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Apple Expected to Deliver on iPhone 13

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As the year moves toward the fall and winter seasons, retail companies will typically release new products to capture holiday shoppers. Apple Inc. (AAPL) holds an annual event around September for showcasing new products and upgrades, and this year is expected to launch the new iPhone 13. While the global chip shortage has held back supply chains for smartphone producers, confidence is brewing in Apple’s ability to deliver. (See Apple stock charts on TipRanks)  

Spelling out his Bullish thesis on the development is Daniel Ives of Wedbush, who expects about a 10% increase in iPhones produced year-over-year. Ives asserted his confidence in the timing of the highly anticipated launch, which he expects to be around the third week of September.  

Ives reiterated a Buy rating on the stock and declared a price target of $185. This target represents a possible 12-month upside of 19.90% from current levels.  

The five-star analyst is encouraged by possible iPhone improvements, such as a vastly expanded storage capacity or a built-in Lidar scanner. However, his confidence in Apple and this particular product launch center around the integration of 5G broadband into its capabilities. In fact, he stated that his “favorite large cap tech name to play the 5G transformational cycle is Apple.” This is due to the firm’s strong hardware and services segments.  

Furthermore, Ives foresees a large base of consumers ready to take the leap to a new iPhone. He wrote that about one-quarter of iPhone users have not upgraded in at least three and half years, creating a “massive pent up demand.”  

As far as antitrust concerns go, Ives mentioned that Apple has maintained a position away from the other large names in tech currently dealing with regulators.  

Additionally, lawsuits brought by developers against Apple for its App store policies have mostly resulted in settlements, which Ives sees a net positive. The analyst noted that CEO Tim Cook has shown leadership in settling these suits and that there is in fact change which must be made regarding App store policies. Lastly, it appears investors have not been rattled by the litigation.  

On TipRanks, AAPL has an analyst rating consensus of Strong Buy, based on 18 Buy and 6 Hold ratings. The average Apple price target is $165.48, reflecting a potential 12-month upside of 7.25%. AAPL closed trading Friday at a price of $154.30 per share.  

Disclosure: At the time of publication, Brock Ladenheim did not have a position in any of the securities mentioned in this article

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance. 

The post Apple Expected to Deliver on iPhone 13 appeared first on TipRanks Financial Blog.

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