Apple is set to unveil a foldable iPhone during its annual product launch, but investor sentiment appears muted. Michael Khouw, a strategist at Tidal Financial Group, noted that he does not expect significant movement in Apple's stock following the announcement, a sentiment echoed by Bank of America analyst Wamsi Mohan, who suggested it could be a 'sell the news' event.
Historical data shows that Apple shares have often declined after product launches, with 10 out of 24 instances since 2007 resulting in a drop the day after. Analysts are particularly focused on potential price hikes for the new device, with estimates suggesting an increase of $100 to maintain profit margins amid rising memory costs.
Nicolas Cote-Colisson from HSBC highlighted that the additional memory costs could justify this price increase. Furthermore, MoffettNathanson's analysis indicates that the foldable phone may need to be priced around $2,500 to enhance margins, which could impact consumer demand and overall sales.
The market will be closely watching for comments from Apple CEO John Ternus regarding the product's demand and its implications for the iPhone replacement cycle