What happened
Shares of Apple (AAPL 0.76%) rose on Wednesday after the tech giant announced a slate of new products. As of 3:10 p.m. ET, Apple's stock price was up more than 3%.
So what
Apple's "Peak Performance" virtual event was highlighted by the debut of a new budget-priced iPhone. The newest version of the iPhone SE will feature 5G capability, a faster processor, and an upgraded camera. It will be priced as low as $429, compared to other iPhone models that sell for between $699 and $1,099.
The iPhone SE. Image source: Apple.
Apple also revealed a new desktop computer, Mac Studio. The device will not contain a display, like the Mac Mini, but it will sport high-performance versions of Apple's M1 chips. The company also unveiled a high-resolution 27-inch display monitor that can be paired with the Mac Studio and other Apple devices.
Now what
Apple hopes its less expensive phones will entice more people to join its ecosystem. Once a person purchases an iPhone, they tend to remain a customer and buy other Apple devices over time. Each new iPhone user also represents another potential subscriber for Apple's high-margin services.
Better still, Apple's new computers are helping to highlight the impressive performance of its M1 processors. By designing its own chips, Apple can better integrate its hardware and software, thereby maximizing their combined capabilities. That's giving Apple an edge over its rivals, and it should help to drive the tech titan's sales and profits higher in the coming years.
