Like many of its mega-cap tech peers, Apple (AAPL) shares have traded sideways to slightly down over the past month as investors have grappled over the prospect of more interest rate hikes from the Fed, which has been waging an ongoing battle against inflation. But on Tuesday, Apple stock can carve its own path with the company set to release new products, among them, the highly-anticipated iPhone 15.
The aptly named the "Wonderlust" event will be held live from Apple Park in Cupertino, California, starting later this afternoon at 1:00 PM ET. Apple will unveil the iPhone 15 as well as new Apple Watch models, among other new products. As Apple has done with previous product reveals and announcements, this event will be live-streamed on both the company's official website and YouTube channel for audiences across the globe to tune in.
The marquee product will certainly be the iPhone 15. Analysts and consumers broadly expect Apple to unveil four models which has been the company's pattern over the past several iterations. Assuming there is no deviation, the iPhone 15 will come in both a standard and larger Plus model in the entry tier. There will likely be a more advanced Pro and Pro Max tier, which are typically higher priced models. And if you believe the rumors, this time Apple may unveil a more powerful iPhone 15 Ultra model which is rumored to be a supercharged iPhone 15 Pro Max.
In the standard iPhone 15 and iPhone 15 Plus models, Apple is said to have reduced the bezel sizes to a much slimmer look. A 48-megapixel wide-angle camera upgrade will be part of the enhancements in addition to moving away from the lightning port to USB-C connector, which has become a hardware standard. Meanwhile, in the “Pro” models, which boast enhanced battery life and performance, some of the enhancements include the new A17 chipset, built on the 3-nanometer production process. Meanwhile, the pricier Pro Max is rumored to sport a 5-6x optical zoom lens which for photography enthusiasts is a standout feature.
The Apple Watch Series 9, as well as the Vision Pro, will also take some stage time. The latter, described as a "revolutionary spatial computer,” the Vision Pro employs a three-dimensional user interface that can be controlled by users' hand gestures, eye movements, or voice controls. Apple says these collective features help to "blend the physical world with digital content.”
Vision Pro also comes with a hefty price tag of $3,499. First unveiled at the WWDC, Jefferies analyst Andrew Uerkwitz called the device the "most technologically advanced device we've seen.” At a price point of $3,499, it better be. Bullish analyst estimates calls for Apple to generate Vision Pro revenue of $5.2 billion in the first year, assuming 1.5 million units sold. On Tuesday, we may get more details about pricing and the availability of the product.
All of this brings us to Apple stock and how its shares will respond from the event. Looking at historical patterns of product unveils, there tends to be a dip in the stock, sort of a “sell the news” event. But I’m expecting the opposite to occur this time. Wedbush analyst Dan Ives agrees. Citing Apple’s tactical pricing strategy, Ives expects Apple stock to rise 20%, saying the iPhone 15 will drive a 'mini super cycle.’ The analyst noted that some 25% of the 1.2 billion iPhone installed base hasn't upgraded in four years.
It remains to be seen what the stock ultimately does after the iPhone 15 launch, but with the shares still trading about 15% below my fair value estimated of $210 per share, Apple stock presents a strong value for the next 12 to 18 months.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In This Story
AAPLOther Topics
Technology
Richard Saintvilus
After having spent 20 years in the IT industry serving in various roles from system administration to network engineer, Richard Saintvilus became a finance writer, covering the investor's view on the premise that everyone deserves a level playing field. His background as an engineer with strong analytical skills helps him provide actionable insights to investors. Saintvilus is a Warren Buffett disciple who bases his investment decisions on the quality of a company's management, its growth prospects, return on equity and other metrics, including price-to-earnings ratios. He employs conservative strategies to increase capital, while keeping a watchful eye on macro-economic events to mitigate downside risk. Saintvilus' work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets. You can follow him on Twitter at @Richard_STv.
Read Richard's Bio