The company introduced a new iPad Pro, a new version of its larger model. Both had upgraded displays, a 50% increase in screen brightness and a feature called ProMotion that provided more performance when needed and smoother interactivity when using the pencil stylus.
Apple also announced a wide range of new improvements which would come with the new iOS updated.
Some of those features included Siri getting new features such as the ability to speak with both male and female voices and with more human-like speech, he said.
Siri would also have the ability to translate sentences into different languages and provide news stories and calendar appointment suggestions based on new machine learning technology.
Users would be able to make peer-to-peer payments through iMessage. The money would be deposited into the recipient’s Apple Pay account.
A redesigned App Store would highlight the latest apps and games. The company would add a "today" tab where it would feature selected apps and information about the app and the developers.
It would have a similar page for games featuring new releases, game play videos, stats on popular games and information about new games.
New mapping features included maps of malls and airports, information on speed limits and assistance on which lane you should be in during navigation.
It also announced a new optional "do not disturb while driving" mode that figured out when you were driving and turned off notifications, he said.
"We have an overweight/buy recommendation on Apple and, along with the upcoming release of the iPhone 8 in September, we believe there are a number of other catalysts that could help drive the share price over the short to medium-term."
One of United States President Donald Trump’s policies was corporate tax reforms, Mr Timms said.
Given Apple’s large cash position and above-average tax rate, the company was well positioned to benefit from both a repatriation tax holiday and a lower corporate tax rate. A reduction in the US tax rate was estimated to provide a 6% earnings benefit while a cash repatriation holiday and share buyback would boost earnings by 10%.
"The opportunity to bring its large offshore cash position to the US could also add significant merger and acquisitions opportunities. Netflix is rumoured to be on Apple’s list."
The company’s service offerings were now driving more than 150 million paid customer subscriptions in mobile commerce, mobile gaming and mobile entertainment.
Apple’s goal was to double the size of that business in the next four years. Given it was Apple’s second most profitable segment and was achieving high double-digit growth rates, the goal was achievable.
Apple had huge market growth potential in emerging markets. Industry checks indicated in countries such as India, China, Russia and Vietnam that smartphones selling below $US400 ($NZ555) made up 80% of the market.
"This is the perfect market for the company’s new iPhone SE and for its older iPhone models which have received price cuts as new models have been released."
Apple’s share price had surged 33.4% in the year to date, sending its 2018 financial year price to earnings (PE) ratio to 14.8 times.
However, Apple did not look overly expensive, given it was trading at a 12.1% discount to the S&P500 but offering a more attractive earnings growth outlook, Mr Timms said.
At a glance
• New releases catalyst for growth
• US tax changes will benefit Apple
• Offshore cash could fund mergers and acquisitions
• Share price trading at discount to S&P500
