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Apple to Introduce Low-Cost Laptop, High Performance Desktop

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Apple (AAPL - Free Report) is reportedly coming up with a new version of its laptop, MacBook Air. The laptop will have “thinner bezels around the screen.” The display will have a higher resolution Retina version and the screen will be around 13 inches.

The current MacBook Air, which is priced at $1,000, has been performing better than its other laptops like MacBook Pro. MacBook Air’s affordable price and user-friendly ports like SD card reader and USB connector are the primary features driving its popularity.

Per Bloomberg, the new range of MacBook Air will be targeted toward consumers looking for lower-priced Apple laptops as well as educational institutions, which buy products in bulk. It is expected to have an October release.

Additionally, per sources, Apple is also looking at upgrading its desktop, Mac mini with higher processing speed and improved storage. With the implementation of the plan, the desktop will get its first update since 2014.

Will Upgrades be Helpful?

Apple, which was once a dominant player in the EdTech industry, lost its share to Alphabet’s (GOOGL - Free Report) lower-priced Chromebook.

Per Future Consulting, Apple had 50% share of the education market in 2012 while Google with its nascent Chromebook had merely 1%. By 2015, the tables had turned with Google holding 50% of market share.

We believe that these new updates will help the company to put up a fight in the EdTech market as the company is targeting educational institutions for the new version of the laptop. Apart from this particular market, the products are also expected to do become popular among other users.

To Conclude

The upgraded versions of the devices are expected to drive demand, resulting in impressive financials for the company, which, in turn, will drive shares. Apple stock has returned 27.3% on a year-to-date basis, outperforming the 26.6% rise of the industry.



Apple is also gaining from robust iPhone sales as well as continued momentum in the Services segment. Higher average selling price (ASP) is driving iPhone revenues. The Services segment has become the new cash cow for Apple and is expected to grow strongly driven by increasing adoption of Apple Music & Apple Pay.

We believe that, going ahead, strong demand for Apple Watch and the company’s foray into AR/VR & AI technologies will aid this Zacks Rank #2 (Buy) stock’s performance.

Key Picks

Some other top-ranked stocks in the technology sector include Amazon (AMZN - Free Report) and 3D Systems Corporation (DDD - Free Report) . While Amazon sports a Zacks Rank #1 (Strong Buy), 3D Systems has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Amazon and 3D Systems is projected to be 26.5% and 27.5%, respectively.

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