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Munster On Apple's March Event: New Watch, iPad Air 3 Makes Sense, 4" iPhone Less So

Munster On Apple's March Event: New Watch, iPad Air 3 Makes Sense, 4" iPhone Less So
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  • 9to5Mac published an article stating Apple Inc. (NASDAQ: AAPL) will hold an event in March, where it will announce a new Apple Watch, an iPad Air 3 and a 4" iPhone (5SE).
  • In a report issued Tuesday, Piper Jaffray's Gene Munster shared his view on the issue.

The timing for Apple to present a new Watch and iPad Air 3 "make sense given their product lifecycle (1 year and 1.5 years since last update)." However, the firm's analysts still think that the timing for the 4" iPhone makes less sense.

Related Link: A First Glimpse Into Apple's March 15 Event

"Our logic for the smaller phone timing is that if Apple were to launch the smaller phone in the spring, it would be quickly outdated when the redesigned iPhone 7 comes out in six months (September)," Munster and his team said. In addition, presenting a 4" iPhone in the spring event could take attention away from other products.

The firm reiterated an Overweight rating and $172 price target on shares of Apple.

A Look Into The New Products

For the March product launches, analysts at Piper Jaffray envision the following features:

  • Apple Watch: Anticipate more of an "S" version with a design that's quite similar to the current one. However, they foresee “upgraded components including processor battery, new band styles.” They also noted that the new device is unlikely to feature a wireless radio, which would allow it to work as a standalone product, decoupled from the iPhone or other devices.
  • iPad Air 3: Expect a redesigned body, Force Touch, a better camera and ameliorated components. They also think that the new iPad Air will offer users the possibility of using a smart keyboard, like the iPad Pro does.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for AAPL

Jun 2018ArgusMaintainsBuyBuy
May 2018Maxim GroupDowngradesBuyHold
May 2018Morgan StanleyMaintainsOverweightOverweight

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