Apple (NASDAQ:AAPL) will give investors a better indication of iPhone 11 sales when it reports results on Jan. 28. And even though strong holiday sales will help justify the stock’s solid rally in the last year, the company still needs a budget iPhone.
Apple benefits its ecosystem if it has more users. An inexpensive iPhone SE or iPhone 8 refresh will slow the migration of iOS users to Android.
Those who switched simply do not have the $1,500 to pay for the privilege of using iOS. So, Apple should launch a capable and well-balanced iPhone at the mid-range price to keep those users.
Investors should not doubt the continued strength in-app, music, and support fees Apple users are willing to pay. Plus, a budget and mid-range iPhone will drive sales of Apple Bluetooth earphones and Apple Watch. iPhone users will sign up for Apple TV Plus. The company needs a growing audience so that it may use the monthly revenue to pay off the content spend.
On Jan. 17, Apple signed a multi-year deal to bring Julia Louis-Dreyfus on the Apple streaming platform. This may attract the female demographic. So, as Comcast (NASDAQ:CMCSA) launches its Peacock streaming service, targeting 30 million domestic accounts and a break-even by 2024, Apple needs to compete effectively.
Takeaway
Expect Apple to launch a mid-range iPhone 8 refresh. This will help lift Y device unit sales Y/Y in 2020.
Tech Insider
