Apple Stock: Cheaper 5G iPhone Introduced

Consumer electronics giant Apple (AAPL) on Tuesday introduced a lower-priced 5G iPhone aimed at cost-conscious consumers interested in the faster wireless service afforded by fifth-generation cellular technology. It also debuted a new high-end Mac computer for creative professionals. Apple stock fell after the company’s spring product launch event.

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The third-generation iPhone SE is the company’s new entry-level 5G smartphone. It’s the first update to the iPhone SE handset in two years. The new iPhone SE starts at $429 and will be available on March 18. That’s more expensive than the second-generation model, which started at $399. Many analysts had expected the new iPhone SE to start at the same $399 price.

The current cheapest 5G iPhone, the iPhone 12 Mini, costs $599. Apple’s second-generation 5G smartphones, the iPhone 13 series, start at $699.

“At $429, the price for the base iPhone SE 5G is slightly more expensive than the 2020 iPhone SE as well as phones from rivals Samsung and Xiaomi,” GlobalData analyst Anisha Bhatia said in a report. “But Apple has a huge installed base of legacy iPhone users still waiting to upgrade. With carrier promotions and discounts, the iPhone SE 5G is all set to carry on Apple’s 5G supercycle.”

The new iPhone SE sports a faster processor, Apple’s A15 Bionic chip, and has improved cameras and battery performance. The A15 Bionic is the same chip used in Apple’s flagship iPhone 13 handsets.

Apple Stock Wavers After Event

“From the very beginning, we designed iPhone SE to include some of our most advanced features and technologies while delivering the iPhone experience at an incredible price,” Apple Chief Executive Tim Cook said during the event. “This is important for our existing users who want a smaller iPhone and a great value.”

Wall Street analysts think the cheaper 5G iPhone will give Apple’s smartphone sales a lift in emerging markets like China and India.

JPMorgan analyst Samik Chatterjee said he expects Apple to sell 30 million units of the third-generation iPhone SE in 2022. He rates Apple stock as overweight, or buy, with a price target of 210.

On the stock market today, Apple stock alternated between modest gains and losses. It ended the regular session down 1.2% to close at 157.44. When the hourlong event began, Apple stock was up 1.6%, near 161.90.

The product launch event, oddly titled “Peek Performance,” was an online presentation. Apple has held only digital presentations since the Covid-19 pandemic officially began in March 2020. Its last in-person product launch event was in September 2019.

Apple Introduces New iPad Air, Mac Studio

The Cupertino, Calif.-based company also showed off a new version of its iPad Air tablet, which starts at $599. The tablet uses Apple’s M1 chip.

Plus, Apple introduced a new high-end desktop computer called the Mac Studio. It starts at $1,999 for a version running the M1 Max chip. A version with Apple’s most-powerful processor, the M1 Ultra, starts at $3,999.

The Mac Studio is packed in small aluminum box that’s 7.7 inches wide and 3.7 inches tall. It can be paired with a new 27-inch, 5K resolution display called the Studio Display. The Studio Display costs $1,599.

In other news, Apple announced a deal with Major League Baseball to offer two games on Friday nights during the regular season on its Apple TV+ service. The weekly doubleheader includes live pregame and postgame shows. The broadcasts will start when regular season begins. However, a dispute between team owners and players has put the 2022 season in doubt.

Apple Stock In Consolidation Pattern

Apple stock has been consolidating for the past nine weeks with a buy point of 183.04, according to IBD MarketSmith charts. It has an IBD Composite Rating of 94 out of 99, according to IBD Stock Checkup.

IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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