Apple Inc. (NASDAQ: AAPL) on Tuesday unveiled new products and services at an event, which analysts noted as important in the company’s financial sector.
Apple analyst: Wesbush analyst David Ives did a better performance and repeated his 12-month $ 150 goal with a $ 175 bull case.
New product line key for FY21 earnings: Wesbusch said the latest product line of the Apple Watch, iPad Air and factory bundle will be a “key ingredient” in the success of the Cupertino-based company in the coming financial year and beyond.
Ives estimates that 10% of iPhone customers already own the Apple Watch and that Cupertino could enter customers on the existing upgrade trajectory over the next three years.
The analyst called the new services a “smart strategic move” bundle, which arrives at the “right time” and will help the Tim Cook-led company expand its golden established base to expand the core services segment by an incremental . 5-7% yearly.
iPad pricing emphasis demand: Loup Ventures analyst Gene Munster described Apple as a “master of turmoil” after the incident and raised the price of the iPad Air from $ 499 to $ 599 as evidenced by strong demand.
“We estimate that the total iPad lineup accounts for 11% of total revenue, with the iPad Air accounting for about 4%,” Munster wrote.
Munster estimates that Cupertino’s revenue on the services bundle plan will increase by 25% -50% per customer. Current revenue is around $ 500 million.
The new $ 9.99 a month fitness + app will also pitted the company directly against a home-fitness firm Peloton Interactive Inc (NASDAQ: PTON), according to Munster. The peloton has a 1.07 million-strong customer base.
Apple’s next generation iPhone 12 is likely to be available in four models and according to Ives the “Super Cycle” is likely to debut in early October. Analysts see the next release as the “once in a decade” iPhone cycle.
Price Action: Apple shares closed down 0.16% at $ 115.54 on Tuesday and gained nearly 0.7% in the subsequent session.
Latest rating for AAPL
|Soldier 2020||B of securities||Maintains||Neutral|
|Soldier 2020||J. P. Mourgan||Maintains||Overweight|
|Soldier 2020||Bank of america||Repeats||Neutral|
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