In 2018, Apple stock will climb toward $200 – and the company's market cap to $1 trillion – thanks in part to the new iPhone X that was announced yesterday (Tuesday).
The annual September event is the key to Apple Inc.'s (Nasdaq: AAPL) success for the next year. The new products it introduces are sold not just in the upcoming holiday quarter, but through the next 12 months.
New iPhone models in particular are critical – the product accounts for about two-thirds of Apple's revenue.
Here's a brief look at what Apple unveiled today…
Meet the Products That Will Drive Apple Stock Toward $200
Apple introduced new models of three of its products: the Apple Watch, Apple TV, and of course, the iPhone.
- Apple Watch: The thing to know about the Series 3 Apple Watch is that it no longer needs to be tethered to an iPhone to access wireless data. It has its own cellular chip now. Apple claims its new Watch is also an impressive 70% faster and has "all-day battery life." These new features could jump-start sales of a product that has had adequate sales to date but hasn't really taken off.
- Apple TV: Apple's set-top box will now support 4K resolution, which is four times as sharp as HD. It's also getting a processing chip that's twice as fast as well a fourfold boost to its graphics performance. That makes Apple TV a much better gaming device, a wrinkle added last year that hasn't gotten the adoption Apple would like. Apple also beefed up its content offerings, which now include live sports.
- iPhone 8: The iPhone 8 models (a 4.7-inch and a 5.5-inch) feel more like interim upgrades (as were the iPhone 6s models), but the improvements are welcome. The iPhone 8 gets faster innards and better cameras, as you'd expect. The improved hardware enables more robust augmented reality features, particularly for gaming (think Pokemon Go).The marquee feature this time around is wireless charging. Instead of plugging the device in, users can just sit the iPhone atop a charging pad. Best of all, it's compatible with the Qi wireless charging standard, which many companies already have adopted.
The biggest appeal to the average smartphone buyer is the default memory, now at 64 GB rather than 32 GB. That means twice as much room for photos and videos.
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- iPhone X: One of the most-rumored Apple products in Apple history also made its debut. It includes all the iPhone 8 improvements, but has a screen that takes up the entire front of the phone. At 5.8 inches, it's slightly bigger than the iPhone 8 Plus.The physical home button is gone, with the unlocking feature now the realm of "Face ID," a sophisticated facial recognition technology. Apple says it can't be fooled by photos or masks.
But what will get most of the attention is the $999 price tag – by far the steepest starting price ever for an iPhone. The long-suspected price has caused much consternation among analysts, who fear that even Apple fans will balk.
Those fears are mostly unfounded. The iPhone X – along with its iPhone 8 brethren – will push sales to new records. That will drive up earnings and keep the AAPL stock price moving higher.
Here's why the new iPhones will make Apple a $1 trillion company…
Why the New iPhones Will Break Records
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.