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New products could boost Apple’s growth

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On March 8, Apple held its first new product announcement event of the year. Usually, this type of event held by one of the largest companies in the world generates a lot of expectations from both the public and investors. 

At the event, a wide variety of products were announced. Apple showcased its new Studio Display, a 27-inch screen with 5k definition and integrated camera and speakers. It can be used to connect MacBooks Pro. Hand in hand with it, they introduced a new computer without a display. It is similar to a box and contains USB-C ports and an SD card slot on the front. This computer uses the high-performance M1 Ultra processor, which the company claims is more powerful than its current M1 chips, being 80% faster than the high-end Mac Pro.

Also announced was the new iPad Air with M1 processor and optional 5G support, a new iPhone SE model, successor to the one released in 2020, which at first glance looks like a phone from previous Apple versions, but inside it has all the features of a state-of-the-art phone, and the Apple TV+ agreement to broadcast MLB (Major League Baseball) games.

The general public did not end up as satisfied with the announcements made by Apple, maybe because they were expecting something more innovative. For this reason, investors were not surprised either, so the company’s shares finished the day down 1.2%.

However, not everything is negative for Apple. While it is true that its new products did not cause the worldwide furor and impact that they have had on other occasions, chances are they may generate very high sales figures. This new technology could further boost the multi-billion dollar company’s growth.

The new iPhone SE will go on sale on March 18 for a price of $429 and is perhaps one of the best value-for-money offerings on the market. With the A15 Bionic chip, SE users will get top-tier performance for a relatively low price. Similarly, Apple is strengthening its streaming platform to gain new subscribers. The inclusion of MLB and fresh and varied content in series and movies will surely pay off. It is very likely that thanks to these changes, Apple will gain more customers due to the seriousness with which they are working in each market sector.

How do these new products affect the stock price? Despite its initial downfall, buying some AAPL shares seems to be a wise investment as of now. TipRanks’ analysts have given the stock a Strong Buy rating. On the other hand, according to Wall Street, Apple’s average price target is $193.32, which implies an increase of 22.6%.

Additionally, during CNBC’s “Fast Money Halftime Report”, Hightower Advisors’ Stephanie Link explained that investing in Apple could be a great defensive play due to its strong cash position. She expects the company to buy back 2 – 3% of its shares over the next three years.

With this in mind… Do you think Apple’s stock will be on the rise for 2022? Would you consider investing in this company?

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