Analyst Note| Abhinav Davuluri, CFA |
On Sept. 14, Apple held its annual product showcase, where the firm announced the launch of a new iPhone, iPad, and Apple Watch. Similar to last year, Apple launched four new iPhone models: the iPhone 13 ($799), iPhone 13 mini ($699), iPhone 13 Pro ($999), and iPhone 13 Pro Max ($1,099), with pricing consistent with equivalent models from the prior year. Beyond the typical chip, battery, and camera enhancements, we equate many of the updates to those of past iPhone “S” models that were more incremental in nature. While 5G penetration remains in the early innings, we think Apple’s fiscal 2022 iPhone growth is likely to be more muted than the growth implied by the current stock price. We are maintaining our $124 fair value estimate for narrow-moat Apple.