Apple's iPhone Launch -- 3 Key Things to Know

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Apple (AAPL) - Get Report will launch three new iPhones September 10, and there are a few key points investors should understand. 

The stock was falling 1.84% to $204.90 Tuesday, September 3, as 15% of tariffs on $300 billion worth of Chinese goods went into effect. Some of those goods are Apple hardware products. 

Here are three things to know when it comes to the new batch of phones. 

The iPhone 11

The "base" version of the iPhone 11 will be $749. But the more anticipated iPhone 11 Pro will go for $999 and the iPhone Pro Max will be $1,099. 

Wedbush Securities analyst Dan Ives expects Apple to have built 75 million to 80 million iPhones for the September launch, a slight increase over last year's releases. He expects strong demand, especially as tariffs on smartphones coming into the U.S. wouldn't go into effect until December.  

Improvements

The new phones, especially the iPhone 11 Pro and iPhone 11 Pro Max, will have better camera and video capabilities, as they'll use artificial intelligence to power the new features. 

But the innovation curve on the hardware side of Apple's business is flattening, as many have observed for the past several years now. 

The Bigger Picture (Services)

Apple needs to competitive enough in the smartphones and hardware market to funnel its user base into its slate of new-and-improved services. 

Apple's installed base is slightly less than 1 billion people worldwide. It wants to maintain that installed base with hardware products on par with or slightly better than those of its competitors. Analysts and investors have also noted in the past that switching costs for users are high and burdensome. Nonetheless, Apple wants to be competitive. 

If Apple can maintain its user base, it can funnel those users into new services like its newly launched Apple Card with Goldman Sachs, Apple TV Plus and Apple News Plus, among several others. 

Apple wants to see the majority of revenue and earnings shift into services rather than hardware. A trend moving in that direction would indicate Apple is the growth business many think it can still be. 

AAPL is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL? Learn more now. 

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