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What Do Analysts Think of Apple’s New Products?

Following one of the most highly anticipated unveilings in years, Wall Street analysts remain largely optimistic about Apple’s future, despite shares falling 0.4% after its presentation of new products was done.

Apple was under tremendous pressure to offer a new suite of products which would live up to consumer expectations.

Tim Cook, Apple’s Chief Executive Officer revealed the company’s newest product offerings, inclusive of iPhone 8 and 8 Plus, iPhone X, a new Apple Watch and an upgraded Apple TV 4K streaming box.

Analyst, Michael Olson, from Piper Jaffray Cos remarks that the tenth anniversary of the iPhone required the company to deliver a device with upgraded features, stating that “Apple generally met these lofty expectations”.

“Most notably, we would point to the change in form factor (edge-to-edge, glass OLED screen) and 3D sensing (enabling facial recognition) as the key upgrades”.

Mr Olson also affirms that Apple remains a good portfolio acquisition, stating, “We recommend owning Apple due to potential for a strong iPhone upgrade cycle and a favorable trajectory for services revenue”.

Drexel Hamilton Analyst, Brian White, believes that the company’s run will not end with the recent iPhone event, and that the organisation does retain positive potential:

“Apple’s stock will not only benefit from the upcoming iPhone cycle, but also the company’s capital distribution initiative, attractive valuation and potential new innovations. As such, we do not believe Apple’s run will end with today’s iPhone event, but still has attractive upside potential”.

Gene Munster, Analyst from Loup Ventures, states that the technologies embedded in the new iPhone will solidify the company’s repution, and enable it to grow from strength to strength:

“The iPhone X has advanced 3D-sensing, display, camera, and augmented reality technologies that have never been available in consumer devices. These technologies solidify the platform on which Apple will retain and grow its user base for the next decade”.

“We were hoping to see advanced AR sensors on both the front and the rear of the new device, but the new, advanced sensors are primarily relegated to the iPhone X’s front.”

Regarding shipping, Apple’s new iPhone X (pronounced ‘ten’) will ship later than analysts projected, however, they do believe it won’t have a notable impact on overall sales numbers.
Mr Munster states, “IPhone X will ship on November 3, roughly six weeks after we had previously expected. The ship date likely won’t have a material impact on the number of units sold, but will push some unit sales into the March quarter.”

Pricing

Regarding pricing, pre-orders for the iPhone 8 will commence at 6:01PM AEDT on September 15th, and arrive in Australia on September 22nd. Both models will come in silver, gold and space grey.

Below is the Australian pricing for the iPhone 8 devices:

  • 64GB 4.7-inch iPhone 8 starts from $1079
  • 256GB 4.7-inch iPhone 8 will cost $1329
  • 64GB 5.5-inch iPhone 8 Plus starts from $1229
  • 256GB 5.5-inch iPhone 8 Plus will cost $1479

Below is the Australian pricing for the iPhone X (pronounced ‘ten’), which will ship to Australia on November 3rd. Pre-orders for the flagship device will start at 6:01PM AEDT on October 27th. The device will come in silver and space grey.

  • 64GB iPhone X will cost $1579
  • 256GB iPhone X will cost $1829

Pre-order offers for pricing from Australian carriers as Telstra, Vodafone and Optus are yet to be released, however, is likely to be revealed very soon.

Whilst the pricing of the device is definitely high-end, consumers’ reaction to the device has largely been one of excitement, especially as Apple bring the notion of “just a screen in your hand” one step closer. The high-end price tag was arguably pioneered by Samsung through its recent high end devices, which analysts state wil rival each other for holiday season sales. Ultimately, whilst consumers and analysts are largely pleased with the new devices, it’s too soon to identify what the influence of the higher pricing will be on sales, just yet.

US carriers have already begun offering subsidy discounts in a bid to lure customers and reduce some of the monetary objections to purchasing the new device. T-Mobile has invited customers on a pricing plan to trade in their iPhone 6 (or newer) for a $300 discount over 24 months. Dominant US carriers AT&T and Verizon have not yet disclosed their pricing plans.

Stay tuned for further analyst commentary about Apple’s newest iPhones.

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