Following a disappointing fiscal third-quarter earnings report on August 3, Apple (NASDAQ:AAPL) shares have experienced a decline of over 7%, reaching a 2-1/2 month low this Wednesday. As anticipation builds for Apple’s planned release of the new iPhone 15 next month, several analysts are speculating that the current moment might present an opportune time to consider investing in the company’s stock.
Citigroup is optimistic about the potential for Apple’s shares to rise in the lead-up to the iPhone 15 debut. They highlight that over the past seven years, Apple has achieved an average gain of 8% between its fiscal third-quarter earnings announcement and the introduction of a new iPhone model. Deepwater Asset Management believes that the enhancements introduced in the new iPhone version will generate investor enthusiasm and provide a boost to the stock. In their words, “From a broader perspective, we anticipate that people will find the phone’s various improvements quite exciting.”
According to data from Bloomberg, the majority of analysts hold a positive outlook on Apple’s future prospects, with an average price target of approximately $203 per share. This projection implies a potential increase of nearly 15% for the company’s stock. Nevertheless, amid the possibility of millions of existing Apple customers being eligible for upgrades, certain major economies are displaying signs of deceleration. Recent economic indicators from China, a significant iPhone market, indicate weaker-than-anticipated consumer spending, which could pose challenges for the forthcoming iPhone sales.
Certain analysts are hopeful that the innovative features incorporated into the iPhone 15 will stimulate interest among consumers, spurring the adoption of the new model. The premium Pro variant is anticipated to showcase design improvements such as a slimmer border, a titanium frame, an enhanced camera, and a swifter processor. Mahoney Asset Management contends that a well-received iPhone launch could positively impact Apple’s sales in the upcoming quarters, particularly given the substantial number of customers who are presently utilizing older iPhone models.
However, there are analysts who approach the high expectations for Apple’s new iPhone model with caution. KeyBanc Capital Markets remarked this week that the consensus outlook might be overly optimistic concerning the prospects for the next quarter. Likewise, DA Davidson expresses skepticism regarding the potential for the new iPhone release to trigger a significant surge in Apple’s stock. Citing the 2.4% decline in iPhone revenue observed in the most recent quarter, they suggest that there is added pressure on the success of the iPhone 15 launch. Nevertheless, they caution that investors might need to moderate their expectations in this regard.
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Author Faith Yakubu 
