Apple stock has been seeking to recover from an early August slump, and the new iPhone release hype could help.
AAPL – Daily Chart
The price of AAPL stock has rallied toward the 2021 high of $182.13, which will be an essential level in the weeks ahead.
The new iPhone 15 is set to be released, and rumours are it will cost more than the 14. Apple might ask between $1,099 to $1,199 in the U.S. for the iPhone 15 Pro, compared to $999 for the iPhone 14 Pro. With the iPhone 15 Pro Max, the asking price is set to be $1,199 or $1,299, as opposed to $1,099 for the current model.
The company will likely squeeze the last of the inflation pressures out of the economy to counter a sales slowdown this year.
The iPhone 15 is said to be launching in September and may have a much longer battery life. According to a new report published on 21 August, the handsets may be charged at up to 35W speeds, meaning charging could be up to 100 per cent faster. The iPhone 14 Pro is limited to 27W, while the standard iPhone 14 is capped at 20W.
With the Labor weekend on 4 September, speculation is for an announcement around 14 September and a release a week later.
Morgan Stanley has said that Apple is the “most under-owned” large cap-tech stock that it tracks. Analysts, led by Erik Woodring, said:
“We believe this is a reflection of the significant weighting Apple has in market indices, especially after outperforming the market year-to-date by 30 points at the peak in late July, as well as investor concerns about the divergence between valuation and near-term fundamentals (guidance for F4Q suggests revenue will decline year-over-year for the 4th consecutive quarter)”.
Additionally, they noted that while demand for the Mac and iPad are still “challenged,” the firm said growth in the September quarter is likely to be in the “right places,” with year-over-year growth in the iPhone and an acceleration in Services.
“As a result, we see 5% upside to Street EPS estimates in fiscal 2024, and expect the stock to outperform as growth accelerates, margins expand year-over-year, and consensus estimates move higher,” the analysts added.
