In a post on X, Munster noted the improved storage and advanced chip capabilities on iPhone 17e compared to iPhone 16e‌, but said the similar starting price would draw in more price-conscious customers to the new version.

  • Munster also noted that the average selling price (ASP) of iPhone 17e would be about 27% lower compared to the overall iPhone’s ASP, "so the impact to sales will trail impact to units."
  • About Apple’s new iPad Air featuring M4 and higher memory at the same $599 entry price, Munster said it doesn't move the needle, given the iPad only accounts for about 7% of Apple’s revenue. 
  • He added that he would be looking out for the lower-priced MacBook.

Apple Inc.’s latest iPhone 17e, open for pre-order on March 4 and expected in stores on March 11, will boost phone sales by around 2%, said Deepwater Management founder Gene Munster.

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In a post on X on Monday, Munster noted the improved storage and advanced chip capabilities on the latest release compared to Apple’s (AAPL) earlier iPhone 16e‌ but said the similar starting price would draw in more price-conscious customers to the new version.

“$AAPL announces (as expected) iPhone 17e. Same $599 starting price as the 16e, but with 256GB of storage vs. 128GB on the 16e and better chip,” Munster said.

The Rationale

Munster explained that he estimates the "e" iPhone models to account for about 20% of total units sold in March and June, subsequently declining to 15% of total units.

If the latest iPhone 17e were to increase growth by 15% for a few upcoming quarters, and then normalize, it would boost overall units by 3% for the quarters, and then 1.5% for the next year.

Munster also noted that the average selling price (ASP) of iPhone 17e would be about 27% lower compared to the overall iPhone’s ASP, "so the impact to sales will trail impact to units."

About Apple’s new iPad Air featuring M4 and higher memory at the same $599 entry price, Munster said it “doesn't move the needle,” given the iPad only accounts for about 7% of Apple’s revenue. “The Air accounts for about half of that, or 3.5% of sales. A modest short-term bump is largely irrelevant,” he added.

“I'm looking out for that lower priced Mac,” he said in a separate X post.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around AAPL shares was in the ‘bearish’ territory over the past 24 hours amid ‘low’ message volumes at the time of writing.

Shares of AAPL have gained more than 11% in the past year.

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