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Apple sees $81 billion in market value erased as it unveils its first 5G iPhones

Apple sees $81 billion in market value erased as it unveils its first 5G iPhones



icon: iPhone 12 Apple


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iPhone 12 Apple

Apple tumbled as much as 4% on Tuesday as the company unveiled its latest iPhones.

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The tech giant revealed its first 5G-capable lineup of phones spread across four new models. The iPhone 12 will be available in a 6.1-inch size and as a 5.4-inch variant deemed the iPhone 12 mini. The premium iPhone 12 Pro will be sold in 6.1-inch and 6.7-inch sizes. The new phones will also boast more durable screens, upgraded cameras, and a faster processor.

Shares traded at an intraday loss before the event but slid further after the reveal began at 1 p.m. ET. At the stock’s intraday low of $119.65 per share, Apple saw $81 billion erased from its market capitalization.

Read more: Apple just unveiled the first iPhones that include 5G technology. A Neuberger Berman investment chief says he’s identified 3 overlooked ways to profit from the world-changing innovation.

The company also revealed the HomePod mini, a smaller and less expensive alternative to its smart speaker. The new speaker launches in November for $99.

Though much of the event brought highly anticipated additions to the new generation of iPhones, some elements of the launch may have rankled consumers. For one, the phones will be the first to lack wired earbuds and a power adapter in the box. Apple touted the items’ exclusion as a major step toward reaching full carbon neutrality.

Analysts expect the new iPhones to drive a stronger-than-usual cycle of upgrades among Apple customers. The inclusion of 5G marks the first major step forward in iPhone’s cellular technology since the iPhone 5 was released in 2013. The iPhone 12 also introduces the first major design overhaul for the handset since the iPhone X’s 2017 release.

Read more: MORGAN STANLEY: Buy these 44 cheap stocks poised

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Apple prepares to launch 5G iPhones into unready U.S. market

Apple prepares to launch 5G iPhones into unready U.S. market

Apple is set to embrace 5G as one of its most significant additions to this year’s iPhones, but the technology is still not ready for the masses in the U.S.

That’s because the country’s three largest wireless carriers, Verizon Communications Inc., AT&T Inc. and T-Mobile US Inc., have yet to roll out 5G in a way that provides consistently higher data speeds or widespread coverage. If these companies do not dramatically upgrade their networks soon, many consumers buying the latest iPhones could find this year’s premier feature underwhelming.

The addition of 5G will be a key talking point at Tuesday’s iPhone event, underscored by Apple’s tagline: “Hi, Speed.” The new wireless technology lets phones download data from a cellular connection many times faster than 4G LTE, the current standard — but 5G coverage remains scarce in many advanced markets.

Phone makers, including Samsung Electronics, started rolling out phones with 5G last year. Google announced its own 5G phones last month.

Apple has asked suppliers to build as many as 80 million of the new iPhones this year, Bloomberg News has reported. Investors and analysts are bullish about the devices, partly because 5G networks are more built out in China. This year’s crop of new iPhones also marks the first major redesign in three years, which could spur more upgrades.

“The increased speed capability of the new 5G iPhones should create a catalyst for a major upgrade cycle,” said Dan Morgan, a senior portfolio manager at Synovus Trust Company. “I would expect sales in China to be robust.” An Apple spokeswoman declined to comment.

In the first quarter this year, phone makers led by Samsung shipped 3.4 million 5G phones in the U.S., a fraction of the overall market, Strategy Analytics data show. In a few other countries, 5G has performed

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Apple’s new 5G iPhones may be left on the shelf

Apple’s new 5G iPhones may be left on the shelf

Apple has been in the spotlight lately, between antitrust scrutiny of its mobile operating system and the legal battle it’s waging with Fortnite-maker Epic Games over its App Store. Those developments pale, however, in comparison to the company’s main event next week: the unveiling of its latest iPhones.

For all the talk about Apple’s shift to services and subscriptions, the tech giant’s business is still dependent on its core hardware products, so Tuesday’s presentation will be a must-see for investors. There could be a problem this year, though. The lineup’s most vaunted feature — fifth-generation wireless capability — may not be ready for prime time.

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        

 

The Cupertino, California-based company is expected to unveil four new iPhone models with 5G capabilities as well as a different physical design and a wider choice of screen sizes, Bloomberg News reported last month. Apple is already touting the new technology’s attributes: Earlier this week, it sent the press an invitation to Tuesday’s event with the cheeky pun “Hi, Speed” as the subject line, referencing the fast new 5G networks.

Investors are betting the iPhones will be a blockbuster success and spur consumers to upgrade. Shares of Apple have risen more than 50% this year and now trade at roughly 31 times the next four quarters’ earnings, nearly double its historical five-year average of 16. And those earnings estimates also have high embedded assumptions. To take one example, Morgan Stanley forecasts Apple’s iPhone sales will grow by 28% in its fiscal year ending in September 2021. That would mark a dramatic turnaround from the 14% sales drop in fiscal 2019 and the estimated 7% decline for 2020.

An elevated valuation would be fine if the new iPhones sell well, but the lackluster reality surrounding the current state of 5G networks could lead to underwhelming demand.

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Apple prepares to launch 5G iPhones into unready US market

Apple prepares to launch 5G iPhones into unready US market

Apple Inc. is set to embrace 5G as one of its most significant additions to this year’s iPhones, but the technology is still not ready for the masses in the United States.

That’s because the country’s three largest wireless carriers, Verizon Communications Inc., AT&T Inc., and T-Mobile US Inc., have yet to roll out 5G in a way that provides consistently higher data speeds or widespread coverage. If these companies do not dramatically upgrade their networks soon, many consumers buying the latest iPhones could find this year’s premier feature underwhelming.

The addition of 5G will be a key talking point at Tuesday’s iPhone event, underscored by Apple’s tagline: “Hi, Speed.” The new wireless technology lets phones download data from a cellular connection many times faster than 4G LTE, the current standard — but 5G coverage remains scarce in many advanced markets.

Phone makers, including Samsung Electronics Co., started rolling out phones with 5G last year. Google announced its own 5G phones last month.

Investors and analysts are bullish about the devices, partly because 5G networks are more built out in China. This year’s crop of new iPhones also marks the first major redesign in three years, which could spur more upgrades.

In the first quarter this year, phone makers led by Samsung shipped 3.4 million 5G phones in the United States, a fraction of the overall market, Strategy Analytics data show. In a few other countries, 5G has performed far better. A third of phone sales in China during the second quarter were 5G handsets, according to Counterpoint Research.

Tests by IHS Markit’s RootMetrics across 125 US areas in the first half of 2020 showed that 5G speeds on AT&T, T-Mobile and Sprint are only slightly faster than 4G LTE. AT&T and T-Mobile, which is buying Sprint, have both claimed

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Apple (AAPL) Prepares to Launch 5G iPhones Into Unready U.S. Market

Apple (AAPL) Prepares to Launch 5G iPhones Into Unready U.S. Market

Consumers Line Up As Apple's iPhone 11 Goes On Sale In Stores

Photographer: Drew Angerer/Getty Images

Apple Inc. is set to embrace 5G as one of its most significant additions to this year’s iPhones, but the technology is still not ready for the masses in the U.S.

That’s because the country’s three largest wireless carriers, Verizon Communications Inc., AT&T Inc. and T-Mobile US Inc., have yet to roll out 5G in a way that provides consistently higher data speeds or widespread coverage. If these companies do not dramatically upgrade their networks soon, many consumers buying the latest iPhones could find this year’s premier feature underwhelming.

The addition of 5G will be a key talking point at Tuesday’s iPhone event, underscored by Apple’s tagline: “Hi, Speed.” The new wireless technology lets phones download data from a cellular connection many times faster than 4G LTE, the current standard — but 5G coverage remains scarce in many advanced markets.

Phone makers, including Samsung Electronics Co., started rolling out phones with 5G last year. Google announced its own 5G phones last month.

Apple has asked suppliers to build as many as 80 million of the new iPhones this year, Bloomberg News has reported. Investors and analysts are bullish about the devices, partly because 5G networks are more built out in China. This year’s crop of new iPhones also marks the first major redesign in three years, which could spur more upgrades.

“The increased speed capability of the new 5G iPhones should create a catalyst for a major upgrade cycle,” said Dan Morgan, a senior portfolio manager at Synovus Trust Company. “I would expect sales in China to be robust.” An Apple spokeswoman declined to comment.

5G Lift

Apple is expected to sell a lot more iPhones by its 2021 fiscal year

Source: Sanford C. Bernstein estimates

In the first quarter this year,

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