Finally, it looks like Apple (Nasdaq: AAPL) is set to show off its next-generation iPhones in a virtual event next week.
On Tuesday Apple said it would stream the event from its headquarters in Cupertino, California on Oct. 13. While the announcement does not specifically say it will be a product unveil of its 5G iPhones, the event title “Hi, Speed” suggests that will be the case.
Normally, Apple announces its new iPhones in September. But with the implications of Covid-19, the tech giant warned in the summer this year’s new iPhones would likely be delayed by a few weeks.
Meanwhile, the company held an event in September that introduced a new set of Apple Watches and iPads. Historically, Apple's stock does not rise imediately after these product launch events, which is a bit counterintuitive. Instead, the stock typically goes up before the event and then dips once the event is over. Then, within 30 to 60 days or so the stock starts to take off again. But will 2020 be different?
Apple Goes After China
On launch day, Apple will look to enter the 5G race, which China has dominated; it will look to help the U.S. narrow the gap.
Smartphone research firm Canalys has projected Greater China to reach 172 million 5G smartphone shipments by the end of the year. That would give Greater China 62% of the market share. The next behind China comes the North American market, which is forecasted to reach 15% of market share by the end of 2020.
Chinese smartphone giants including Huawei Technologies and Xiaomi (HKEX: 01810) along with the country’s growing brands such as OnePlus and Realme, accounted for 79% of the 5G smartphone worldwide shipments in July, according to Counterpoint Research.
Apple may have other announcements to make during its virtual event –but all eyes will be on its new iPhones. According to various media reports, Apple’s new lineup is expected to feature four new iPhone 12 models. That includes one 5.4-inch iPhone, two 6.1-inch iPhones, and one 6.7-inch iPhone.
Last year’s iPhone 11 was the second-best-selling smartphone around the world.
Intraday, the stock in Apple was trading 1% higher from Tuesday’s close at $114.66 per share.