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As the Apple event approaches, there is a general consensus on the number of iPhones that Apple will introduce, the features they will have and the other gadgets that will be updated.
There is no unison, however, about the cost of new iPhones.
"Price points are really the biggest issue," said Andy Hargreaves, a financial analyst at KeyBanc Capital Markets, MarketWatch.
Apple
AAPL, -0.81%
launched the iPhone X at a minimum price of $ 1,000 last year, selling the smartphone as a big step forward for the tenth anniversary of the first iPhone. Rising prices added to Apple's already huge sales and profit this year, even as the company was selling roughly the same number of smartphones as the year before, bringing it to a historic $ 1 trillion valuation. dollars.
Apple introduced three iPhone versions for the first time at its latest launch event, and CEO Tim Cook is expected to follow a similar strategy on Wednesday at the company's headquarters in Cupertino, California. Reports indicate that Apple will probably introduce a cheaper phone that looks like the current iPhone X except with an LCD, which could be called the iPhone 9. The company is also planning an upgraded version of the iPhone X OLED also as an OLED phone with a 6.5 inch screen. At least one of them could be called the iPhone XS, and the biggest model could be called the iPhone XS Plus.
The ratings shared with MarketWatch showed expected prices ranging from $ 999 to $ 1,099 for the high-end iPhone model and from $ 699 to $ 849 for the cheaper LCD model.
Hargreaves said he would be surprised that the company is not raising the price of its new high-end phone, the 6.5-inch model, above $ 999. He estimates a starting price of $ 1,049 for this model, a base price of $ 949 for the upgraded iPhone X and a starting price of $ 749 for the LCD version.
Morgan Stanley's Katy Huberty, expects Apple to retain a base price of $ 999 for its most expensive phone, with the iPhone X upgraded to $ 899 and the version LCD at 669 dollars. price, the company could end up going higher with the three base prices.
Do not miss: here's what could happen to Apple's average selling prices during the next iPhone cycle
"The iPhone X being the best selling iPhone this year, despite the starting price of $ 999, we believe that Apple understands that consumers are willing to pay for a device and a superior user experience," notes Huberty. Price target of $ 245.
Hargreaves told MarketWatch that he would see no reason for Apple to waive higher prices, especially when a higher-end, larger-screen model could be worth more for the many fans. iPhone ready to pay for high-end devices.
With phones in the range of $ 1,000, an additional $ 50 is not likely to scare people away, he said, and it's a pure profit for Apple.
"The very high end of the Apple market is very inelastic," said Keybanc analyst, who assesses the stock at its sector weight. "They must maximize revenues and profits in a saturated market."
Read: How the habits of buying the iPhone have evolved over time, in a graph
Apple has collected more for each iPhone and, in general, consumers should pay more for an iPhone in the coming cycle than in the past. Analysts in general expect the average price of an iPhone to reach $ 757 for the 12-month period ending next September, compared to $ 752 for the period ending in September.
Goldman Sachs analyst Rod Hall believes the average price may be even higher: he expects consumers to spend an average of $ 793 on a new phone in the next fiscal year, up 5% from the previous year. at this year. He evaluates the stock at a neutral price with a price target of $ 240
"The lesson Apple learned last year was that if you sell high-end smartphones at a high price, you can sell a lot fewer units while still retaining the financial benefits," says DA Tom Forte, analyst at Davidson. , told MarketWatch. He values the stock at purchase with a target price of $ 265.
This year is part of an "S" cycle, however, when Apple refines and enhances features introduced the previous year. This year's cameras will likely have improved processors, better camera features, and perhaps a gold color option.
With Apple's latest Apple launch, the company began selling eight different iPhone models at once, wrote analyst Bernstein Toni Sacconaghi, who has been his biggest experience. The company will probably stop selling some of them when it launches its new range, but there is a debate about what will stay and what will happen.
Sacconaghi anticipates that the company will stop using the current iPhone X because it will want to attract customers to its new models. He thinks the company will keep the iPhone 8 and 8 Plus, but will lower the price by $ 100 each. "That's partly what allows us to believe that the iPhone 9 will cost around $ 799," he wrote.). "
He concedes that if Apple were to stop selling the iPhone 8 and 8 Plus, the company could decide to lower the price of the iPhone 9 to less than $ 799. The BOM of the iPhone 9 should theoretically cost more than the iPhone 8/8 Plus. "
Sacconaghi evaluates stocks in the market with a price target of $ 200.
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Although the iPhone is at the heart of Apple's September events, expect an update to the Apple Watch. Reports indicate that it will retain its square form factor but will have a more usable screen space, because it will have the same appearance without the telescope as that of the iPhone X.
"Regarding less certain ads," Bernstein's Sacconaghi said Apple fans might see an update to the AirPod headphones and an update to Apple's wireless charging pad a year ago. He expects an iPad Pro without a bezel during the September event, but said an update to MacBook Air might not be announced until October.
The company could also update its streaming efforts. Apple is increasingly interested in original content, and the company should eventually launch a multimedia offering including music, video and news.
Apple stocks rose 37% in the last 12 months and closed Friday with a market capitalization of $ 1.07 trillion. The Dow Jones Industrial Average
DJIA, -0.31%
which counts Apple as a component, grew by 19% during this period.
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