Apple iPad Price Increase Shows Confidence, Services Bundle A 'Smart Strategic Move,' Analysts Say

AAPL) unveiled new products and services at an event Tuesday, which analysts dubbed as key to the company’s financials going forward.

latest product line spanning Apple Watch, iPad Air, and the services bundle will be “key ingredients” in the Cupertino-based company’s success in the coming financial year and beyond.” data-reactid=”21″>New Product Line Key For FY21 Earnings: Wedbush said the latest product line spanning Apple Watch, iPad Air, and the services bundle will be “key ingredients” in the Cupertino-based company’s success in the coming financial year and beyond.

Ives estimates that 10% of the iPhone customers already have an Apple Watch and Cupertino could penetrate the customers on the current upgrade trajectory over the next three years.

The analyst called the new services bundle a “smart strategic move” which comes at the “right time” and will help the Tim Cook-led company to further monetize its golden installed base with an upside potential to expand the core services segment by an incremental 5-7% annually.

“We estimate that the overall iPad lineup accounts for 11% of total revenue, with the iPad Air accounting for about 4%,” Munster wrote. 

Munster estimates the services bundle will increase Cupertino’s revenue per subscriber by 25%-50% contingent on the plan. The current revenue hovers around $500 million. 

PTON), as per Munster. Peloton has a 1.07 million-strong subscriber base.

Apple’s next-generation iPhone 12 is likely to be available in four models and the “supercycle” is likely to begin in early October, according to Ives. The analyst terms the next release as a “once in a decade” iPhone cycle.

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