Apple Poised For New iPhone Release

Shares of Apple gained 0.4% on Monday ahead of the release of the newest iPhone models, which could give Apple a serious boost in sales.

Several Wall Street analysts have said Apple could sell as many as 200 million iPhone’s to existing users as upgrades to their current iPhone models. Most of those sales could come from China, despite the ongoing trade war between the U.S. and China. The estimates come based on the roughly 200 million iPhone 6 or earlier models that will need to be upgraded.

It isn’t confirmed yet, but Apple is expected to launch three new iPhones on Tuesday, featuring improvements such as new camera functionality, upgraded processors, and the release of the Apple streaming service that will compete with Netflix, Disney+ and others.

Apple struggled with user upgrades in the last cycle, which increases the probability of users upgrading this time around. There are roughly 60-70 million customers in China due for an upgrade at this point. Additionally there are roughly 900 million global users and the weak sales of the iPhone X and tight control on pricing is likely to spur demand for users who have been holding off.

It is expected that Apple will launch three smartphones: a low-priced 6.1 inch 11R, a 5.8-inch iPhone 11 Pro, and a 6.5-inch 11 Pro Max. Pricing for those models is expected to be in-line with current pricing models, with Apple pushing tariffs to customers rather than trying to increase unit sales.

Shares of Apple are up 35.8% since the start of the year.

Apple year to date chart