Apple event 'largely' met expectations analysts say, except one iPhone-related surprise
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Apple (NASDAQ:AAPL) held the first of potentially two product events on Wednesday, where it unveiled updates to its iPhone, Apple Watch and AirPods lines. And while investment firm Morgan Stanley said the event was "largely in-line with expectations," there was one surprise.
Analyst Erik Woodring noted that the October 7 launch of the iPhone 14 Plus is a bit eye opening, given the other iPhone 14 models will launch in late September, potentially due to production delays.
"However, we see a limited impact to September [quarter] seasonality, especially given the other 3 iPhone 14 models are being released 1 week earlier than 'normal,' and maintain our forecast for 51M iPhone shipments in the September quarter," Woodring, who has an outperform rating on Apple (AAPL) and a $180 price target, wrote in a note to clients.
The analyst added that another important takeaway, perhaps the biggest, was that Apple (AAPL) kept like-for-like iPhone pricing "unchanged." The iPhone 14 and iPhone 14 Plus starting at $799 and $899, while new iPhone 14 Pro and iPhone 14 Pro Max start at $999 and $1,099, respectively.
This may be important to watch, especially as the global economy gets weaker and worries of a recession may impact consumer spending.
"While the consumer spending environment remains challenging (and a debate that is still unresolved), we believe Apple remains best positioned to weather the storm," Woodring added.
The analyst raised his fiscal fourth-quarter and full-year revenue and earnings estimates between 1% and 3%, as iPhone average selling prices are now expected to be $845 in the fourth-quarter and $900 in fiscal 2023 following the pricing announcements.
Citi analyst Jim Suva, who has a buy rating and a $185 price target on Apple (AAPL), also called out the steady pricing for the new iPhones, but saw it differently, worrying they could weigh on investors' sentiment.
"Apple maintained the price points across the range of devices introduced ... despite higher component costs and supply chain costs, which we believe will likely weigh on investor concerns around margins," Suva wrote in a note to clients. 
"Post launch, Apple shares have relatively underperformed the broader market and we do expect that shares could see similar moves now that the event has taken place."
Last month, it was reported that Apple (AAPL) was looking to start producing the iPhone 14 in India about two months after its release out of China to cut the production lag between the two countries.