Apple iPhone 15: Will it Ruin Your Stock?
The Apple iPhone 15 left Wall Street investors with mixed feelings and the stock market warm to the touch.
- JPMorgan expressed concerns about the price increase for the Pro Max.
- Wedbush anticipates a significant upgrade cycle.
- Goldman Sachs predicts an increase in demand if Apple lays its marketing cards right.
On September 12th, at its annual fall event ‘Wonderlust’, Apple launched its latest iPhone 15 lineup. However, it left investors with mixed feelings and a lukewarm stock reaction.
Apple’s iPhone 15 lineup includes two basic models and two premium models. But it brought modest tech advancements over the iPhone 14. One of these improvements, for example, is the iPhone 15 Pro and Pro Max’s new A17 processor.
Despite these improvements, the starting prices for the basic models remained the same as last year, starting at $799 and $899. The iPhone 15 Pro starts at $999, and the Pro Max model is $100 more expensive than the iPhone 14 Pro Max, starting at $1,199.
For that reason, Wall Street’s response to Apple’s iPhone 15 announcements varied.
JPMorgan, for example, emphasized the focus on hardware differentiation, software features, and the integration of AR/VR capabilities. In a research note, Samik Chatterjee, a technology analyst at JPMorgan Chase, wrote that “while pricing was not effectively raised, the increase in the starting price for the Pro Max and the widening of the price differential to other models in the lineup could drive negative mix implications relative to prior years, which will be worth monitoring through early consumer demand indications.”
JPMorgan rates Apple as “Overweight” with a $230 price target. So, the company has a high conviction that Apple’s stock can outperform the market benchmark over the next six to 12 months.
Wedbush believes that the iPhone 15 launch sets the stage for a significant upgrade cycle. In another research note, Dan Ives, a Wedbush Securities analyst, affirmed that their “Asia supply chain checks this week give us increased confidence that iPhone units should be roughly 85 million units out of the gates and could be close to 90 million as eye-popping carrier promotions on the horizon will be a major catalyst for upgrades into holiday season.”
Wedbush rates Apple at “Outperform” and raised its price target to $240, representing a potential upside of 36%. In layperson terms, it expects Apple to generate a higher return on investment than other similar companies.
Goldman Sachs’ research note highlighted efforts to increase affordability through carrier promotions and bill credits, potentially covering the Apple iPhone 15’s purchase price. They wrote that “efforts to increase affordability, combined with the improvements in hardware and ongoing investments into the Apple ecosystem should support upgrade demand and continued growth in the Apple installed base.”
Goldman Sachs rates Apple as a “Buy” with a $216 price target, representing a potential upside of 23%. This goes to mean that Apple is likely to perform well and generate positive returns in the near to medium term.
As of the time of writing, Apple’s share value stands at $174.79 per share, on the NASDAQ stock exchange.
In the end, while the Apple iPhone 15 may not have wowed everyone, Apple’s broader strategy and financial fundamentals continue to position the company for long-term success.
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