Analysts Respond To Apple's Mid-Cycle iPhone Refresh

Even as the market and customers await a 10th anniversary iPhone announcement from Apple Inc. AAPL, the company announced a mid-cycle refresh of its product line Tuesday.

Among the new products announced:

• iPhone 7 and iPhone 7 Plus Red Special Edition in a vibrant red aluminum finish.
• An iPad refresh (9.7-inch), featuring a brighter 9.7-inch Retina display priced at $329.
• An iPhone SE with upgraded storage capabilities.
• Clips, an app that lets users create expressive videos on the iPhone and iPad.
• A new line-up of fresh and bright band colors for the Apple Watch.
• Swift Playgrounds, an iPad app designed to help students learn to code. It's available in five new languages, including Simplified Chinese, Japanese, French, German and Latin American Spanish.

The product announcements came after the Apple Store was taken offline, with the company teasing: "We've got something special in store for you."

Customers May Hold Out For The iPhone 8

The majority of customers seeking to upgrade their iPhones could wait out the mid-cycle refresh for the much-anticipated iPhone 8 release, said Nomura analyst Jeffrey Kvaal.

Deutsche Bank's Sherri Scribner expressed caution in a February note, citing slowing global smartphone sales, longer refresh cycles and expectations that new models will be priced high.

Going by expectations that the iPhone would see 5 percent half-on-half growth in the second half of calendar year 2017, a slowdown from the more than 20 percent year-over-year growth seen in previous years, Scribner said the iPhone 8 cycle will be a far cry from what many are calling a super cycle.

Related Links:

Apple's iPhone Upgrade Program Could Be Good News For 'iPhone X'

The 5 Senses Of Computing

Apple's 'iPhone X' To Cost $1,000?