Apple Inc. (NASDAQ: AAPL) has unveiled its most important new iPhone to combat the growing competition from Samsung Electronics Co., Google and a host of Chinese smartphone makers. Chief Executive Officer Tim Cook showed off the iPhone X with an edge-to-edge screen and pronounced the name “ten,” but it’s written as “X.” The device, has come after a decade the original model, which is AAPL’s first major redesign since 2014 and represents a significant upgrade to the iPhone 7 line.
Moreover, the phone starts at $999 and comes in 64 GB and 256 GB storage versions. The pre-orders will start on October 27th and the phone will be available beginning November. The shares of AAPL have gained this year on expectations on their new phone, which could revamp their sales growth after a revenue fall last year. The iPhone accounts for almost two-thirds of total sales, and it’s a hub for most of Apple’s other products and services.
The iPhone X’s almost $1,000 price is potentially a psychological threshold for consumers that Apple will try to overcome with augmented reality features and other new technology. The expected innovations around AR, wireless charging, viewable screen size, OLED, and more, from the next iPhone is clearly poised for its largest upgrade cycle yet. Since the iPhone first launched, many of the innovative features, which it first brought to the market are no longer unique and several of those rumored to be on the iPhone X are already in existence. However, the device is water resistant or have facial recognition software.
Meanwhile, of the 38 Wall Street analysts covering AAPL, two already have price targets for the stock that see it driving above the $1 trillion level. Brian White of Drexel Hamilton, whose $208 price target for the shares is highest on the Street and would equate to a $1.075 trillion market value at the current number of shares outstanding.
Morgan Stanley’s Katy Huberty considers Apple’s new phone lineup has the potential to become the next killer app that accelerates smartphone upgrades and drives increased services monetization and growth. Her current price target of $182, which is 13 percent above Tuesday’s closing price of $160.86, would equal a market value of about $940 billion.
AAPL stock has risen 37.2% in this year to date (as of 1:01PM EDT on September 13th, 2017; Source: Google Finance).