Analysts Predict Apple Watch Ultra 3 Could Gain HSA Approval Amidst Strong Demand for New iPhones

Analyzing Apple’s Latest Keynote: Insights and Projections

With Apple’s recent keynote event now concluded, analysts are diving deep into the new iPhone lineup to assess its potential market impact. Their assessments are revealing significant insights about consumer demand and product capabilities.

Massive Upgrade Opportunity for iPhone Users

Wedbush analyst Dan Ives highlights a substantial pent-up interest in the upcoming iPhone 17 lineup. He notes that approximately 315 million iPhone users, out of 1.5 billion total global users, have not upgraded their devices in over four years. This indicates a sizable opportunity for Apple in the near future.

“We estimate roughly 315 million iPhone users of 1.5 billion users worldwide have not upgraded their phones in over 4 years speaking to an upgrade opportunity on the horizon…”

With this substantial user base ready to refresh their devices, Ives is optimistic about a potential supercycle for Apple, anticipating that it may unfold within the next 12 to 18 months, especially with a new revamp of Apple Intelligence expected in spring 2026.

Apple Watch’s Potential HSA Approval

In related news, Evercore ISI analyst Amit Daryanani has mentioned that the latest Apple Watch could gain HSA-approved status thanks to its innovative blood pressure monitoring feature. This designation would allow consumers to purchase the device using pre-tax funds from Health Savings Accounts (HSA).

“Apple Watch – The blood pressure monitoring is notable, could enable this to be considered an HSA approved device and unlock incremental purchases.”

It’s important to clarify that while the Apple Watch Ultra 3 can detect blood pressure trends, it may not match the accuracy of professional medical devices.

Pricing Forecasts and Production Costs

Lastly, UBS analyst David Vogt has conducted an analysis regarding Apple’s average selling price (ASP).His findings suggest that Apple’s ASP could see an increase of about 3.5%, though this might be tempered by rising production costs linked to the removal of the 128GB storage option in the base, Air, and Pro models of the iPhone 17.

“Assuming the same production and sell-through mix as last year, on a blended basis with the Base and Pro Max accounting for roughly 2/3 of iPhone sales, a back-of-the-envelope calculation suggests pricing could be up roughly 3.5% YoY. As an offset, dropping the 128G storage configuration in 3 models (Base, Air, and Pro) could increase the blended iPhone BOM by around 1.5% – 2.0%, slightly offsetting the uplift from price.”

As we analyze these insights, it becomes evident that Apple’s strategies are positioned to tap into significant consumer demand while navigating complex production challenges. Moreover, the integration of health monitoring features in wearables positions Apple strongly in a competitive market.

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