Apple Product Upgrade Cycle Set to Begin, Gene Munster Says
In a recent interview, Gene Munster, co-founder and managing partner of Deepwater Asset Management, shared his optimism about Apple’s upcoming product upgrades. Munster believes that Apple is set to introduce transformative features that will require users to upgrade their hardware to access them. He predicts that approximately 85% of Apple hardware will need upgrading to experience these new features.
Exciting Changes on the Horizon for Apple Products
Munster highlights key points about Apple’s upcoming product upgrades that are likely to entice users to make the switch:
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Transformative Features: Apple is introducing groundbreaking features that will revolutionize the way users interact with their devices.
- New Apple Features: Users are expected to get access to features that have never been available to Apple users before.
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Hardware Upgrades: To access these new features, users will need to upgrade their hardware.
- Necessary Hardware Upgrades: Approximately 85% of existing Apple hardware will require upgrading to enable the new features.
- Consumer Demand: Munster anticipates that consumers will be eager to upgrade their devices to access the exciting new features.
- Anticipated Consumer Response: Munster believes that consumers will find the new features irresistible and will want to upgrade their devices.
Anticipated Impact on Analysts and Earnings
Munster also discusses how Apple’s product upgrades will impact analysts and earnings projections:
- Analyst Reactions: Munster predicts that analysts will need to revise their projections in response to Apple’s upcoming product launches.
- Timing of Analyst Revisions: Changes to analysts’ projections are expected to occur in phases over the coming months.
- Initial Revisions: Approximately 20% of analysts are expected to update their projections in the next 1 to 3 years.
- Subsequent Revisions: Another 30% of analysts are likely to adjust their projections after the release of new iPhones in September.
- Final Revisions: The remaining 50% of analysts may update their projections by the end of 2024 or early 2025.
- Earnings Forecast: Munster expects positive earnings revisions for Apple over the next 6 to 9 months.
- Projected Growth: Apple’s growth is forecasted to increase from 2% in 2024 to around 10% in 2025 and possibly 12% in the following year.
Exciting Times Ahead for Apple Users
Munster predicts that Apple’s upcoming product upgrades will create a significant demand for device upgrades among consumers. He envisions a shift in the way users engage with their devices, offering enhanced value and functionality. Munster encourages investors to consider owning Apple stocks ahead of positive earnings revisions, highlighting the projected growth in the coming years.
Hot Take: A New Era for Apple Products
As Apple prepares to unveil its latest product upgrades, users can expect to experience a wave of exciting new features that will revolutionize their interactions with their devices. With an emphasis on transformative technology and enhanced user experiences, Apple is poised to drive a significant demand for hardware upgrades among consumers. As positive earnings revisions loom on the horizon, investors may find it beneficial to consider the potential growth opportunities presented by Apple’s upcoming product launches.
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