When FAANG stocks rallied post-election, Apple (NASDAQ:AAPL) rose by 9%. Yet the long-term growth catalyst is still dependent on iPhone sales. A simplified subscription that bundles the offering will drive sign-ups and profit margins but smartphone sales matter more.
iPhone is in a good position to grow iPhone sales in the quarter and 2021. iPhone 12s could cost up to $1,959 (in US dollars). Still, a mobile plan with one of the major telecoms will lower the cost of ownership, as will a monthly payment option.
iPhone 12 Mini
Apple’s Mini is likely the biggest driver for unit sales in the quarters ahead. The device is 11% thinner, 15% smaller, and 16% lighter. Tiny is back again and the edge-to-edge screen could deter consumers from buying the latest Samsung Android device.
Apple hindered MagSafe charging rates with the Mini. This should not deter consumers from picking this device over the other iPhone 12 models, assuming that they charge the device overnight. Furthermore, the lack of earphones and an AC plug is not likely a deterrent for sales.
Unfortunately, Apple does not give consumers the option of getting those accessories for free if they need it.
Apple stock is a long-term hold.
