Apple (AAPL) might discontinue its low-cost iPhone SE handset next year in favor of a new entry-level iPhone, a top Apple analyst is speculating.
In a research note this week, KGI Securities analyst Ming-Chi Kuo said he expects that Apple's upcoming 11th-generation series of smartphones will come in three screen sizes. The flagship iPhone 8 handset will feature an organic light-emitting diode (OLED) display measuring 5.1 or 5.2 inches, he said. Apple also will sell two LCD-screen models that are the same sizes as the current iPhone 7 and iPhone 7 Plus, which have displays measuring 4.7 and 5.5 inches, respectively. Those new LCD handsets could be called the iPhone 7S and iPhone 7S Plus, he said.
The 4.7-inch iPhone 7S could become a new midrange or even low-end model for Apple, Kuo said, according to AppleInsider.
Apple's current low-end smartphone is its iPhone SE, which starts at $399. The next cheapest iPhone is the iPhone 6S, which starts at $549. Apple introduced the iPhone SE in March and is expected to skip its traditional annual hardware upgrade for the product.
IBD'S TAKE: Apple stock has a below-average IBD Composite Rating of 43, meaning it has been outperformed by 57% of stocks in key metrics over the past 12 months. Apple stock has formed a flat base with a possible buy point of 118.79.
The iPhone SE is Apple's bid to attract more price-sensitive consumers, especially in emerging markets like China.
The iPhone 8 is expected to be a major redesign, featuring a bezel-free, edge-to-edge OLED display. OLED screens reduce power consumption and extend battery life. They also have faster refresh rates, better contrast, sharper color and a wider viewing angle. Plus, they can be used in curved and wraparound displays.
The iPhone 8 also might feature wireless charging or superfast charging, analysts say. It also will get a speedier processor and improved camera. The iPhone 8 is due out in fall 2017.
Apple and third-party retailers were offering Black Friday deals on iPhones, iPads and other Apple products for post-Thanksgiving sales.
Apple on Friday was offering free Apple gift cards worth up to $150 to shoppers who buy select Apple products at full price. But better deals for Apple products could be found at retailers like Best Buy (BBY) and Target (TGT).
For instance, Target was selling the Apple Watch Series 1 smartwatch for $198 on Black Friday, a $71 discount off its regular price of $269. Meanwhile, Apple was giving customers a $25 Apple gift card if they bought a full-price Apple Watch.
Apple wasn't discounting its iPhone 7 series phones for Black Friday. But Target was giving customers a $250 Target gift card if they bought and activated an iPhone 7 handset. And Best Buy was offering gift cards of $100 to $250 depending on the model of iPhone 7 purchased.
Drexel Hamilton analyst Brian White on Friday reiterated his buy rating on Apple with a price target of 185. Apple stock rose 0.49% to 111.77 in the shortened session on the stock market today. Shares have been trading below their 50-day moving average all month, after hitting a nearly one-year high of 118.69 on Oct. 11.
"Apple remains one of the best-positioned tech companies to benefit from spending trends this holiday season with a well-received iPhone 7/7 Plus, a new Apple Watch and a new MacBook Pro with Touch Bar," White said in a research report.
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