Apple's (AAPL) iPhone Launch Event: What To Expect

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The moment Apple (AAPL) fans have been waiting for has finally arrived. The tech giant on Wednesday will kick off its iPhone launch event, which many are touting as the “biggest” iPhone release ever. And I don’t mean that figuratively.

Apple stock closed up 2.5% to $223.85 on Tuesday, reversing the recent declines the tech sector has suffered as tariff concerns continue to mount. And with Apple being fresh off its $1 trillion market cap achievement, the company has become a target for bears. Given this new status, this year’s September launch will be more scrutinized, particularly in terms of market-moving factors that can potentially keep Apple stock (or for that matter, the FAANGs) among the top stocks to close out the year.

The event will be held at the Steve Jobs Theater at the company's Apple Park campus in Cupertino, Calif. And investors will salivate at the long list of product refreshes that are expected to be on the menu. Reports suggest Apple could unveil as many as three new iPhone models. Among them, two will feature OLED screens and one will be a lower-cost model with an LCD display.

But as I said, this is expected to be Apple’s “biggest” iPhone release ever. And that’s because two of the models (the ones with the OLED screens) will sport sizes of 6.5-inch and 6.1-inch. According to rumors, the devices will carry names such as iPhone XS, iPhone X Plus, iPhone 9 and/or iPhone XS Max (any combination). These would be in addition to the current second-generation 5.8-inch model iPhones (LCD displays) the company currently has in its lineup.

Of course, these are just rumors and Apple has yet to officially announce details of the event, but if we are to follow the blueprint from last year, these predictions — many of which have been reported upon from leaks obtained by 9to5Mac — have been pretty spot on. However, we will have to wait until 1 p.m. Eastern on Wednesday to find out for certain.

If these predictions, particularly the number of new iPhone models, come true, it would demonstrate the level of market strength and demand the iPhone — now a decade old — still carries. After all, almost 60% Apple’s revenue comes from iPhone sales. Apple is also expected to release a fourth-generation Apple Watch. In addition to a long-rumored MacBook Air replacement, the company is expected to reveal the first-ever iPad with Face ID.

There are also other features such as wireless charging capability, 3D sensing and VR/AR technology that  Apple could unveil today that may entice current iPhone users to upgrade. The question is, with Apple stock still near all-time highs, will these new products and features be game-changing enough to can attract switchers or new customers — a major contributor to Apple’s growth — from Google’s (GOOG , GOOGL) Android.

From a valuation perspective, Apple stock, despite the nearly 40% rise year to date, is still arguably the cheapest on the market. With the stock trading at just 19 time fiscal 2018 estimates of $11.76 per share, which drops to single digits when adjusting out its $257B in cash, Apple should be owned ahead of Wednesday’s event, not traded.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks , Investing Ideas , Technology

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