Why AirPods Pro means a healthy holiday season for Apple: Citi Analyst
In This Article:
Apple (AAPL) is giving its fans a new product to salivate over ahead of the holiday shopping season.
In a surprise announcement, the tech giant revealed on Monday that it was releasing a Pro version of its wireless AirPod earbuds — just in time for the holidays.
When they’re released on October 30, AirPods Pro will include a fresh design and features—including noise-cancelling technology—to justify a price tag of $249. The current generation of AirPods start at $159.
It’s making some Wall Street analysts even more bullish on Apple’s year-end performance.
“I do think the product will be a great stocking stuffer,” Citi research analyst Jim Suva told Yahoo Finance’s YFi PM. “For the average consumer, they’re great and they’re good enhancements.”
‘Beyond the iPhone’
The success of AirPods since they first hit the market in 2016 gives Suva reason for optimism about the Pro’s prospects.
“People use them a lot,” Suva said. “Whether they’re driving in their car, walking down the street, or doing conference calls as they’re running around with their family or children or friends.”
According to the analyst, the premium earbuds are another important example of Apple’s push to better expand what it’s offering to consumers beyond the iPhone.
“They fall into the the category of Apple doing things beyond the iPhone. Now you have these AirPods and also other services such as Apple Arcade, and Apple TV+,” Suva stated, referencing its new original streaming service that debuts this week.
“Investors have gone from under-owning, or having a lot of concerns about Apple, to actually liking it,” he added.
In Suva’s view, positive developments between the U.S. and China over trade will also likely give a boost to Apple in the months ahead.
“A lot of these fears have started to be mitigated and become less worrisome,” according to Suva. “We think it’s going to be a good, healthy Christmas holiday season for Apple.”
Nick Robertson is a senior producer at Yahoo Finance.
READ MORE:
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.