Apple’s (AAPL) future iPhones may come with a different charging port connector, according to a Bloomberg report. In addition to the iPhone smartphone line, Apple makes a variety of other devices such as tablets and laptops. Apple stock rose more than 3% to close at $147.11 on May 13.
From Lightning Connector to USB-C Connector
The current iPhones use the “Lightning” connector for charging and data transfer. However, in the future, iPhones may use the USB-C connector instead. According to the report, the shift comes in response to a looming EU regulation that would require smartphones and other devices sold in the bloc to have a USB-C port.
The USB-C port is an industry standard, used in products such as Android phones. It is also the connector used in most of Apple’s iPad tablets and Mac computers. Bringing the USB-C port to the iPhone would streamline charging and data connectors across various Apple products. The iPhone with the USB-C port could arrive in 2023 at the earliest.
Potential Loss of iPhone Accessories Market Control
However, such a shift could reduce Apple’s control of the iPhone accessories market, according to the report. Apple charges accessory makers to use its Lightning connector technology. However, it may be difficult to obtain such payment from accessory makers if iPhones shift to the standard USB-C port, which could put some revenue at risk.
Wall Street’s Take
Consensus among analysts is a Strong Buy based on 20 Buys and six Holds. The average Apple price forecast of $189.40 implies upside potential of about 29% to current levels.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 88% Bullish on AAPL, compared to a sector average of 68%.
Key Takeaway for Investors
While changing the iPhone charging system from the Lightning connector to USB-C may result in the loss of iPhone accessories market control for Apple, it could boost customer experience. That is because USB-C connectors support faster charging and data transfer than Lightning connectors. Such a move would also make connectors more compatible across Apple devices.
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