Apple’s (NASDAQ:AAPL) stock is facing potential turbulence after a recent correction in August. A 3.5% single-day drop on Wednesday, triggered by the Chinese government’s ban on iPhones for government workers, along with ongoing weakness, has dimmed hopes for an immediate resurgence.
However, optimism still lingers for Apple’s upcoming iPhone showcase, scheduled for next Tuesday, September 12, during the “Wonderlust” event. This event is expected to unveil several new hardware offerings. While consumer spending has faced challenges recently due to inflation, Apple’s unique appeal to its fanbase sets it apart from the broader market.
Despite economic uncertainties, Apple’s products are often considered essential by its loyal customers. While they may be discretionary items, impressive Apple hardware is seen as a staple by its dedicated user base. Even in less favorable economic conditions, consumers may explore financing and trade-in options to upgrade their devices. One key factor impacting Apple’s recent sales was the absence of exciting new releases, making a product refresh imperative.
Apple’s forthcoming event, featuring the iPhone 15, could rejuvenate sales. Although the next iPhone iteration may not represent a groundbreaking technological leap, its value proposition might entice users to upgrade, especially in a climate of inflation and economic challenges where great deals are sought after.
Apple wields substantial pricing power, and the iPhone 15 is anticipated to come with a “major price hike.” Analysts suggest that the iPhone 15 Pro model could start at $1,099. This price increase is expected to be justified, in part, by the inclusion of a new periscope lens enabling optical zoom of 5-6x, potentially surpassing competitors in camera quality. Apple’s prowess in perfecting the software behind hardware enhancements also adds to its appeal.
The hardware leap from the iPhone 14 Pro to the iPhone 15 Pro, while not the most significant, promises substantial improvements. The iPhone 15 Pro’s latest chip, likely the A17, is set to advance on the 3nm process and feature a six-core GPU. This technological edge could overshadow competitors like the Huawei Mate 60 Pro with its 7nm processor.
Looking beyond the September event, Apple may revamp the iPad and Apple Watch. The iPad, in particular, could receive a major upgrade, potentially reinvigorating its sales performance. Additionally, rumors suggest a new design for the Apple Watch X, marking its 10th anniversary, indicating substantial innovations.
In conclusion, Apple’s events have not always ignited investor enthusiasm, but the upcoming product cycle holds promise. While the iPhone 15 line may come at a higher price point, Apple aims to justify it with features like the new camera and the A17 chip. Given the potential of Apple’s latest hardware capabilities, an elevated price tag may be warranted, not only for the iPhone 15 Pro but also for Apple’s stock.
Featured Image: Unsplash @ Arnel Hasanovic
Author Faith Yakubu 
