In a note to clients, JP Morgan says that Apple’s unveiling of new iPhone models on Tuesday isn’t going to move the needle much for investors, suggesting “limited surprise” for the iPhone. Most of the attention will instead be focused on pricing and other potential hardware launches.
Announcements at the event related to the iPhone are “unlikely to be a material event for the shares,” analysts believe, given the unlikely possibility of surprise features arriving with the new models. Key watchpoints including 2019 iPhone pricing and other hardware announcements “have more opportunity to surprise relative to expectations,” the note to investors seen by AppleInsider states…
“While growth in Services revenue through leverage of the large and growing installed base is key to the investment story for Apple,” JP Morgan believes Apple can still continue to drive hardware revenue growth through increases in both volume and pricing for updated models, with new HomePods named alongside an Apple Watch refresh.
MacDailyNews Take: Obviously, ahead of 2020’s 5G iPhones, the iPhone is in maintenance mode this year, with Apple selling the camera system, speed increases, and, potentially, exclusive compatibility with a new Apple tracking device. More important for this year are services like Apple Arcade and Apple TV+ along with continuing the wild success of Apple Watch and AirPods.