If Apple is the company with the highest market capitalization on Wall Street, much of this fortune owes to the iPhone. It is on the shoulders of the longest-lived smartphone in the world that the Cupertino company has grown, year after year. And despite recent attempts, not too hidden, to differentiate the business model by playing new games on streaming tables, subscriptions and various services, iPhone is still the host, with 191.9 billion annual revenues in 2021 out of a total. of 365 billion.
The event of the year
And then there is little doubt that the launch of the new device is the most awaited event by fans, but also by analysts. On Thursday, September 7, Apple launched the iPhone 14, presented to the world during the classic keynote held in Cupertino. The impact of this new device on the title is a nice question mark. In the past decade, Apple’s stock has fallen seven times on the day the company launched a model. Historically, then, there has been a rebound a couple of months after the event, with the arrival of the first sales figures. However, after the iPhone’s last two announcements, this respite is a bit missed. Apple does not appear to have taken shareholder-friendly measures, such as raising prices. A move that could protect margins from inflationary pressures. However, it’s a time of great weakness for the global economy, and that could have made shoppers reluctant to pay more for a phone.
The expectation of the markets
In short, there is a lot of expectation now among analysts to understand how the market will react. In 2021, according to some estimates, the iPhones sold globally were 242 million, bringing about $ 192 billion into Apple’s coffers. This year, thanks to the winds of crisis, the strong dollar and inflation, another game could be played. The future is full of unknowns and pitfalls, in short, but it is not excluded that Apple will bet once again on its smartphone to recover that 15% of losses accumulated since the beginning of the year, and to return to float around a record market cap: 3 trillion dollars.
What Apple presented
But here’s what Apple presented. Let’s start with the iPhones, with the arrival of the 14 family. There will be four models on the market: two more performing versions (14 Pro and 14 Pro Max) and two basic ones (14 and 14 Plus). Starting price for the base model: $ 799 in the United States, which is the same price as last year for the launch of the iPhone 13. Alongside the new smartwatches. In this case, the new models, in addition to the predictable new Watch 8, also make room for a cheaper model (Watch Se 2022) and an absolute novelty, a Watch Ultra, larger and also with features dedicated to those who practice sports (even extreme ). The latter model will cost $ 799 (also in the US), while the Watch 8 has a starting price of $ 399. Among the new devices, there are also new headphones: second generation AirPods Pro with a new microprocessor. Word, now, to the shareholders.