touch ID,” that has long been one of the main ways in which people access the smartphone.
Apple’s new iPhone is aimed at more budget-conscious consumers and will reportedly focus exclusively on Face ID to unlock the device. Analysts say that facial recognition is the most effortless way of authenticating a user’s identity, although some civil rights groups claim it is a further incursion into people’s privacy.
A Test of Consumers?
Some analysts are saying that Apple might be using the iPhone 16e to test consumers’ interest and appetite for more advanced biometric security features and that fingerprint scanning is likely to continue being offered on future devices from the company.
Still other analysts see the move away from fingerprint scanning as pragmatic on the part of Apple, noting that facial recognition is likely to appeal to people who want more screen space on their devices. In past iPhones, Apple’s Touch ID fingerprint sensor was integrated into the device’s home or power button, taking up space on the bottom of the screen.
AAPL stock has risen 32% over the last 12 months.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 33 Wall Street analysts. That rating is based on 18 Buy, 11 Hold, and four Sell recommendations assigned in the last three months. The average AAPL price target of $250.48 implies 5.64% upside from current levels.
