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Apple (AAPL) Launches Most Affordable iPhone to Attract Customers
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Apple (AAPL - Free Report) recently announced the launch of its most affordable iPhone SE with an A15 Bionic chip.
The new third-generation iPhone SE is priced at $429, which is $30 more than the second-generation iPhones. However, the latest model is the most durable iPhone SE ever launched and is equipped with the latest technology to provide robust performance; hence the price increase is negligible.
The new iPhone SE features a more durable design, 12MP camera with Deep Fusion and powerful computational photography technology, photographic styles similar to iPhone 13, Smart HDR 4 and IP67 water resistance and 5G technology.
The primary target markets for the new iPhone SE are expected to be the United States, Japan and Western Europe, since historically these have been the top markets for iPhone SE sales.
Although iPhone sales have been benefiting from higher average selling price (ASP), premium pricing has been blamed for Apple’s declining market share in countries like China and India. With the launch of the most affordable model of the iPhone, Apple expects to attract cost-wary customers and win back lost market share.
iPhone sales increased 9.2% in the first quarter of fiscal 2022 from the year-ago quarter to $71.63 billion and accounted for 57.8% of total sales. iPhone sales were driven by strong demand for the iPhone 13 family of devices.
In the year-to-date period, the company’s shares have fallen 11.3% compared with the Zacks Computer-Mini Computers industry’s and the Zacks Computer and Technology sector’s decline of 10.2% and 19.2%, respectively.
Apple’s Focus on 5G Capabilities to Drive Prospects
Apple has been committed to bringing 5G capabilities to its flagship products, which began with the iPhone 12 and continued with the launch of the latest iPhone SE.
However, according to a Reuters statement, most countries are still not equipped with proper 5G facilities; thus, Apple products might not be able to create a unique and differentiated experience amid the competition.
Apple’s launch of the new 5G-enabled iPhones is more of a strategy to leverage 5G connectivity facilities when the technology evolves in the next two years.
The company has been historically blamed for losing market share in countries like China and India due to premium pricing. However, with the launch of the new cost-effective iPhones, the company is expected to see growing demand for its flagship product.
Axcelis shares have fallen 16.6% in the year-to-date period compared with the Zacks Electronics - Manufacturing Machinery industry’s and the Computer and Technology sector’s decline of 19.5% and 19.2%, respectively.
Celestica shares have gained 3.1% in the year-to-date period against the Zacks Electronics - Manufacturing Services industry’s and the Computer and Technology sector’s decline of 17.9% and 19.2%, respectively.
Advanced Micro Devices (AMD - Free Report) is a Zacks Rank # 1 stock.
AMD shares have slumped 26.7% in the year-to-date period compared with Zacks Electronics - Semiconductors industry’s and the Computer and Technology sector’s decline of 20.8% and 19.2%, respectively.
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Apple (AAPL) Launches Most Affordable iPhone to Attract Customers
Apple (AAPL - Free Report) recently announced the launch of its most affordable iPhone SE with an A15 Bionic chip.
The new third-generation iPhone SE is priced at $429, which is $30 more than the second-generation iPhones. However, the latest model is the most durable iPhone SE ever launched and is equipped with the latest technology to provide robust performance; hence the price increase is negligible.
The new iPhone SE features a more durable design, 12MP camera with Deep Fusion and powerful computational photography technology, photographic styles similar to iPhone 13, Smart HDR 4 and IP67 water resistance and 5G technology.
The primary target markets for the new iPhone SE are expected to be the United States, Japan and Western Europe, since historically these have been the top markets for iPhone SE sales.
Although iPhone sales have been benefiting from higher average selling price (ASP), premium pricing has been blamed for Apple’s declining market share in countries like China and India. With the launch of the most affordable model of the iPhone, Apple expects to attract cost-wary customers and win back lost market share.
iPhone sales increased 9.2% in the first quarter of fiscal 2022 from the year-ago quarter to $71.63 billion and accounted for 57.8% of total sales. iPhone sales were driven by strong demand for the iPhone 13 family of devices.
In the year-to-date period, the company’s shares have fallen 11.3% compared with the Zacks Computer-Mini Computers industry’s and the Zacks Computer and Technology sector’s decline of 10.2% and 19.2%, respectively.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple’s Focus on 5G Capabilities to Drive Prospects
Apple has been committed to bringing 5G capabilities to its flagship products, which began with the iPhone 12 and continued with the launch of the latest iPhone SE.
However, according to a Reuters statement, most countries are still not equipped with proper 5G facilities; thus, Apple products might not be able to create a unique and differentiated experience amid the competition.
Apple’s launch of the new 5G-enabled iPhones is more of a strategy to leverage 5G connectivity facilities when the technology evolves in the next two years.
The company has been historically blamed for losing market share in countries like China and India due to premium pricing. However, with the launch of the new cost-effective iPhones, the company is expected to see growing demand for its flagship product.
Zacks Rank and Other Stocks to Consider
Apple currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are some other top-ranked stocks worth considering in the broader Computer and Technology Sector.
Axcelis Technologies (ACLS - Free Report) flaunts a Zacks Rank #1.
Axcelis shares have fallen 16.6% in the year-to-date period compared with the Zacks Electronics - Manufacturing Machinery industry’s and the Computer and Technology sector’s decline of 19.5% and 19.2%, respectively.
Celestica (CLS - Free Report) carries a Zacks Rank #1.
Celestica shares have gained 3.1% in the year-to-date period against the Zacks Electronics - Manufacturing Services industry’s and the Computer and Technology sector’s decline of 17.9% and 19.2%, respectively.
Advanced Micro Devices (AMD - Free Report) is a Zacks Rank # 1 stock.
AMD shares have slumped 26.7% in the year-to-date period compared with Zacks Electronics - Semiconductors industry’s and the Computer and Technology sector’s decline of 20.8% and 19.2%, respectively.