Apple Gearing Up to Launch Cheaper MacBook Air: KGI

The MacBook Air is getting an overhaul with Apple Inc. (AAPL) gearing up to launch a cheaper version later this year.

That’s according to KGI Securities, an investment firm that closely follows Apple and has been right about product launches in the past. Analyst Ming-Chi Kuo, in a new research report covered by website MacRumors, said that a MacBook Air with a cheaper price tag will launch in the second quarter of this year. This is along with a rumored 6.1-inch LCD-based iPhone and updated AirPods, its wireless headphones.  

While the iPhone and AirPod changes have been widely reported, it's the first time KGI Securities has mentioned the cheaper MacBook Air. If it does debut, KGI thinks Apple’s MacBook shipments will increase 10% to 15% this year, up from 15.5 million to 16 million units shipped in 2017.  (See also: 3 Reasons Why Apple's Shares Will Outperform.)

The analyst didn’t provide much in the way of details about what will be included in the MacBook Air other than a low price tag, but it may be overdue for the product category. As the website pointed out, the MacBook Air hasn’t seen much in terms of updates in the past three years. It celebrates its tenth birthday this year, and its biggest upgrade came last year when it got a faster Intel processor. The MacBook Air sells for $999. MacRumors noted the new MacBook Air will likely have an upgraded processor and graphics chip but could also see improvements in the display.  With the product expected to launch in the second quarter, it means anytime between April and June, leading MacRumors to speculate that it could come during Apple’s WWDC conference in June.

An updated MacBook Air isn’t the only product launch Wall Street and consumers are bracing for in 2018. Rumors have it that the Cupertino, California tech company will roll out three new iPhones by the end of 2018 as sales of the iPhone X fail to meet expectations. (See more: Apple Could Gain 20% With New iPhones: Trefis.) One will be its largest iPhone to date, another will be an updated version of the iPhone X and a third will be a lower-cost device that KGI Securities predict will be the LCD-based smartphone. According to a recent Bloomberg report, the largest model is being called the D33 in-house and will boast a 6.5 inch OLED screen, giving it the same edge-to-edge design of the iPhone X. The phone is geared toward the growing number of consumers that want larger screens and could be a play on the corporate market. The upgraded iPhone X is being called the D32 internally and will come with Apple’s next-generation artificial intelligence processor. It could come in a gold version, something not available with the current iPhone X. The lower cost iPhone is expected to include advanced technology including Face ID.