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Apple's (AAPL) Recent Upgrades to Attract New Customers

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Apple’s (AAPL - Free Report) recent upgrades across its various platforms are expected to attract more customers to its various products and services, thus driving the company’s revenues.

The company is anticipated to bring even more upgrades as Apple recently announced that it will be hosting its Worldwide Developers Conference (WWDC) in an online format from Jun 6 through Jun 10.

During the WWDC, Apple exhibits the company’s latest innovations in iOS, iPadOS, macOS, watchOS, and tvOS. As the company recently released the first beta version of iOS 15.5, it can be expected that it will be the final update before the release of the iOS 16 at WWDC in June.

The new iOS 15.5 beta 1 is available to developers via an over-the-air update in the settings app. After the feature-packed release of iOS 15.4 that supported face ID while wearing a mask, new emojis, universal control support on iPad and Mac and much more, it is anticipated that iOS 16 will include even more features to beat the competition in a very volatile economic situation.

Apple Inc. Price and Consensus

Investors are wary as a higher interest rate environment is expected to continue in 2022 due to the ongoing Russia-Ukraine war. It has resulted in higher commodity prices, which may curtail U.S. GDP growth in first-quarter 2022. It is worth mentioning that the U.S. inflation rate is currently at a 40-year high.

This economic turmoil has impacted the demand for Apple products. The ongoing conflict has aggravated the year-long chip shortage, affecting various industries ranging from PCs to smartphones.

Amid all this, Apple has halted its production in Russia, where it had a 16% market share last year. Consequently, Apple is lowering its production plans for iPhone SEs by 20%, which is about 2 million to 3 million units, per Nikkei Asia.

iPhone 13 production is anticipated to be reduced by a couple of millions. AirPods production is being reduced by 10 million units.

As such, the company stocks have fallen 33.9% in the year-to-date period compared with the Zacks Computer-Mini Computers industry and the Zacks Computer and Technology sector’s decline of 32.4% and 14.9%, respectively.

The company’s robust business model to provide updated software with new features across all of its offerings and the services business is becoming the key differentiator for the company’s profitability. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Apple Upgrades: The Key to Beat Rising Competition

Apple is expected to update the iOS and watchOS with new health tracking features after the company expanded its Fitness + program by introducing a postpartum fitness program to the service.

Apple Watch’s new upgrade in the Fitness + program will help the company fend off competition from the likes of Garmin (GRMN - Free Report) .

Garmin has been able to benefit from the growing fitness business amid the pandemic with its different smartwatches to suit diverse needs like outdoor hikers, swimmers and other health enthusiasts.

Per 9to5Mac, although Apple is far from announcing any update for its mixed reality headset, the beta version of iOS 16 codenamed Sydney is expected to be filled with updates for the headset and its probable interaction with the iPhone.

This indicates that the mixed reality headset is expected to be launched during the lifecycle of iOS 16, thus intensifying competition with Microsoft (MSFT - Free Report) and Meta Platforms in the augmented reality space.

Microsoft’s HoloLens 2, which is a mixed-reality device, has gained enterprise adoption and captured customers’ attention by developing the next generation of computing by combining mixed reality and Dynamics 365.

However, Apple’s key competitor in the augmented reality space is Meta Platforms’ Ray-Ban Stories smart glasses, developed in collaboration with EssilorLuxottica, as it indicates the company’s keen interest in building a completely virtual world.


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