Apple’s annual new product day, held last week, is an event that loyal users, techies, and investors alike eagerly await. They announced upgrades for the iPhone 14, The Pro and Pro Max models, The Apple Watch series 8, and added a new Ultra-Watch, which should all continue to drive iPhone and Watch sales.

Life-Saving Features

 Both the iPhone and Watch come with a new vehicle crash detection hardware.

• The iPhone is updated with an impressive satellite emergency SOS software.
• The Ultra-Watch, targeted towards extreme sport enthusiasts, has new precision GPS, is water resistant up to 100 meters, and can emit high decibel location signals.

Video Creation Proliferates

• The Pro and Pro Max iPhone models have a new camera with an impressive 48-megapixel lens and enhanced stabilization for “action mode” that can deliver cinematic quality videos.

Some Things Haven’t Changed

With the recent rise in inflation, many investors were hoping for a US$100 price increase for the new iPhones, but consumers will be happy to hear that Apple kept the pricing the same as in prior years.  Nonetheless, our investment thesis remains intact with a material opportunity for large scale product upgrades as 20% to 30% of its +1 billion users are still using an iPhone or Apple Watch more than 3.5 years old.