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Apple (AAPL) Expands Portfolio With Watch Series 8 Launch

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Apple (AAPL - Free Report) expanded its smartwatch portfolio with the launch of Watch Series 8 and the new Watch SE at Sep 7’s event. The iPhone maker also announced Apple Watch Ultra at the event.

Apple Watch Series 8 features a large, Always-On Retina display and a strong crack-resistant front crystal. The smartwatch promises an 18-hour battery life.

Apple continues to offer health and safety features like the ECG app and fall detection by introducing temperature-sensing capabilities, retrospective ovulation estimates, Crash Detection and international roaming in the new smartwatch.

Apple Watch SE includes Activity tracking, high and low heart rate notifications, Emergency SOS, the new Crash Detection feature and a completely redesigned back case. The Watch SE is available at a more affordable price of $249.

Both Apple Watch Series 8 and Watch SE are powered by watchOS 9, which introduced new and more customizable watch faces like Lunar and Metropolitan, an enhanced Workout app, sleep stages, a first-of-its-kind AFib History feature, and an all-new Medications app.

Apple Inc. Revenue (TTM)

Apple Inc. Revenue (TTM)

Apple Inc. revenue-ttm | Apple Inc. Quote

Both smartwatches will be available beginning Sep 16.

Apple introduced Watch Ultra, which is built for endurance, exploration and adventure, featuring a 49 mm titanium case and flat sapphire front crystal that offers the biggest and brightest Apple Watch display yet.

Apple Watch Ultra offers up to 36 hours of battery life during normal use. The smartwatch also features a new low-power setting that can extend the battery life to reach up to 60 hours.

Apple Watch Ultra also offers a Wayfinder watch face that is designed specifically for the larger Apple Watch Ultra display and includes a compass built into the dial, with space for up to eight complications. Apple Watch Ultra also offers three new bands, Trail Loop, Alpine Loop, and Ocean Band.

Apple Watch Ultra will be available beginning Sep 23.

Apple’s New Watches to Boost Smartwatch Dominance

Apple dominates the wearable market, which includes smartwatches. Per Markets & Markets, the wearables market is expected to witness a CAGR of 18% between 2021 and 2026 to reach roughly $265.4 billion by 2026.

Apple’s launch of the new smartwatches is expected to boost its dominance in this space. In fiscal third-quarter 2022, Apple Watch’s adoption rate continued to grow rapidly. More than two-thirds of the customers who purchased the Apple Watch during the reported quarter were first-time customers.

Per Counterpoint research data, Apple had 29% market share in second-quarter 2022 ending June. The global smartwatch market’s shipments grew 13% year over year in the second quarter despite macro uncertainties including higher inflation and geopolitical conflicts.

Zacks Rank & Stocks to Consider

Apple currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer & Technology sector are Absolute Software (ABST - Free Report) , Paylocity (PCTY - Free Report) and Synchronoss (SNCR - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Absolute shares have gained 14.9% in the year-to-date period. The Zacks Consensus Estimate for ABST’s fiscal 2023 earnings has moved 487.5% higher over the past 30 days to 47 cents per share.

Paylocity shares have gained 4.4% in the year-to-date period. The Zacks Consensus Estimate for PCTY’s fiscal 2023 earnings has been steady over the past 30 days at $3.58 per share.

Synchronoss shares have lost 39.3% in the year-to-date period. The consensus mark for SNCR’s 2022 earnings has moved 220% higher to 16 cents per share over the past 30 days.

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