Apple’s (NASDAQ:AAPL) global fanbase of iPhone lovers should be in for a treat this month. The tech giant will host a special event on September 12, where the latest iteration of its flagship product, the iPhone 15, is expected to be announced.
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Goldman Sachs analyst Michael Ng thinks the new release will provide the company with another tailwind.
“We believe that the ongoing investments in the iPhone 15, as well as the Apple ecosystem (e.g., iOS, Services, iPad/Mac/Watch compatibility) should drive further growth in the iPhone installed base through market share gains and minimizing churn,” said the analyst. “The iPhone 15 should drive price/mix increases in iPhone revenue reflecting like-for-like price increases on Pro/Pro Max (Ultra) as well as mix shift toward higher priced models.”
Ng anticipates Apple will offer 4 new iPhone 15 models: an iPhone 15 (6.1” device), an iPhone 15 Plus (6.7” device), an iPhone 15 Pro version (6.1”) and an iPhone 15 Pro Max that might be renamed Ultra (6.7”). Going by recent press reports, the base and Plus models’ pricing will stay the same, starting at $799 and $899 respectively, although the Pro and Pro Max models’ pricing could rise by $100, starting at a respective $1,099 and $1,199.
With several new features for the iPhone 15 Pro and Pro Max – A17 chip (the first to utilize the 3nm process, offering a faster and more power-efficient unit), improvements to the design and battery life, upgraded USB-C port, and a new periscope lens (for the Pro Max only) – the higher-end models should see plenty of demand and “help drive premiumization.” Ng expects the new models will be available on September 22 but also notes that due to image sensor supply issues, there could be “potential delays” for the iPhone Pro Max units.
New iPhone aside, the Apple Watch Series 9 should also get an unveiling at the event, and per reports, will come with a new S9 processor that offers better performance and improved battery life. Apple likely will also probably launch a new AirPods Pro that comes with a USB-C port.
So, great news for Apple fans, but what does it all mean for investors? All told, Ng maintains a Buy rating on the shares to go alongside a $222 price target, suggesting upside of 17% from current levels. (To watch Ng’s track record, click here)
Elsewhere on the Street, the stock garners an additional 21 Buys and 8 Holds, all coalescing to a Moderate Buy consensus rating. The average target stands at $208.13, representing one-year gains of ~10%. (See Apple stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
