Published on 9 May 2024 on Zacks via Yahoo Finance
Apple ETFs in Focus Post New iPad Launch
Apple AAPL, during a virtual launch event, unveiled a new lineup of iPads for the first time in two years. The tech giant launched two new versions of its top-end iPad Pro models and two new versions of its mid-tier iPad Air. It also debuted the Apple Pencil Pro stylus and an updated Magic Keyboard case for the iPad Pro line. The new models are expected to hit stores next week and are expected to drive global tablet market share.That said, ETFs having the largest allocation to the tech titan are in focus. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Invesco QQQ QQQ have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Insights Into the New Models
The two new iPad Pro models are the thinnest products ever (5.1 mm) and come with an M4 processor, Ultra Retina XDR display and AI. This is the “biggest update ever” to iPad Pro. The M4 chipset has been introduced for the first time by Apple. The 11-inch model costs $999, while the 13-inch model is priced at $1,299.The company said the iPad Pro could be a useful tool for professional video producers and announced a new app called Final Cut Camera that can control multiple iPhone cameras. The iPad Pro comes with a 12-megapixel rear camera that can record 4K video, according to Apple.The iPad Pro also offers support for a bunch of accessories, including the new Apple Pencil Pro, priced at $129 and Magic Keyboard, which is available at $299 for the 11-inch model and at $329 for the 13-inch model.Meanwhile, the new models of iPad Air, the mid-range tablet, are available in two sizes. The 11-inch iPad Air starts at $599 for 128GB of storage, while the 13-inch version starts at $799. Apple has moved the front-facing camera to the longer side of the device — landscape mode — to improve videoconferencing, matching the more expensive iPad Pro models. The iPad Air comes in a variety of colors, including blue, purple and gold.All the new models are 50% faster than the previous generation and 10 times faster than the original iPad Pro or iPad Pro models. The new devices will help to bolster Apple‘s struggling tablet division and provide stiff competition to Samsung and OnePlus. The tech giant’s iPad sales declined 17% to $5.6 billion in second-quarter fiscal 2024 (read: ETFs to Buy on Apple's Q2 Earnings Beat, Largest-Ever Buyback).