'Spring Loaded' event to focus on iPads with a 'few surprises,' analyst says

Posted:
in AAPL Investors
Investment bank Wedbush is expecting the "Spring Loaded" Apple Event to focus on iPad models but says that "a few surprises" could also be in the works.

Credit: Andrew O'Hara, AppleInsider
Credit: Andrew O'Hara, AppleInsider


In a note to investors seen by AppleInsider, lead analyst Daniel Ives says that the April 20 announcement event will kick off a significant product refresh year for Apple.

Ives expects the main focus to be iPad models, and specifically updates to the iPad Pro, iPad mini, and low-cost iPad lineups. He believes that the most significant changes will come to the 11-inch iPad Pro and the 12.9-inch iPad Pro.

For the iPad Pro models, Ives believes Apple will refresh them with a new A14X chipset, mini-LED displays with better color performance, dimming capabilities, and higher contrast. He expects modest price increases for the iPad Pro models but adds that Apple will keep the price consistent for the iPad mini and 10.2-inch iPad.

The analyst believes that the current work-from-home and remote education environment has allowed Apple to see a "major renaissance" of growth for the iPad lineup. He believes there's still pent-up demand for iPads since only about 40% of users have upgraded their tablets in the past year.

In addition to the iPad launches, the analyst says that Apple could unveil a few surprise products during the event. That could include new colorful iMac versions, an updated Apple Pencil, or the long-awaited "AirTags" tracking devices.

Although there's the possibility that Apple could give some hints about an upcoming "AirPods 3" model, Ives says that the launch will likely take place at a separate event in early summer.

"Taking a step back, we believe Apple is still in the middle innings of its biggest product cycle year ever across iMacs, iPads, AirPods, Apple Watch, and of course the iPhone 12 supercycle which is set to be followed by the iPhone 13 unveil this Fall," Ives writes.

The analyst also says that Asia supply chain checks indicate build numbers in the 100 million range, compared to initial iPhone 12 reads at 80 million units. That would represent a 25% increase year-over-year. Altogether, he believes the outlook paints a picture of growth that could extend into 2022, despite current supply constraints related to semiconductor shortages.

"While chip shortages linger, we believe Apple has a yellow brick road of growth ahead led by its iPhone supercycle and new product launches across its entire hardware ecosystem," the analyst writes.

Ives is maintaining Apple as a top pick and is keeping his 12-month AAPL price target of $175. That's based on a sum-of-the-parts valuation on Wedbush's 2022 estimates, including a 16x multiple on Apple's Services at $1.2 trillion and a 7x multiple on Apple's hardware business at $1.9 trillion.

Comments

  • Reply 1 of 15
    AppleZuluAppleZulu Posts: 1,104member
    I’m not holding my breath, but one hope would be a surprise re-entry into the router market, with HomeKit-enhanced WiFi6 mesh devices. 
    Scot1spock1234cg27pulseimagesswat671iqatedowatto_cobra
  • Reply 2 of 15
    AppleZulu said:
    .... router market, with HomeKit-enhanced WiFi6 mesh devices. 
    I would love that! 

    I am still using an old AirPort Extreme (the tall one), because I have not found an acceptable replacement. The new Mesh WiFi options are tempting, but I don’t trust their security as much as I do Apple’s. 

    C’mon Tim Apple, Make Home Networks Great Again! (Just making a funny pop-culture reference - please don’t respond with political comments)
    edited April 19 cg27watto_cobra
  • Reply 3 of 15
    dewmedewme Posts: 3,691member
    Perhaps a return of the different color iMacs with some sort of "spring loaded" mount that allow height, fore-aft, and landscape-to-portrait screen adjustment, up to and including the ability to function as a giant drawing pad like Microsoft's Surface Studio with a touch screen and support for Apple Pencil 3?

    Imagine a scaled-up Magic Keyboard for iPad for the iMac, but with a detachable keyboard instead of the current iMac base. This would require some sort of magic spring to keep the whole thing stable.

    Or maybe a coil-over-shock suspension system for the Mac Pro wheels - with a $1499 USD MSRP.
    edited April 19 spock1234
  • Reply 4 of 15
    DAalsethDAalseth Posts: 1,620member
    He believes there's still pent-up demand for iPads since only about 40% of users have upgraded their tablets in the past year.
    In the past YEAR? Hell my iPP is closing in on four years. I’m thinking of upgrading but Apple’s gonna have to wow me with something big because this old thing is rock solid. It does everything I want and runs any software. 


    watto_cobra
  • Reply 5 of 15
    One possible surprise is how an Apple version of a mini-LED screen will actually spec out. For example, it's a technology that has a fairly wide range of possible sizes for each individual mini-LED. Will Apple go small and pack an unusually high number of mini-LEDs relative to the screen sizes?
    watto_cobra
  • Reply 6 of 15
    bluefire1bluefire1 Posts: 1,124member
    I hope they also announce a Magsafe battery.
    edited April 19 watto_cobra
  • Reply 7 of 15
    cg27cg27 Posts: 125member
    spock1234 said:
    AppleZulu said:
    .... router market, with HomeKit-enhanced WiFi6 mesh devices. 
    I would love that! 

    I am still using an old AirPort Extreme (the tall one), because I have not found an acceptable replacement. The new Mesh WiFi options are tempting, but I don’t trust their security as much as I do Apple’s. 

    C’mon Tim Apple, Make Home Networks Great Again! (Just making a funny pop-culture reference - please don’t respond with political comments)
    Totally agree that Apple should get back into this, but with WiFi 6e.

    If they’re coming out with new HomeKit/Siri/Speaker/AppleTV/iPad hubs that would be ideal.  Have an option where HomePod minis could be the mesh satellites?
    Scot1watto_cobra
  • Reply 8 of 15
    blastdoorblastdoor Posts: 2,390member
    DAalseth said:
    He believes there's still pent-up demand for iPads since only about 40% of users have upgraded their tablets in the past year.
    In the past YEAR? Hell my iPP is closing in on four years. I’m thinking of upgrading but Apple’s gonna have to wow me with something big because this old thing is rock solid. It does everything I want and runs any software. 


    Same here -- 12.9" with A10X. 

    I bought the IPP along with keyboard and pencil to see if I would really use it for "work" purposes. The answer is generally 'no.' And now with ASi Macs I really doubt that I'll use the iPad for anything more than video, music, web surfing, e-mail, and games. 

    But I love it for those uses and I prefer the big 12.9" screen to the smaller versions. 

    So I probably will one day buy a new large IPP, but it will be a while. I bet the thing that gets me to upgrade will be a dying battery. 
    watto_cobra
  • Reply 9 of 15
    entropysentropys Posts: 3,006member
    DAalseth said:
    He believes there's still pent-up demand for iPads since only about 40% of users have upgraded their tablets in the past year.
    In the past YEAR? Hell my iPP is closing in on four years. I’m thinking of upgrading but Apple’s gonna have to wow me with something big because this old thing is rock solid. It does everything I want and runs any software. 


    My IPP 10.5 is perfectly functional except the battery is dying (only gets about five hours of heavy use!) and there is stagelight about 5cm above the home button. Only annoying when I look directly at it, but still.

    I think I will replace it around September, to see what else is on offer then.
    watto_cobra
  • Reply 10 of 15
    dewmedewme Posts: 3,691member
    I hope one of the non-surprises is the availability of GM releases for iOS/iPadOS 14.5 and macOS 11.3.
    steve_jobs
  • Reply 11 of 15
    AppleZulu said:
    I’m not holding my breath, but one hope would be a surprise re-entry into the router market, with HomeKit-enhanced WiFi6 mesh devices. 
    I hope too. Too bad I had to give in and get a Linksys wifi 6 mesh system. We had a AirPort Extreme wifi n router, and second express extender, but after getting a new smart home theater setup, we realized the AirPort Extreme setup just wouldn’t cut it anymore. I’m just bummed that I didn’t know about the new 6e systems yet. But, they haven’t come out yet, so that’s a moot point.  
    watto_cobra
  • Reply 12 of 15
    The Apple logo in the invite was a spring. What has a spring? Maybe a foldable iPhone? 👀
    watto_cobra
  • Reply 13 of 15
    iqatedoiqatedo Posts: 1,722member
    DAalseth said:
    He believes there's still pent-up demand for iPads since only about 40% of users have upgraded their tablets in the past year.
    In the past YEAR? Hell my iPP is closing in on four years. I’m thinking of upgrading but Apple’s gonna have to wow me with something big because this old thing is rock solid. It does everything I want and runs any software. 


    Using my first generation daily. Good battery life still.
    watto_cobra
  • Reply 14 of 15
    iqatedoiqatedo Posts: 1,722member
    Hopeful for an iMac, preferably with a 27" or greater screen. Ready to buy.
    watto_cobra
  • Reply 15 of 15
    hentaiboyhentaiboy Posts: 1,243member
    entropys said:
    DAalseth said:
    He believes there's still pent-up demand for iPads since only about 40% of users have upgraded their tablets in the past year.
    In the past YEAR? Hell my iPP is closing in on four years. I’m thinking of upgrading but Apple’s gonna have to wow me with something big because this old thing is rock solid. It does everything I want and runs any software. 


    My IPP 10.5 is perfectly functional except the battery is dying (only gets about five hours of heavy use!) and there is stagelight about 5cm above the home button. Only annoying when I look directly at it, but still.
    Bright spot known defect and covered under warranty. I had my 10.5 replaced last year for it.
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