Apple's iPhone 11 Launch: What to Expect, How It Furthers Services Strategy

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Apple (AAPL) - Get Report wants to innovate on its hardware products enough to keep its user base loyal, so those users can adopt  the behemoth's new suite of improving services. 

Tuesday, Apple will unveil its new iPhone 11's and may talk about new developments with services. The company will release its base iPhone 11 for $749, iPhone 11 Pro for $999, and iPhone 11 Pro Max for $1,099. One analyst is looking for Apple to sell roughly 75 million iPhones, low compared to the roughly 100 million it sold in 2014.

Innovation has inevitably curbed over the years, and now Apple wants to keep its total device user base of roughly 1.4 billion -- encapsulating iPhone, iPad, Mac and Apple Watch users -- loyal so it can access new services. But the innovation curve may not be flattening as much as some may think.

"The expectations here are so incredibly low," Jim Cramer said on TheStreet's morning show Monday.

But "they're still innovating [on hardware] in a lot of ways," said TheStreet's tech columnist Eric Jhonsa. "You might have larger hardware improvements next year, but they're still innovating in ways such as cameras, processes, so it's more gradual... but the user base has stayed pretty loyal." 

Here's the bigger picture. 

These advances should be strong enough to keep users happy, but Apple may need to keep its user base growing at least incrementally in order to meet Wall Street expectations on sales and earnings growth for its services unit.

On services, many analysts think Apple can aggressively invest in content, as it has over $200 billion of cash and equivalents. Still, without a huge content base initially, Apple may bundle services across entertainment streaming, news and other segments. Competition from content-rich competitors Netflix (NFLX) - Get Report , Disney (DIS) - Get Report and others isn't going away anytime soon. 

Apple and Disney are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these? Learn more now.

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