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The iPhone maker will unveil its new lineup on Tuesday.
Apple stock has been a clear laggard among the Magnificent 7 stocks over the past couple of years, for a variety of reasons.
Sales of iPhone have slowed and the company, which manufactured most of its products in China, has been hurt by tariffs. Apple is also seen as lagging in the AI arms race.
But sentiment around Apple stock has improved this summer, leading up to the launch of the iPhone 17 on September 18. Over the past month, Apple stock has risen 18%, including a 4% rise last week. It is now down just 4% YTD.
“Awe-Dropping” Hype Around iPhone 17
Apple stock historically rises leading up to a new iPhone launch, as investors buy the hype and the rumor. But then, it is sometimes a case of “sell the news” when the phone actually comes out.
The hype machine will be at full tilt this week as Apple looks toward its “Awe Dropping” event on September 9, where it showcases the lineup of new products that will come out next week.
That includes a full line of the new iPhone 17 products, including the new iPhone Air, a thin phone that replaces the iPhone Plus series.
There will also be previews of new the new Apple Watches and iPods, among other products. You can watch it online at the Apple website, starting at 1 p.m. ET/10 a.m. Pacific on Tuesday.
There may also be updates on prices for the new iPhones. Prices were widely expected to rise based on rumors, likely due to tariffs, but recently, some analysts have suggested that increases could be limited to just the iPhone Pro model, according to 9to5 Mac, an Apple news website. Investors will be watching this closely.
Is Apple Stock a Buy Ahead of Launch?
Apple has had some momentum coming into this launch. In its fiscal third quarter it easily beat earnings and revenue estimates, with revenue up 10% and earnings rising 12%. It reversed a trend where Apple had been seeing negative or very slow year-over-year growth.
Apple also made news recently when CEO Tim Cook reaffirmed a commitment to invest $600 billion in U.S. manufacturing.
It appears that the good news has all been priced in before the launch, so I wouldn’t expect a big jump. Plus, the strong Q3 was due to people buying up iPhones before the tariffs kicked in, so sales could settle back down in Q4 and earnings could be challenged by tariffs.
Certainly, Apple is a hold. But is this a buying opportunity? That may have passed for now, but tune into the September 9 launch for details on the new products, prices, and reactions — it could inform your decision. Note the stock is trading at 36 times earnings, so it is not cheap despite the weak YTD performance.