Apple's Stock or New iPhone: Which Is a Wiser Choice?

In One Chart joined discussion · Sep 6, 2023 18:08

$Apple (AAPL.US)$ will announce a product launch event on September 12th at 10:00 AM Pacific Time. The event will likely feature the highly anticipated release of iPhone 15.

According to Barron's, Apple is expected to raise the prices of its Pro models from the levels of the iPhone 14.

However, some analysts predict that the new model may be considered a bargain, as it is expected to cost just $70 more than the original 2007 iPhone when adjusted for inflation. This slight increase in price could give a boost to sales, which have been slowed down by shoppers who are hesitant to spend due to rising inflation.

Will Apple's fortunes turn around soon? Investors want the answer to be a resounding yes, but history shouts a big no.

For the last three Septembers, Apple's shares have decreased by at least 6%. In fact, since its initial public offering nearly 43 years ago, the company's stock has consistently dropped in every September, averaging a 4.2% decline. Over Apple's tenure on Wall Street, gains were only observed in September 14 times. The stock remained unchanged once, while it fell 27 times.

Despite the historical trend, Wall Street remains bullish on Apple's prospects. According to FactSet, nearly three dozen analysts have given the stock an average Buy rating, with a consensus target price that suggests potential gains of 7.5%.

Here are analysts' perspectives on Apple's new products.