On March 8, Apple (NASDAQ:AAPL) held its first big event of 2022. The “Peek Performance” event is expected to be the first of multiple big events for Apple this year and it included a key product with the ability to move the needle for AAPL stock: The new third-generation iPhone SE, a midrange smartphone with 5G. In addition to an updated iPad Air and new iPhone 13 colors, the company took the wraps off its first all-new Mac model in years.
Apple also announced a new M1 Ultra processor that will shake other chipmakers.
The day after the event, AAPL stock was on the rise as the market absorbed everything the company announced. With that said, should you think about adding Apple shares to your growth portfolio at this point?
Considering everything that Apple announced at Peek Performance and given the fact that this was just the first of what is expected to be a series of special events this year, the price is right. Even after the current gains, Apple stock remains down 14% in 2022.
The iPhone SE 3 With 5G Is Potential Needle-Mover for AAPL Stock
One of the big stories for the Peek Performance event came early. The third generation iPhone SE 3 starts at $429, putting it fully in the mid-range sweet spot for smartphones. It gets an upgrade to the A15 Bionic processor — the same chip in the iPhone 13 — and 5G connectivity.
This could be a huge deal for Apple, as I detailed several weeks ago. An iPhone at that price, with that performance and with 5G has the potential to kick off a huge smartphone upgrade cycle. Not just the 300 million owners of older iPhones, but also the 1.4 billion owners of older midrange and entry-level Android smartphones that are in play. A decade and a half after the original was released, iPhone sales are still Apple’s largest revenue source and the primary driver of AAPL stock.
The iPhone SE 3 is one to watch.
The iPad Air Moves to Apple M1 Processor
Remember the M1 processor? Apple’s first custom PC chip was a groundbreaker and now it’s in the company’s iPad Air. Apple says the move from A-series mobile chips to the M1 makes this iPad up to two times faster than the best-selling Windows laptop in its price range.
Apple Unveils the Screaming Fast M1 Ultra Processor
Chipmakers like Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA) were watching Apple’s move to its own M1 processor with some concern. The new Apple chip seriously outperformed the competition while consuming much less power. The M1 Max and M1 Pro released last year upped the ante. But on Tuesday, Apple showed off a new processor called the M1 Ultra.
Apple claims it is the “world’s most powerful chip for a personal computer.” It has a 20-core CPU and a 64-core GPU. Apple claims it is 60% faster than a Mac Pro equipped with a 28-core Intel Xeon processor. The company also says its integrated graphics outperform the highest end video cards — this equates to an 80% speed boost compared to AMD’s (NASDAQ:AMD) Radeon Pro WX900X GPU. And the M1 Ultra delivers this power while using 100W less power than a high-end PC processor and up to 200W less power than a graphics card.
What should have chipmakers like Intel really worried is that the M1 Ultra is being used to power Apple’s new prosumer Mac. The new Mac Pro has yet to drop — and you can bet it’s going to be equipped with an even more powerful new chip.
The Mac Studio Is an All-New Mac
Apple also took the wrap off its first all-new Mac in years. The new Mac Studio looks something like two Mac mini’s stacked. A small cube of aluminum with a bunch of ports. Starting at $1,999, it’s an ultra-compact desktop PC that can be equipped with that M1 Ultra chip to drive five displays and play back 18 streams of 8K ProRes video — simultaneously.
The company also launched a new Studio Display to accompany the Mac Studio. It incorporates an A13 processor and a 12MP Ultra Wide camera with Center Stage for video calls (essentially an iPhone embedded in the 27-inch screen). It also has a six-speaker sound system with spatial audio.
Apple probably won’t sell enough of these particular models to have a material impact on AAPL stock, but the company is entering a new phase of challenging PC makers. With Mac sales accounting for roughly 9% of Apple revenue, any increase in market share is a good thing.
Bottom Line on AAPL Stock
Nothing is certain these days. A witches’ brew of inflation, rising interest rates, war, midterm elections and ongoing supply chain issues has made predicting anything in 2022 an art rather than a science. That being said, AAPL stock has put on a growth clinic for the past decade or more. It currently earns a “B” rating in Portfolio Grader and a consensus “buy” rating from the investment analysts surveyed by CNN Business.
2022 is already living up to expectations of being among Apple’s strongest years for new product releases. Picking up AAPL stock now — when it has been buffeted by the broader market selloff — makes a lot of sense. With the iPhone SE3, the new Mac Studio and the incredible M1 Ultra processor, Apple is set to make bigger waves than usual in the smartphone and PC markets. And there’s plenty more to come.
On the date of publication, Louis Navellier had a long position in AMD and NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
