The main reason why Apple stock is a strong buy until 2022
Apple shares were booming in the second half of 2021, driven by impressive sales and earnings growth. It is also benefiting from the tech titan's foray into emerging technology trends that appear to have boosted investor confidence in its long-term prospects. However, one of the main reasons investors should consider buying Apple stock now is an entry-level iPhone that could hit the market in 2022 and conquer the smartphone market. growth.
Entry-level iPhone 5G could be a big deal
Investment bank J.P. Morgan believes Apple could be working on a 5G version of its entry-level iPhone SE device. Analyst at Samik Chatterjee believes Apple could launch the iPhone SE 5G in early 2022 and give its huge installed user base yet another reason to upgrade. Chatterjee estimates that the new device could help Apple tap into an installed base of 300 million users currently using older iPhones.
However, JPMorgan notes that the biggest prize for Apple's iPhone SE 5G could be the 1.4 billion Android users who own low-end and mid-range smartphones, as the iPhone SE 5G is expected to be there will offer, with an average selling price expected to be between $269 and $399 after factoring in tradeoffs.
By way of comparison, the cheapest 5G iPhone consumers can buy today is the iPhone 12 mini, which sells on Apple's website for a starting price of $599 before the trade-in. A cheaper device could help Apple attract more users. from the Android universe. In fact, the average selling price (ASP) of an Android smartphone is expected to reach $261 by the end of 2021, according to third-party estimates, while Apple's iPhone is said to have an ASP of $950.
Also, according to IDC estimates. The ASP of a 5G smartphone in 2021 is $643. The research firm estimates that the ASP of a 5G smartphone could drop to $416 in 2025, so Apple would make a smart move by launching an affordable 5G device to capture a larger share of the 5G smartphone market.
It won't be surprising to see the idea of a 5G iPhone SE become a reality, as JPMorgan is not the first source to report the possible existence of such a device, noted Apple analyst MingChi Kuo. The iPhone SE 2022 would be its most affordable smartphone.It would make sense for Apple to launch such a device, given that a budget iPhone 5G could also help spread its wings in emerging markets.
Bay Street Capital Holdings is a subsidiary of Maridea Global Capital Management. Maridea refers to Maridea Global Capital Management and all of its subsidiaries and affiliates. Maridea Wealth Management LLC, a subsidiary, is a registered investment advisor and may also conduct business under the names of Huckleberry Capital Management and/or Bay Street Capital Holdings.
Maridea Wealth Management LLC provides investment advisory and related services for clients nationally. Gagni Wealth Management LLC, also a subsidiary, is a registered investment advisor providing investment advisory and related services to clients nationally. Maridea will maintain all applicable registration and licenses as required by the various states in which Maridea conducts business, as applicable. Maridea Wealth Management LLC is an SEC registered investment advisor and Gagni Wealth Management LLC is a Texas state registered investment advisor. For additional information, please click here for our disclosures page.