Analysts: Apple Event Largely Met Expectations Apart From One iPhone Surprise



On Wednesday, Apple (NASDAQ:AAPL) conducted the first of possibly two product events where it introduced improvements to its iPhone, Apple Watch, and AirPods lines. The event was “roughly in-line with expectations,” according to the investment firm Morgan Stanley, although there was one surprise.

The other iPhone 14 models will ship in late September, possibly due to production delays, said analyst Erik Woodring. He added that the October 7 launch of the iPhone 14 Plus was a little startling.

Woodring who has a $180 price target and an outperform rating on Apple (NASDAQ:AAPL) wrote to clients, “We see a limited impact to September [quarter] seasonality, especially given the other 3 iPhone 14 models are being released 1 week earlier than ‘normal,’ and maintain our forecast for 51M iPhone shipments in the September quarter.”

Another significant finding—possibly the most significant—was that Apple (NASDAQ:AAPL) kept like-for-like iPhone price “unchanged.” The new iPhone 14 Pro and iPhone 14 Pro Max start at $999 and $1,099, respectively, while the iPhone 14 and iPhone 14 Plus start at $799 and $899, respectively.

This is worth looking at, especially as the global economy weakens and concerns of a recession begin affecting consumer spending. Woodring continued, “While the consumer purchasing environment remains challenging (and a topic of discussion that has not yet been settled), we believe Apple remains best positioned to weather the storm.


Following the pricing announcements, the analyst increased his fiscal fourth-quarter and full-year revenue and profitability predictions by 1% to 3%. As a result, the analyst now anticipates that the average selling price of an iPhone will be $845 in the fourth quarter and $900 in fiscal 2023.

The stable pricing for the new iPhones was also criticized by Citi analyst Jim Suva, who rates Apple (NASDAQ:AAPL) as a buy and has a $185 price target. However, Jim Suva had a different take on the matter and was concerned that it would negatively affect market sentiment.

In a letter to clients, Suva wrote that “Apple maintained the pricing points across the range of devices offered… despite increasing component costs and supply chain costs, which we believe would likely impact investor concerns regarding margins.”

“Since the introduction, Apple shares have generally underperformed the broader market, and we do anticipate that shares may exhibit similar movements now that the event has concluded.”

In order to reduce the production gap between China and India, it was previously claimed that Apple (NASDAQ:AAPL) planned to begin making the iPhone 14 in India roughly two months following its release from China.

Featured Image-  Megapixl @Chrisdorney

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