-7.9 C
Wednesday, February 8, 2023

Why the iPhone 12 Mini Could Be a Big Deal for Apple Stock

Must read

By best estimates, we’re less than a month away from the launch date of the Apple (NASDAQ:AAPL) iPhone 12 — an event that will have a huge impact on AAPL stock.

White Apple (AAPL) logo on glass with people in background

Source: ZorroGabriel / Shutterstock.com

I recently shared with my readers why I think your best play for Apple may be after the iPhone reveal. Remember, historically, Apple drops in stock price after an iPhone event, but then investors see the stock gain ground in subsequent months.

Now, as information begins leaking out from Apple’s expected iPhone reveal, one can begin to see more clearly how a combination of new 5G technology and what’s expected to be a reduced price point can trigger a wave of iPhone sales in the fourth quarter and into 2021.

If and when that happens, investors should see that tried-and-true pattern for AAPL stock come true once again.

The Rumored ‘Mini’

The latest word around Apple’s iPhone 12 release centers around the concept of an iPhone “mini” device — a 5.4-inch iPhone that is expected to be priced at $649. If true, that would be $50 less the lowest price of the iPhone 11 released last year.

Meanwhile, the standard iPhone 12 is expected to have a 6.1-inch screen and be priced at $749. The iPhone 12 Pro and iPhone Pro Max models are expected to have a price point of $999 and $1,099.

Now this is key: All four models are expected to have 5G technology. That is some of the most important and exciting technology for smartphones in years.

I’m convinced that people who have been putting off a smartphone upgrade will be looking very closely at the iPhone 12 when it comes out because they’ll want to get their hands on 5G. And with the state of the economy thanks to the novel coronavirus pandemic, household budgets may be stretched tighter than usual these days. A lower-priced option could be a big winner.

Apple is always able to tap into its loyal customer base to snag the high-end spender who is willing to pay $1,000 for the biggest and best iPhone.

Now, with the iPhone Mini option, Apple will also be able to capture buyers who may not want to spend as much on a new phone but still want the 5G technology.

Why 5G Is a Big Deal

Actually, 5G is more than just a big deal. It has the potential to change how we use the internet.

In fact, I’ve been talking about why 5G is a big deal for months now. That’s how excited I am about the technology, and about the potential it brings investors.

Here’s the upshot: 5G will allow users to have cable modem speeds on any device. It is 100 times faster than 4G, so your iPhone 12 will be operating in real time. No lag.

If you’re watching sports, you’ll be able to see it in real time, as if you were on the field. That’s going to be huge not only for fans but for the sports betting industry, including fantasy leagues and online wagering apps.

On a more mundane level, 5G technology will allow your doctor to see you in a virtual check-up. That’s become the norm for some medical providers during the coronavirus pandemic as patients didn’t want to leave the relative security of their homes.

Now, imagine using 5G technology and a virtual reality headset to have a physical therapy appointment from the comfort and security of your home. That’s about to become a reality.

And remember — applications that want to use 5G technology will all be available in the Apple App Store. That’s another huge source of revenue for AAPL stock.

The Bottom Line for AAPL Stock

Even after a September stumble, Apple’s stock is up more than 50% on a year-to-date basis. The third quarter saw it post blowout numbers, including an 11% year-over-year increase in revenue that reached $59.7 billion.

While the release of the iPhone 12 is being delayed for a few weeks because of coronavirus disruptions to the production schedule, I’m still expecting the launch to be a long-term catalyst for AAPL stock into 2021.

Apple stock has an “A” rating in my Portfolio Grader and carries a strong buy recommendation right now.

On the date of publication, Louis Navellier did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

On the date of publication. the InvestorPlace Research Staff member primarily responsible for this article held a long position in AAPL.

Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.

Latest article