An Apple store in Berkeley, Calif.
shares could really use a lift right now, which puts increasing pressure on the pending launch of the iPhone 15, which is expected to arrive sometime in September. That could be a tall order, given what is expected to be a more incremental than revolutionary set of upgrades. Apple (ticker: AAPL) has slipped more than 12% since the stock’s record close at $196.19 on July 31, due to a combination of a softening stock market and a June-quarter earnings report that met with a tepid response from investors. Sales fell 1% in the period, pressured by disappointing iPhone sales. Apple said it expects similar sales performance in the September quarter, with improvement in iPhone and Services offset by significant year-over-year declines in Macs and iPads.
In a research note Friday, Evercore ISI analyst Amit Daryanani walked through what to expect from iPhone 15, which he thinks could arrive as soon as Sept. 12, although the company hasn’t announced any product launch events just yet. Here’s what he’s looking for this time:
For the base models—iPhone 15 and 15 Plus—Daryanani expects the “notch” at the top of older models will be replaced with the “Dynamic Island” feature that launched on Pro models in iPhone 14. That’s a small pill-shaped area at the top of the screen that includes the front-facing camera and other sensors and can provide notifications and alerts.
The base models will likely get an upgrade to the A16 chipset.
For Pro models, the bezel will shrink by about 30%, he says, thanks to a new manufacturing technology called LIPO (low-injection pressure overmolding). The material used for the phones’ edges will be switched to titanium from stainless steel. The edges are supposed to be smoother.
He also thinks cameras in Pro models will get a major upgrade.
Pro models likely get an upgrade to the new A17 chipset, which is supposed to be faster and likely provides improved battery life.
The new phones are expected to include USB-C connectors, replacing the current proprietary Lightning connectors. Given that USB-C is a standard for many other consumer devices, the company is likely to sell fewer charging cables. Charging speeds should improve as a result.
Daryanani thinks prices for Pro models will bump up from iPhone 14 levels.
The analyst thinks the updates will drive iPhone customers to refresh devices and push more buyers to higher-priced models. Daryanani maintains his Outperform rating and $210 target price on Apple shares. Apple shares were down 0.3%, at $173.49, in recent trading. The
was down 0.2%. Write to Eric J. Savitz at [email protected]