Skip to main content

Key Takeaways On Apple's Unleashed Event: Beyond Expectations

On October 18, Apple hosted its last product launch event of 2021. The announcements topped our expectations and boded well for the investment thesis.

After Apple  (AAPL) - Get Free Report recently refreshed its lineup of iPhone, Watch and iPad, it was time for the MacBook Pro to become the star of the show – alongside a few music-related products and services.

Figure 1: Apple's "Unleashed" Event.

Figure 1: Apple's "Unleashed" Event.

Apple’s Mac division is currently facing very tough pandemic-year comps. To produce compelling segment revenue growth (or growth at all) in the next 12 months, the Cupertino company needs to pull a rabbit out of a hat. Perhaps this Monday’s event proved that Apple could do just that.

(Read more from the Apple Maven: “Unleashed” in Real Time: Live Blog For Apple Stock Investors)

Product launch beyond expectations

The Mac took center stage on Monday, as expected. However, the specific announcements impressed us as well as Apple investors, as evident in bullish stock price action throughout the trading session.

Apple dazzled on the performance of its new chips, the M1 Pro and Max, and on how quickly the company can bring the new MacBook Pro models to market amid so much supply chain disruption. The Cupertino company continues to push the envelope on the technology, and the move to internally designed silicon seems to be paying off.

The product improvements have been noticeable and impressive, which is great news for users and investors. First, the new MacBook Pro devices are very fast. In addition, they feature new aluminum enclosure, more air intake, more ports, and new camera notch design. The screen wraps around the camera notch, as is the case with the iPhone, to allow for larger displays. The 16-inch model has now become a 16.2-inch device, while the 14.2-inch model was also unveiled.

Keep in mind that, when it comes to Mac segment comps, Apple has a large wall to climb in the next few quarters. But the company has done exactly what we believe it needs to have a good chance at delivering strong Mac revenue numbers through 2022.

Figure 2: Mac growth.

Figure 2: Mac growth.

(Read more from the Apple Maven: Why iPhone Supply Hiccup Is Not A Problem For Apple Stock)

Focus on music consumption

Parallel to Apple’s Mac business, it was interesting to see announcements on music-related products and services. The Cupertino company delivered news on a cheaper Apple Music Voice Plan, HomePod mini Color for $99, and Third Generation AirPods.

We were able to pick up on two themes here. First, Apple has been certainly focusing on audio content consumption, a potential area of growth for the company. Second, when it comes to music, Apple seems to be reaching towards the more price-sensitive, casual users – think younger audience, for example, or maybe developing markets as well.

The strategy of widening the reach across the price spectrum worked for the iPhone in the past few years, although not without hiccups here and there (e.g. iPhone SE). It could very well work for music services and devices as well.

Get more expert analysis on AAPL

It’s never too early (or late) to start growing your investment portfolio. Join the Real Money community for just $7.50/month and unlock expert advice from our team of 30+ investing pros.

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)