Apple (AAPL) shares are heating up again, ahead of the much-anticipated launch of the iPhone 13, which should be landing in September. The latest breakout past the $150 mark, though, came courtesy of a report that the next iPhone could have satellite connectivity.
Undoubtedly, such rumours of low-Earth orbit (LEO) communications have been swirling for quite some time now. But until Ming-Chi Kuo’s bombshell report, there wasn’t much clarity as to a timeline for when to expect such a feature from the iPhone.
It’s the timing of the report, with the iPhone 13 reveal likely just weeks away, and the caliber of the analyst who made the call, that sent Apple stock and satellite communications company Globalstar (GSAT) surging higher last Wednesday.
Whether or not iPhone users are in for the treat of LEO connectivity with the next iPhone, I remain incredibly bullish on Apple stock. (See AAPL stock charts on TipRanks)
Satellite Connectivity Could Be Game-Changing
Kuo is one of the most famed Apple analysts, and for good reason. He’s incredibly accurate, and he’s usually among the first to report what Apple is up to over in Cupertino.
Kuo’s track record isn’t 100%, though. Despite spot-on calls in the past, it’s important to remember that he has no crystal ball with regards to timing.
Last December, Kuo pushed back his timeline for the launch of the Apple Car, citing that the project is still in its early stages, making a launch before 2023 and 2025 less likely.
There’s no question that LEO satellite connectivity, which would allow an iPhone to make text messages or calls from outside the range of a telecom carrier, would be a needle-mover on Apple stock. We all want such a groundbreaking innovation to happen, and soon, even if LEO connectivity has limited availability upon launch.
Could the next major iPhone release hold such a surprise? Only time will tell.
Wall Street’s Take
According to TipRanks’ consensus analyst rating, AAPL stock comes in as a Strong Buy. Out of 24 analyst ratings, there are 18 Buys, and six Holds.
The average AAPL price target is $165.48. Analyst price targets range from a low of $132, to a high of $185.
Bottom Line
Few had LEO connectivity on their radars for the next iPhone.
It was Apple Car rumours that have been hogging the headlines over the past few years. If the iPhone 13 holds includes LEO advancements, consider it as a delightful surprise that raises the bar, re-solidifying Apple’s position as an innovator.
Disclosure: Joey Frenette owned shares of Apple at the time of publication.
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