Gene Munster On Apple's 5G Cycle: It's Clear 'We Depend On These Devices'

Tuesday was a busy day for two of the largest tech companies in the world as Apple Inc. AAPL introduced its new iPhone lineup and Amazon.com, Inc. AMZN hosted its annual Prime Day sales event. Who better to break down each company's performance than notable tech expert Gene Munster.

iPhone Tailwind: The 5G upgrade cycle remains in the very early phases but Apple's new device should be considered a multi-year tailwind, the Loup Ventures co-founder said on CNBC. Specifically, there are 90 million iPhone users that are due to upgrade their phones and would do so over the next few years.

Munster said this should contribute to Apple showing a 15% revenue growth in 2021 after flattish growth in 2020. Despite a pandemic and economic uncertainty, people will continue buying high-end devices like the iPhone because it's clear "we depend on these devices."

"No one in the world makes a better device than Apple," he said.

Related Link: Apple 'Hi Speed' iPhone Event: Live Blog

Overlooked Apple Launch: Investors may be overlooking a "subtle detail" of Apple's product event and that is the launch of the $100 HomePod mini smart speaker, Munster said. The ability for the HomePod to integrate and work with other Apple devices is "remarkable" and something rivals can't duplicate.

This begs the question of why does Apple's stock merely trade in-line with other tech firms and not at a premium. The answer is it isn't a fair multiple and even at $200 a share Apple's stock is trading at a "reasonable multiple."