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How will Apple's stock respond to the unveiling of the new iPhone15?

Published 12/09/2023, 12:39
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Investing.com - A few hours ahead of one of the most anticipated events of the year, Apple's (NASDAQ:AAPL) 'Wonderlust', experts make their valuations. XTB analyst Darío García analyses how the stock could respond to the unveiling of the new iPhone15.

"How will Apple's stock respond to the unveiling of the new iPhone15 at the 'Wonderlust'? That's the question that those interested in the company are asking right now. Chances are that it will experience a dip, if past historical performance is anything to go by, but this latest product launch will further solidify Apple's dominant position in the market. Specifically, the company is positioned to take the lead with its controversial pricing strategy aimed at increasing revenues in a maturing iPhone market. Approximately 75% of the time the stock price falls after the unveiling of a new iPhone," explains Dario Garcia.

China's veto, trade war continues

China's recent directive ordering government agencies to ban iPhone use in the workplace has raised concerns about Apple's Chinese revenue vulnerability. "Beyond the short-term expectation of the Wonderlust event, investors are more concerned about the Chinese country's veto, as sales account for 19% of total revenue," warns Garcia.

"Added to the fact that virtually all of the company's manufacturing is done in whole or in part by outsourced partners located primarily in Asia, including mainland China, India, Japan, South Korea, Taiwan and Vietnam, according to its earnings reports," he adds.

Wonderlust

According to the XTB analyst, rumours about iPhone 15 pricing have varied, but the prevailing expectation is a price increase for the Pro models, with most sources predicting a $100 increase for both Pro versions and some suggesting a more substantial increase for the Pro Max.

"If you look at inflation, the price increase is not adjusted for inflation and in these terms, the more expensive (Pro) handsets are "cheaper" than the iPhone 14s were when they were introduced last year," he notes.

"Given the increasing international risks facing Apple, it may be prudent for investors to temporarily refrain from acquiring Apple shares, not only because past events did not support share price rises in the short term, but the macroeconomic backdrop and increasing risks could further push back the share price," Garcia concludes.

Translated from Spanish using DeepL.

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