Apple (NASDAQ:AAPL) is expected to unveil its next generation of iPhones and updated Apple Watches on September 12th.
Bernstein analysts discussed the five key investor questions and thoughts going into the event. They rate Apple with a Market Perform rating and a $195 per share price target.
1) Will Apple raise prices on the new iPhone Pros, and how will demand respond?
There are reports of a potential $100 or more increase on Pro models, which could boost the overall iPhone average selling price (ASP) by around $50.
“That said, we worry about mix downs from Pro models and demand elasticity, particularly given the macro backdrop,” the analysts wrote.
2) How strong will the iPhone 15 product cycle be?
Some caution is expressed compared to consensus expectations. Factors influencing this caution include the incremental functional improvements in iPhone 15, a weak global consumer market, Huawei's re-entry into the high-end China market, and the impact of Apple's 53-week comparison.
3) Will Apple have full availability at launch, and what can September quarter iPhone results indicate?
It's expected that there won't be any product delays, and September quarter results might not provide a reliable gauge of iPhone cycle strength.
4) What's the outlook for AAPL (Apple's stock) now?
Despite its historical pattern of outperforming in the lead-up to product launches, AAPL hasn't followed this trend recently.
“We see risk-reward on AAPL as neutral to modestly negative, given Apple's valuation, our belief that consensus estimates for 7% revenue growth may be optimistic (particularly given a 53-week compare), and the stock is entering into its seasonally weaker trading period.”
5) Will there be any updates on the Vision Pro?
It's unlikely that Apple will provide significant information on this topic during the upcoming event, according to Bernstein.