Apple
AAPL
is set to host an online event on Oct 13 where it is reportedly set to unveil new iPhones, including those supporting 5G.
Markedly, Apple guided during its third-quarter fiscal 2020 earnings call that sale of new iPhones will begin a few weeks later against the usual late-September release attributed to supply-chain issues caused by the coronavirus pandemic.
Apple has been speculated to launch four new iPhone models that include two cheaper iPhone 12 models at 5.4 inches and 6.1 inches, and two iPhone 12 Pro models with 6.1-inch and 6.7-inch screens. Notably, the 5.4-inch phone will be the smallest iPhone since the iPhone SE was released in 2016 and the 6.7-inch model is the biggest ever.
Per a Bloomberg report in April, the iPhone 12 Pro models are expected to have three cameras and new 3D LIDAR sensors that help with augmented-reality applications. The upcoming iPhones are expected to have a different design.
Further, per another Bloomberg report in September,
Apple is targeting to sell at least 75 million iPhones
in 2020 reflecting the company’s anticipation that demand for its flagship device continues to remain robust amid coronavirus-led disruptions.
Apple Riding on iPhone, iPad and Mac Demand
Apple has outperformed the S&P 500 composite year to date. While the shares have rallied 54.1%, the S&P 500 returned 4.5%. The outperformance can be attributed to solid adoption of iPhone, iPad, Mac and Apple Watch.
Markedly, iPhone sales inched up 1.7% year over year to $26.42 billion in fiscal third-quarter 2020 and accounted for 44.3% of total sales. The growth was driven by strong demand in May and June, primarily for iPhone SE. Apple expects fiscal fourth-quarter iPhone sales to benefit from strong demand for iPhone SE. The launch of the new iPhones is expected to further boost shipment.
Moreover, iPad and Mac are expected to post strong year-over-year growth. Notably, the company recently expanded its iPad portfolio with the addition of new iPad and iPad Air, which it unveiled at the Time Flies event on Sep 15.
Further, Apple updated the 13-inch MacBook Pro with the new Magic Keyboard and doubled the storage across all standard configurations. The new line-up also offers 10th-generation processors for up to 80% faster graphics performance and makes 16GB of speedy 3733MHz memory standard on select configurations.
Apple’s Mac sales are also expected to have been positively impacted by the remote-working and learning wave. Per Gartner data, Apple saw its
Mac shipment volumes
expand 5.1% year over year in the second quarter.
Notably, the company will launch Macs that use Apple’s custom silicon late this year. The complete transition from Intel
INTC
-based Macs is expected to take a couple of years.
Apple Watch and Apple One: Key Catalysts
Meanwhile, the company’s newly launched Apple Watch Series 6 and Apple Watch SE are expected to boost its wearables market share.
Notably, per IDC’s latest report,
Apple continues to dominate the wearables market
with 34.2% share in second-quarter 2020. Huawei, Xiaomi, Samsung and Fitbit trail with 12.6%, 11.8%, 8.3% and 2.9% market share, respectively.
Further, the launch of Apple’s newly announced bundle-subscription pack, Apple One Premier plan, is expected to help this Zacks Rank #3 (Hold) company push services adoption and boost service revenues against the likes of Amazon
AMZN
and Disney
DIS
. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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