The iPhone 12 comes with a new feature called MagSafe. This is an old MacBook feature now revived across the whole spectrum of iPhone 12 handsets. MagSafe lets users easily attach accessories magnetically to the back of the unit, whilst enabling fast charging through new Apple MagSafe chargers. It is also enabled by the new MagSafe-ready iPhone cases.
Why can Apple drive more sales through the feature? Ong explained: “While the size of the iPhone is often communicated to third-party case and accessory makers well in advance, we don't get the sense that the presence of MagSafe was communicated to a significant number of accessory makers in advance. And it appears to us that MagSafe-ready cases and accessories present an advantage to those that are not MagSafe capable.”
As an example, Ong points out that despite the case creating a bigger distance between the iPhone and the charger, the MagSafe enabled official iPhone 12 cases will allow the handset to charge wirelessly at 15W, something third-party iPhone case manufacturers may not be able to achieve.
“We postulate that some third-party cases will impede a consumer's ability to use MagSafe to charge their iPhone, whether impacting the speed (15W, according to AAPL) or impacting the connection more generally,” Ong remarked.
Further down the line, Ong sees car-attachments using MagSafe as the docking system or a MagSafe battery attachment being developed for situations requiring large amounts of power.
“All of these products could drive outsized accessories sales to AAPL as the company has naturally had more time to develop products that utilize MagSafe technology,” Ong concluded.
The majority of Street analysts also say Buy – 25, in fact. AAPL's Moderate Buy consensus rating is completed with the addition of 8 Holds and 3 Sells. Meanwhile, the forecast is for a 7% upside, as indicated by the $123.66 average price target. (See Apple stock analysis on TipRanks)
To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.