Apple May Add Higher Capacity Batteries in 2019 iPhones
Per a CNBC article, which quoted analyst Ming-Chi Kuo’s report, Apple AAPL is likely to introduce batteries with higher capacity and same physical size in the 2019 iPhone models.
Kuo, which expects Apple to release 5.8-inch, 6.1-inch and 6.5-inch iPhone models may have battery capacities of 20%-25%, 0%-5% and 10%-15%, respectively, higher than last year’s models. Additionally, the batteries are likely to support two-way wireless charging, a feature recently released by rivals Samsung SSNLF and Huawei.
The two-way charging feature allows users to charge their wireless-charging devices like Apple Watch and AirPods by just placing the devices on the back of their iPhone. Kuo believes that the feature will “create a better integrated user experience of the iPhone and AirPods.”
The feature may also appease customers who might be disappointed with Apple’s recent decision to cancel its wireless charging mat, AirPower, which was capable of charging an iPhone, Apple Watch and AirPod at a time
Apple Inc. Revenue (TTM)
Apple Inc. Revenue (TTM) | Apple Inc. Quote
Can New Batteries Boost iPhone Sales?
Apple may see an uptick in iPhone sales due to improved battery capacity after experiencing weak demand in China and lower-than-anticipated iPhone sales in first-quarter fiscal 2019.
Additionally, increase in Chinese manufacturing activity in the month of March due to increased domestic demand may drive iPhone sales. China is an important market for Apple, given the growing number of middle-class customers. Notably, in first-quarter fiscal 2019, Greater China accounted for 15.6% of total sales.
Moreover, the growing popularity of iPhone among Android users may help Apple boost its global smartphone market share. Notably, iPhone XR attracted more Android users than prior models in the United States, per CNBC.
Lower Prices May Increase Market Share in Price Sensitive Economies
Apple recently lowered the price (roughly 6% on average) of many of its products, including iPhones, iPads, Macs, and AirPods, on its online store in China. The price cuts can be attributed to the recent reduction of a value-added tax in China from 16% to 13%.
Earlier, official Chinese third-party Apple sellers such as Alibaba’s BABA Tmall and JD.com JD lowered prices for Apple devices.
Moreover, Apple's move to initiate production of its high-end iPhones in India by partnering with Foxconn may further reduce iPhone prices in 2019 local users. Notably, premium pricing has been blamed for Apple’s declining market share in countries like China and India.
Therefore, the abovementioned initiatives may help the Zacks Rank #3 (Hold) stock to grow its smartphone user base in the top two growing economies in 2019.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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