New Product Launches Signal Apple (AAPL) is Navigating Supply Chain Disruptions Better Than Other Companies Says Analyst

October 19, 2021 6:34 AM EDT
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Apple (NASDAQ: AAPL) yesterday unveiled new MacBook Pros, AirPods and new processors.

A new MacBook Pro 14-inch starts at $1,999 while the 16-inch model at $2,499. Both are equipped with Apple’s new M1 Pro and M1 Max chips, which are reportedly faster than those produced by Intel (NASDAQ: INTC).

New AirPods the company presented have a lot more features that were previously reserved for the more expensive Pro model. AirPods start at $179.

Citi analyst Jim Suva believes that yesterday’s events show that Apple is “significantly better at navigating these disruptions than other, small product OEMs,” despite supply chain issues that continue to impact the entire industry.

BofA analyst Wamsi Moha reiterated a Neutral rating on risk/reward balance. On new MacBook Pros, the analyst said:

“While the specs for the Macs are genuinely impressive, the starting price point of the MacBook Pros with these new M1 chips ($1,999 for M1 Pro, $2,899 for M1 Max) will likely have them sought after by high-end audiophiles, game developers/gamers, and developers,” Moha said in a client note.

Needham’s Laura Martin has focused on the marketing expertise that makes the Cupertino-based company unique-position.

“One of the reasons that AAPL's margins are so high (our view) is that it benefits from enormous free publicity, which cuts its required marketing costs. There is no other consumer product we know of that could command enormous audiences for 2 hours of product demos in a single month. These events create awareness for minimal costs. AAPL's strong consumer brand and rabid fandom make this possible, thereby lowering its marketing expenses required to introduce new products (our view),” Martin wrote in a client note.

Shares of Apple closed at $146.55 yesterday.



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