Apple Inc.’s latest iPhones won Wall Street over by dint of lower prices and a major design overhaul, fueling expectations of a new cycle of sales growth for the world’s largest corporation.
At a virtual event on Tuesday, the company showed off the iPhone 12 in black, red, blue, green and white with a 6.1-inch screen, part of the biggest re-design of Apple’s signature device in three years. It starts at $799 but a smaller version, the iPhone 12 mini, costs $699.
Analysts praised a pricing strategy that may entice users with older, smaller iPhones to upgrade. They were also bullish on Apple’s ability to take on rivals like Huawei Technologies Co. in China, the world’s largest smartphone arena, where 5G networks are considerably more built-out than in Europe and the U.S.
“The pricing dynamics are the killer app for the phone launch,” Harsh Kumar of Piper Sandler & Co. wrote in a research note. “Pricing was lower than our expectation, which is important in the current global pandemic.” Cheaper devices may help increase Apple’s installed base of devices, driving further growth of more profitable services, he added.
There’s also an iPhone 12 Pro, starting at $999, and an iPhone 12 Pro Max that costs at least $1,099, both with stainless steel edges. The Max has a 6.7-inch (17 cm) screen, Apple’s largest ever, while the regular Pro has a 6.1-inch display. They come in blue, gold, graphite or silver.