Key Factors For Investors To Watch As Apple Unveils iPhone X

by Trefis Team
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Apple (NASDAQ:AAPL) is expected to launch its much awaited 10th anniversary iPhone (likely called iPhone X) along with upgraded versions of the iPhone 7 on Tuesday. The event will be very closely watched by investors, given that the iPhone accounts for about two-thirds of Apple’s revenues and also because this will mark Apple’s first full redesign of the iconic device in about three years.

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Investors will be closely watching the launch date of the new flagship device. Apple typically begins selling new iPhones on the second Friday following their unveiling, implying that the new phone could hit stores from Friday, September 22. Investors will also be watching the number of markets in which the device will be initially available, in order to gauge the extent of Apple’s supply. This will be a key factor to watch, as the availability of the flagship device is reportedly constrained amid a shortage of OLED displays and some early manufacturing issues. If Apple decides to limit the number of initial launch markets, it could point to some production issues. For perspective, Apple offered the iPhone 7 in a total of 29 markets at launch, and the iPhone 6s in 12 markets. The device’s launch in China – which is one of Apple’s largest markets outside the U.S. – will also be another factor that investors will be tracking closely.

Investors will also be closely looking at pricing for the new device to gauge the margins that Apple can garner. There’s speculation that the 10th-anniversary device could have a starting price of about $1000, about 50% higher than the entry level iPhone 7. As the iPhone already costs significantly more than comparable Android handsets, investors will be looking at whether the new features will be attractive enough to justify the lofty price tag.  Investors will also be looking at the various storage tiers that Apple offers with the device. If Apple goes by the storage mix of its new iPad Pro models, the base model could sport 64 GB of memory, with the 256 GB and 512 GB variants priced at $100 increments. If this is the case, there’s a possibility that higher-tier models could actually have lower margins than before, given the rising NAND prices.

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