Apple (NASDAQ:AAPL) announced new models of both the iPhone and the iPod touch this afternoon at a conference in New York. The iPhone 5 is slimmer and lighter than any previous iPhone and carries an LTE radio to bring it up to similar specifications of the best that Google’s (NASDAQ:GOOG) Android OEMs are bringing to the table. the screen has been lengthened to 4″ from 3.5″ and with it the screen resolution while maintain the pixel density of their Retina Display. It’s a nice piece of work that finally ditched the fragile glass backing plate for a brushed aluminum body.
Looking side by side with the latest competition there is nothing revolutionary in the new iPhone but is that really needed at this point. The smart phone is now a conduit for what you want to get done during the day and the question for Apple users will be is there enough new coolness to upgrade over the 4S, especially for those where LTE is not available and won’t be anytime soon?
The fact that Apple is releasing this at the same price points as the 4S makes it clear that they have heard the pitter patter of the $99 smart phone and are now willing to accept lower margins going forward. For investors you better be convinced that Apple can sell these in increasing volume over their competitors or the valuation is going to be hard to justify from here with just a 1.65% dividend.
Apple’s stock was up $9.20 on the day to $669.79. For a comparison of the latest flagship phones go here.Texas Instruments Reduces its Third Quarter Outlook