Apple’s (NASDAQ:AAPL) anticipated announcement of its next flagship product, the iPhone, is just around the corner. The unveiling of the iPhone 15 is expected to take place during the annual Apple event, which is currently slated for September 12th.
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The iPhone’s continued success is not to be sniffed at, says Evercore analyst Amit Daryanani. “The durability of iPhone growth in recent years has surprised investors as the consensus view a few years ago was that the iPhone had peaked,” the 5-star analyst said. “The broader smartphone market has certainly peaked, but Apple has shown an impressive ability to gain share both domestically and abroad.”
The gains ahead might not be quite as abundant, with the uptick seen during 2021 and 2022 based on market share in China rising from 25% in 2020 to 38% in 2022. Now that Apple has about 75% of Chinese market share in the $600+ price bracket, maintaining growth there will be difficult. “Instead,” says Daryanani, “we see iPhone share gains through 2027 being driven by emerging markets (especially India) and the enterprise market.”
Anticipated growth aside, a new release always gets plenty of attention, so what’s to be expected from the new version? Daryanani sees the iPhone 15 being “more of an evolutionary product vs. a revolutionary one.”
For the base models (iPhone 15 and 15 Plus), reports suggest they will be upgraded to the A16 chipset, while the cameras are due to get major upgrades.
For the Pro models, apart from a new display manufacturing technology called ‘LIPO’, that should increase display size, there will also be an upgrade to AAPL’s latest A17 bionic chipset (3nm). Apparently, it is “noticeably faster” than the A16 and will probably come with a boost to battery life.
One new change expected for both base and Pro models, is that the currently used lightning connectors will be replaced by USB-C connectors.
It all points to a successful new product, says Daryanani. “Net/net,” he summed up, “The iPhone 15 is set to bring design and feature updates, and we think that the design changes + 3nm chipset + USB-C will not only drive device refresh, but also drive a higher ASP mix via both 1) higher pricing and 2) incrementally convincing consumers to spend more and purchase the Pro models vs. the base models.”
All told, Daryanani rates Apple shares an Outperform (i.e., Buy) alongside a $210 price target. If it gets there, AAPL could deliver returns of 18% a year from now. (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.
