JPMorgan Chase: Apple may adjust iPhone release strategy to twice a year

Analysts at JPMorgan Chase predict that Apple may change its annual iPhone launch event to twice a year starting in 2021. This move will help Apple better meet seasonal demand and allow Apple to adjust its products more flexibly to compete with other mobile phone manufacturers.

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According to Sina Finance, since 2011, Apple has usually released new iPhones in September and October and sold them heavily during the Thanksgiving and Christmas holidays. Analysts at JPMorgan Chase said that if Apple releases new iPhones twice a year, it would be a major strategic shift for Apple's most important product line.

"Based on our supply chain checks, we expect a strategic change in the cadence of new product launches," said Samik Chatterjee, an analyst at JPMorgan Chase. "We expect Apple to release two new iPhones each in the first and second half of 2021, which will help seasonal demand."

Analysts also expect Apple to launch four new iPhones in September 2020, a departure from the company’s strategy of launching three iPhone models since 2017. They also believe that Apple will release a low-end product similar to the iPhone 8.

Analysts at JPMorgan Chase predict that Apple may change its annual iPhone launch event to twice a year starting in 2021. This move will help Apple better meet seasonal demand and allow Apple to adjust its products more flexibly to compete with other mobile phone manufacturers.

According to Sina Finance, since 2011, Apple has usually released new iPhones in September and October and sold them heavily during the Thanksgiving and Christmas holidays. Analysts at JPMorgan Chase said that if Apple releases new iPhones twice a year, it would be a major strategic shift for Apple's most important product line.

"Based on our supply chain checks, we expect a strategic change in the cadence of new product launches," said Samik Chatterjee, an analyst at JPMorgan Chase. "We expect Apple to release two new iPhones each in the first and second half of 2021, which will help seasonal demand."

Analysts also expect Apple to launch four new iPhones in September 2020, a departure from the three iPhone models Apple has been using since 2017. They also believe that Apple will release a low-end product similar to the iPhone 8. Earlier, according to media reports, Apple will launch a smaller 5.4-inch iPhone, an iPhone with a 6.1-inch screen, and an iPhone with a 6.7-inch screen next year. 6.7 inches will be the largest size of all Apple mobile phone models. Currently, Apple's latest series in 2019 includes: iPhone 11 with a 6.1-inch screen, iPhone 11 Pro with a 5.8-inch screen, and iPhone 11 Pro Max with a 6.5-inch screen.

JPMorgan analysts predict that all four devices launching next fall will have OLED screens and support 5G networks.

Chatterjee said: "All four new iPhones in the second half of next year will have OLED displays. We expect the two high-end models (6.1-inch and 6.7-inch) to support mmWave and be equipped with triple cameras, while the two low-end models (6.1-inch and 5.4-inch) will only support sub-6GHz bands and be equipped with dual cameras."

Analysts noted that increased screen size options and 5G support could encourage current iPhone users to upgrade. Currently, JPMorgan has an overweight rating on Apple and raised its 12-month price target to $296 from $290.

In 2019, Apple will launch a smaller 5.4-inch iPhone, a 6.1-inch iPhone, and a 6.7-inch iPhone. The 6.7-inch model will be the largest size of all Apple mobile phone models. Currently, Apple's latest series in 2019 includes: iPhone 11 with a 6.1-inch screen, iPhone 11 Pro with a 5.8-inch screen, and iPhone 11 Pro Max with a 6.5-inch screen.

JPMorgan analysts predict that all four devices launching next fall will have OLED screens and support 5G networks.

Chatterjee said: "All four new iPhones in the second half of next year will have OLED displays. We expect the two high-end models (6.1-inch and 6.7-inch) to support mmWave and be equipped with triple cameras, while the two low-end models (6.1-inch and 5.4-inch) will only support sub-6GHz bands and be equipped with dual cameras."

Analysts noted that increased screen size options and 5G support could encourage current iPhone users to upgrade. Currently, JPMorgan has an overweight rating on Apple and raised its 12-month price target to $296 from $290.