With the launch of three new iPhones, Apple is looking at every corner of the smartphone market

A year after introducing the most expensive iPhone ever, Apple Inc. is expected to unveil three new devices this week for all smartphone markets. Once again, all eyes will be fixed on the proposed price tags.

Drawing on reports from websites of tech rumors and information sites, Wall Street is looking for the first US $ 1 trillion company to come up with three new variants of the company. 39, iPhone – at three different price levels.

While Apple watches, iPad Pros and wireless chargers will also be updated this week, the iPhone line, which accounts for 62% of Apple's revenue last year, will be examined more closely by analysts at of the "Meeting" event Wednesday on the company's new campus in Cupertino, California.

The company typically reveals new generations of iPhones in September, but the anticipated release of three phones this week at differentiated price levels would mark a change in Apple's strategy. According to analysts, this decision could open more consumer segments, as the company continues to steadily increase its prices in order to boost revenue growth. The launch comes after the company warned in a letter to US trade officials last week that the proposed tariffs on Chinese products would affect the prices of a "wide range" of Apple gadgets. The iPhone was not specifically mentioned in the letter.

The launch of the full screen iPhone X last year was followed by months of speculation that demand was disappointing. But CEO Tim Cook said in a conference call in May that it was the first phone launched since the iPhone 6 Plus in 2014 in which "the high-end model of iPhone was also the most popular. Its most expensive device helped push Apple's average selling price (ASP) for the iPhone by 20% to $ 724 during the quarter ended June 30th.

Apple aims to maintain this momentum. The three phones expected this week include a 6.1-inch LCD iPhone and more advanced models of 5.8 inches and 6.5 inches. Analyst T. Michael Walkley, Canaccord Genuity, said in a recent study that the three-pronged approach could help the company "continue its cycle of upgrading to higher-margin and stronger ASP iPhones." margin".

At its launch last year, the iPhone X had a base price of $ 999. An analysis by Morgan Stanley suggests that if a new low-level iPhone was selling for between $ 699 and $ 799 and that a big screen and a high-level model cost just over $ 999, the ASP's range of products could increase from 2 to 7. percent

A Morgan Stanley study suggests that over the past two years, consumers have kept their phones longer, replacing them every three years rather than both. It's thanks to superior devices and a change among wireless operators, far from phone subsidies and two-year contracts, the firm says. But Katy Huberty, an analyst at Morgan Stanley, said on Friday that there is still plenty of reason to believe that Apple would like to raise prices.

Given the strong demand for the iPhone X, she said, "we think Apple understands that consumers are willing to pay for a superior device and user experience." Ms. Huberty has a target price of $ 245 for the title, which closed Friday at $ 221.30.

"A big picture, Apple's market share is not growing," said Gene Munster, a long-time Apple analyst, in an interview with Loup Ventures. "The smartphone market is not growing, but … they are growing in proportion, about 18% in the world, but they can continue to grow their business by increasing the ASP, and I think the strategy of three phones is representative of this objective. "

But if Apple chooses a less expensive strategy on some models, it could also benefit the company by increasing its phone replacement rate. Canaccord Genuity has forecast a replacement rate for the 2019 calendar year of 26.5%, but Mr. Walkley said the rate could easily rise if Apple lowered the prices of some phones.

"With a mature smartphone market, we believe that Apple has captured a significant share of the smartphone market and will continue to dominate the sales of high-end smartphones and capture the vast majority of smartphone profits for the next few years." said Mr. Walkley, "he said.

However, analyst Tim Long of BMO Capital Markets warned at the end of July that once iPhones' average selling prices normalize, "we expect unit growth to return."

According to other analysts, as a title, Apple may be able to generate weak iPhone revenue growth as long as revenue from its service activities, including Apple Music, App Store and Apple Pay, will continue to grow. Morgan Stanley, for example, predicts that services will account for over 60% of business revenue growth over the next five years.

Mr. Munster stated that "as long as the [iPhone] business is stable, representing a 0 to 5% growth in revenue … it's a sign of a healthy foundation. And I think investors are more interested in what can happen with services and other bets, including content and [augmented reality] and mobility, clothing, and also how much money they recover. "

Regarding the threat of the US trade battle with China, US President Donald Trump tweeted Saturday his favorite solution: "Apple prices could increase because of the imposing tariffs we impose on China. Zero tax, and even a tax incentive. Make your products in the United States instead of China. Start building new plants now.

With a Reuters report