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Apple (AAPL) Launching iPhone Model to Drive Top Line in 2020

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Apple (AAPL - Free Report) is reportedly planning to ship a high-end new iPhone model in 2020, per a Credit Suisse presentation, cited by LetsGoDigital.

Apple's suppliers are reportedly finalizing the development of a full-screen display for this year’s high-end iPhone model, finally going notch-less. Further, the iPhone will have Touch ID embedded in the display, completely ditching Face ID.

Moreover, the new iPhone is expected to offer 5G support. Notably, the company acquired Intel’s (INTC - Free Report) smartphone modem business for $1 billion in July, 2019. Apple has also settled its dispute with Qualcomm (QCOM - Free Report) , which further supports the theory of a 5G iPhone in 2020.

Apple Inc. Price and Consensus

Apple Inc. Price and Consensus

Apple Inc. price-consensus-chart | Apple Inc. Quote

New Phone to Boost the Top Line

The launch of iPhone is expected to aid Apple’s top-line growth in fiscal 2020.

Notably, iPhone revenues accounted for 52.1% of total revenues in fourth-quarter fiscal 2019. Despite iPhone sales declining 9.2% from the year-ago quarter to $33.36 billion, customer response was good for iPhone 11, 11 Pro and 11 Pro Max, which were launched in the latter part of the quarter.

The decision to go notch-less is also expected to drive sales of the upcoming iPhones since public reaction to the notch has largely been negative.

Additionally, the integration of 5G support is likely to be a boon for the company, with the global adoption of 5G poised to take off by 2021.

Intensifying Competition

Apple has lost a lot of market share due to its premium pricing policy and attractive devices from companies like Samsung and Huawei.

Notably, per Gartner, Apple had a market share of 10.5% in third-quarter 2019 whereas Samsung and Huawei had market share of 20.4% and 17%, respectively.

Additionally, the upcoming launch of Samsung’s Galaxy Note 10 5G and Alphabet’s (GOOGL - Free Report) Google Pixel 4 are expected to provide stiff competition to upcoming iPhone handsets.

Zacks Rank

Apple currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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