Here’s how ASX investors can win from Apple’s new iPhone

Overnight in the United States, Apple, Inc. shares rallied to extend their five-day winning streak after investor optimism grew around sales of the new iPhone announced by the world’s most valuable company last Thursday.

Comments from US mobile giants T-Mobile and Sprint Corporation regarding the pent up demand for the Cupertino company’s latest iteration of the world’s most popular smartphone – the Apple iPhone 7 – sent Apple shares 3.4% higher, taking their total gains to 12% since last Thursday’s launch.

With analysts believing the iPhone 7 will have a bumper first weekend when it officially goes on sale today, investors would be wise to pay close attention to Australian companies that could benefit from the new release.

Here are three that I’ll be watching.

Telstra Corporation Ltd (ASX: TLS)

As Australia’s flagship telecommunications carrier, Telstra is the clear winner from Apple’s new release. With rumours circling that Telstra has already pre-sold more iPhone 7’s than it can deliver, it’s evident that the two year upgrade cycle that’s synonymous with Apple iPhones should see increased demand for Telstra’s mobile services.

Whilst this means peers Optus and Vodafone (owed by Hutchinson Telecommunications (Aus) Ltd (ASX: HTA)) are also likely to see an increase in sales, I believe Telstra’s premium branding is preferred by Apple’s up-market clientele, resulting in Telstra benefiting the most from the new release.

Harvey Norman Holdings Limited (ASX: HVN)

The second winner from Apple’s new iPhone would be the likes of Harvey Norman, JB Hi-Fi Limited (ASX: JBH) and Myer Holdings Ltd (ASX: MYR), all of which sell the iPhone outright.

Where customers are unwilling to pay the $90-odd that Telstra and alike ask for its SIM and phone plans, customers are likely to purchase the iPhone 7 outright and take SIM-only options with discount mobile providers Amaysim Australia Ltd (ASX: AYS) and TPG Telecom Ltd (ASX: TPM).

This should boost sales for all telco providers and mobile phone retailers, with Harvey Norman being my pick to benefit the most in this space.

Australia and New Zealand Banking Group (ASX: ANZ)

Finally, and somewhat outside of the box, my third stock to watch because of Apple’s iPhone release is ANZ Bank.

Presently, ANZ is the only Australian bank to offer Apple Pay on its credit cards through a contentious deal struck with Apple. Although the agreement is being challenged on competition concerns through the ACCC by big four peers Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp  (ASX: WBC), ANZ currently has an edge on the other big four to attract Apple users.

Accordingly, with the new iPhone 7 coming with Apple Pay as standard, ANZ could experience an uptick in credit cards as iPhone customers upgrade to the new technology.

Foolish takeaway

The iPhone has transformed lives and left the humble telephone a relic of time. Each year, the ‘Apple effect’ caused by new iPhones injects optimism into all sectors its coveted devices touch, with this year being no different.

Given the tech behemoth’s next best seller sprawls into diverse markets, investors are left with multiple options to benefit from the Apple phenomenon. In my mind, however, simple is best and that’s why my money is on Telstra as the biggest benefactor from Apple’s new release.

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Motley Fool contributor Rachit Dudhwala owns shares of Telstra Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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