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Apple: Thoughts Ahead of iPhone 14 Launch
Stock Analysis & Ideas

Apple: Thoughts Ahead of iPhone 14 Launch

Is now the right time to bring to market the latest version of a flagship product? With Apple’s (AAPL) “Far Out” event about to take place (Wednesday, September 7) – which should see the launch of the new iPhone 14 lineup – that is the question posed by Monness’s Brian White.

“In our view, Apple’s portfolio has never been stronger and its platform more ubiquitous,” the 5-star analyst complemented, before adding, “however, the macro environment is disconcerting, and we question if consumers are in the mood to splurge on a new smartphone (or any tech gadget).”

The launch this year comes a week ahead of last year’s event, and White anticipates pre-orders for the iPhone 14 lineup will start this Friday (9/9) with availability on September 16. As the fiscal year ends on September 24, Apple will be able to squeeze some revenue juice that will be included in 4QFY22’s haul.

This explains why Apple might have brought the launch date forward compared to last year when the iPhone 13 family was made available on September 24, 2021, only one day before the fiscal year’s end. This fits in with Apple commentary regarding “qualitative guidance of accelerating YoY revenue growth” in the quarter, although White is not sure it is a great strategy. “While an early launch scenario should be positive for 4Q:FY22 revenue, we expect it will weigh on sales in future quarters,” the analyst explained.

The analyst thinks the past two years’ launch template will be repeated with four iPhone 14 models, including two standard, cheaper models, and two, higher-end, more expensive Phone 14 Pros, although there’s no room for the 5.4-inch iPhone mini (media reports suggest a new 6.7-inch iPhone 14 Max will take its place).

While White does not think the latest versions will come with any “groundbreaking” features – improved camera capabilities are probably on the menu and according to media reports, the two iPhone 14 Pro models will be equipped with the new A16 Bionic chip – he anticipates Apple’s marketing machine will go into “overdrive” in an attempt to “overpower this economic malaise.”

It remains to be seen whether Apple manages to do so, and much will depend on pricing. Given the present “inflationary crisis and more hesitant consumer,” White thinks this could be a controversial issue; therefore, it will be interesting to see how Apple deals with this “sensitive topic.”

Down to the nitty-gritty, what does it all mean for investors? White sticks with a Buy rating and $174 price target, suggesting one-year upside of 12%. (To watch White’s track record, click here)

Most analysts back White’s stance; the stock claims a Strong Buy consensus rating, based on 22 Buys, 4 Holds and 1 Sell. Going by the $183.12 average target, the shares will climb ~18% higher over the coming months. (See Apple stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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