Apple, Inc. (Nasdaq: AAPL) announced three major iPhone models and updates to the Apple Watch at its annual product launch event on Wednesday afternoon. Apple stock initially traded lower following a strong stretch for the stock in recent months, and analysts say the pullback is an attractive buying opportunity for long-term investors.
Apple unveiled its iPhone Xs, its next-generation high-end iPhone. The iPhone Xs will have the same 5.8-inch OLED screen that last year’s iPhone X had but will feature a newer, faster processor, up to 512 GB of storage space, an improved display, an additional 30 minutes of battery life and a revamped dual-camera system.
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In addition to the iPhone Xs, Apple announced the iPhone Xs Max. With a screen size of 6.5 inches, the Xs Max will be Apple’s largest iPhone. It will feature Apple’s largest and longest-lasting iPhone battery to-date with an additional 1.5 hours of charge time.
Finally, Apple rolled out the iPhone XR, a new lower-end model with a 6.1-inch LCD display.
Apple also announced the Apple Watch Series 4, which will have a 30 percent larger screen, more customization capabilities, updated apps and additional health features.
Device pricing could have a major impact on demand and margins for Apple. Apple said the Apple Watch Series 4 will start at $399 and the price of the Series 3 will be dropped to $279.
The iPhone XR will start at $749, the iPhone Xs will start at $999 and the iPhone Xs Max will start at $1,099. The iPhone Xs has the same $999 starting price as last year’s iPhone X, with the XR and Xs Max providing higher-and lower-price points for potential buyers.
Apple stock initially dipped 1.7 percent following the debut of the new iPhones, but Bank of America analyst Wamsi Mohan says long-term investors should keep the price action in perspective.
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“Shares may retreat a few percentage points the day after the event, but, in the past, shares have had positive price performance 60 days after the events, especially after major iPhone releases,” Mohan says.
“If perceived higher pricing is interpreted as a negative post event and the shares pull back, we would see that as a particularly attractive opportunity to buy the stock.”
Bank of America has a “buy” rating and $250 price target for AAPL stock.
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Market Is Unimpressed By 3 New Apple, Inc. (AAPL) iPhones originally appeared on usnews.com
