Apple Aims to Disappoint with New iPhone
Apple (NASDAQ: AAPL) has decided to "upset" the masses by using its new "Lightning" connector on the iPhone 5.
Current chargers, docking stations, and other Apple accessories will be rendered useless as Apple fanatics make the change over to the new iPhone.
Adapters for the new port will cost $30 for the new phone but will not work for older products. Clearly, this is fabulous news for the manufacturers of Apple products and adapters.
Much like owning a franchise of McDonald's (NYSE: MCD), Apple will experience a guaranteed return on its product release as people everywhere will still purchase the latest iPhone rendition. However, it appears that instead of a new "offering," the company has issued a new "mandate."
Analysts across the board have raised price targets on Apple shares following the release as much excitement has surrounded the new design and features of the iPhone 5. Some analysts have even increased shipping forecasts and FBN Securities raised its price target to $1000.
However, most of the "new" features (4G LTE, more voice commands, better camera and larger screen) are features that have been available already from other smart phone makers like Nokia (NYSE: NOK), Samsung, LG, Motorola (NYSE: MSI) and others, and are thus not ground-breaking. To boot, color choices are still black and white (where is the seafoam green or magenta?). Still, consumers will likely line up for the phone regardless, despite how much Apple tests their loyalty.
Shares of Apple traded up 0.73 percent in pre-market trading on Thursday after closing on Wednesday up 1.39 percent following the announcement. The company saw its shares rise and fall as the phone was unveiled, but ultimately closed up. Since consumers believe that new is better, shares will likely continue to rise ahead of the iPhone 5's actual release. Apple could also soon unveil an iPad mini, in an effort to compete in the small tablet market.
Holiday season 2012 may, once again, prove profitable and beneficial to Apple, allowing the company to hold its title of "the most valuable company in the world."
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