On the eve of Apple Inc’s AAPL much-anticipated "Wonderlust" event, Rosenblatt Securities issued a note to investors giving its thoughts and expectations for the event, coupled with reflections on the Chinese government banning its employees from using Apple devices.
Scheduled for Tuesday at 1 p.m. ET, Wonderlust will likely see Apple announce its iPhone 15 lineup, including the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max, among other tech.
The iPhone 15 and its Plus variant are predicted to share features from its predecessors — the iPhone 14 Pro series — notably the A16 Bionic Chip, Dynamic Island technology, and a 48MP camera.
The new devices are expected to support USB-C charging, something that would unify Apple’s charging ecosystem, as well as allow iPhone users to charge their devices with competing, and non-Apple chargers.
Not to be overshadowed, the latest Apple Watches are expected to have a faster processor, marking an upgrade from previous models.
Related: These 5 Big Changes In iPhone 15 Series Will Be The Stand Out Upgrades Over iPhone 14
What do analysts think? Rosenblatt Securities shared its insights on the upcoming event and its implications, particularly concerning Apple's ties with China.
The AAPL Analyst: Barton Crockett reiterated a Neutral rating on the Cupertino, California-based company and did not change his $198 price target.
Crockett said he expects the event will underscore Apple’s strategic tilt towards premiumization, with the iPhone 15 series and an Apple Watch refresh. The company is transitioning towards promoting more premium models to boost its revenue per device.
Coupled with market share gains, the shift could cushion Apple from the broader headwinds rocking the global smartphone industry, according to the analyst.
The analyst noted that even though IDC reported a 7% decline in global smartphone sales for the second quarter of 2023, Apple remains resilient. Rosenblatt projects a potential 7% uptick in iPhone sales during the December quarter, attributing it to a blend of volume and ARPU expansion.
On the geopolitical front, recent reports of China curbing iPhone usage among its government employees are stirring investor anxiety. Rosenblatt said the concerns are not large enough to recalibrate its portfolio, highlighting President Joe Biden's recent deals that suggest a de-escalation around Taiwan.
Given China's pivotal role in Apple's production and the country's contribution to nearly a fifth of its sales, coupled with Apple's employment footprint in the region, Beijing's capacity for a rigid crackdown appears constrained, the analyst said.
AAPL Price action: Shares of Apple were trading 1.2% lower to $177.19 at the time of publication Tuesday, according to data from Benzinga Pro.
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Photo: Apple
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