Although Apple (NASDAQ:AAPL) won't be releasing opening weekend shipment numbers for the iPhone 7 and iPhone 7 Plus this year, a couple of data points have emerged suggesting that the iDevice maker's new iPhones could be poised to do quite well.
For example, T-Mobile (NASDAQ:TMUS) put out a statement saying that the iPhone 7 and iPhone 7 Plus "are a home run at T-Mobile."
"Pre-orders for Apple's latest have already shattered sales records in the first four days -- up more than 4x over the smash-hit iPhone 6," the statement continued. "And Friday set a single day sales record for any smartphone ever in T-Mobile US history."
It's not just T-Mobile that's bringing the good news for these new iPhones. Another major carrier, Sprint (NYSE:S), put out a statement claiming that "pre-orders of iPhone 7 and iPhone 7 Plus at Sprint are up more than 375 percent in the first three days over last year."
It appears that Apple is on to something with these new iPhones. And, to cut to the chase, it would seem that the apparent success of these new iPhones could be a really good reason to buy Apple stock now. Here's why.
The iPhone 7 cycle could be quite good
In the near term, Apple may be set to have a good product cycle with the iPhone 7 and iPhone 7 Plus. Indeed, it wouldn't come as a surprise to me at all if the company were to return to year-over-year growth with these devices -- they're simply excellent products that should both appeal to current iPhone users and could potentially drive some significant share gains at the high end of the market, to boot.
If these new iPhones can alleviate the concern among investors about Apple's ability to grow iPhone-related revenue and unit shipments, then that alone could drive multiple expansion for the stock. Combined with potential earnings growth, the stock could be poised for significant upside.
The iPhone (8) off in the distance
The iPhone 7 is an incredible technical achievement and a truly fine product. However, many seem to view it as an incremental update to the prior-generation iPhone 6s/6s Plus rather than a fundamental game-changer.
If the iPhone 7 is enough to rekindle growth, then the implication is that the follow-on to that device -- which may be called the iPhone 7s but could very well debut as the iPhone 8, given the extent of the changes that Apple is rumored to be introducing -- could actually accelerate that growth rate in the next product cycle.
Indeed, if one believes the flurry of rumors that have been making the rounds, the iPhone 8 is likely to bring -- in addition to the typical internal upgrades that the iDevice maker delivers each year -- a massive overhaul in form factor, as well as a move to a curved OLED display (which should both enhance aesthetics and lead to even better image quality).
This would be such a major leap forward from any previous iPhone that it could not only catalyze significant upgrade activity within the iPhone installed base, but it could serve to further accelerate market share gains at the high end of the smartphone market.
The prospects for this device in the marketplace, particularly in light of the initial response to the iPhone 7 and iPhone 7 Plus, seem almost boundless at this point.
With a couple of great years potentially ahead of Apple in terms of revenue and profit growth, it may finally be time to pick up some Apple stock if you've been sitting on the sidelines.