According to multiple media reports, technology giant Apple (AAPL) is developing a new entry-level iPhone that’s aimed at budget-conscious consumers.
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Barron’s and other publications are reporting that Apple is planning to launch a new low-end iPhone by early next year as it loses market share to cheaper devices, notably in China. The new iPhone, codenamed the “V59” internally at the company, will become Apple’s new entry-level device.
The budget iPhone will have a new home button design and an edge-to-edge screen, according to reports that cite unnamed internal sources at Apple. The new, more affordable iPhone will also replace the iPhone SE model that has long been the company’s lower-end smartphone. The iPhone SE was last updated in 2022.
Apple’s Declining iPhone Sales
News that Apple is rushing a more affordable iPhone to market coincides with reports that demand is weak for the company’s new iPhone 16 that launched in September of this year. Despite the promise of new artificial intelligence (A.I.) features, initial sales of the iPhone 16 have been sluggish, according to industry data. Analysts blame weak consumer spending and increased competition for the poor sales.
The iPhone remains Apple’s most important device, with sales generating more than half the company’s annual revenue. But sales of the smartphone have steadily declined since 2022 as Apple faces increased competition from Alphabet’s (GOOGL) Pixel smartphone, as well as phones made by domestic Chinese companies such as Huawei and Xiaomi (HKG:1810).
AAPL stock has risen 32% in the last 12 months and currently trades at $225.65 per share.
Is AAPL Stock a Buy?
Apple stock has a consensus Moderate Buy rating among 34 Wall Street analysts. That rating is based on 24 Buy, nine Hold, and one Sell recommendations made in the last three months. The average AAPL price target of $248.07 implies 9.91% upside potential from current levels.
