As Apple Inc. prepares to unveil its latest iPhone, many investors are eagerly anticipating a surge in the company's stock. However, history suggests that immediate reactions may be limited.
In recent years, Apple product events have yielded few surprises. Incremental upgrades to the iPhone and frequent leaks have resulted in minimal stock movement, with Apple shares falling an average of 0.2% on previous launch days, according to Dow Jones Market Data.
This subdued reaction may be due to the market needing time to fully digest Apple's announcements and how they will be received. Interestingly, from the time of an iPhone's unveiling to its release day, Apple shares have historically risen an average of 2.8%.
Gone are the days when analysts would rely on in-person store observations to gauge demand for new iPhones. With online ordering now the norm, analysts instead study delivery wait times for insights.
Surprisingly, release day itself has not proven to be a significant catalyst for Apple shares. On average, the stock has actually fallen by 0.4% on these days, as reported by Dow Jones Market Data.
However, the months following an iPhone release tell a different story. Over a three-month period, Apple shares have historically gained about 5%, with an impressive 12% increase over six months.
With this in mind, investors and enthusiasts alike can expect both short-term fluctuations and long-term growth as the latest iPhone graces the market.
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Apple is set to unveil its highly anticipated iPhone 15 family of devices at an event on Tuesday. While there may not be any groundbreaking new features, two key factors have caught the attention of experts - the price and timing of the iPhone 15.
Pricing Potential
Many analysts believe that Apple may increase the price of its Pro models by $100 or $200, breaking the trend of consistent pricing in recent years. While this could improve profit margins and encourage users to opt for higher-priced configurations, there is also a risk of alienating customers who are already burdened by economic pressures.
Timing Concerns
Speculation is circling about possible production delays for the iPhone 15 Pro Max. Investors might be disappointed if Apple has to postpone the release of their highest-end model. However, some analysts have expressed confidence in Apple's ability to maintain demand in the face of supply chain disruptions.
If you're eagerly awaiting the latest iPhone, be prepared for the possibility of a longer wait than anticipated.
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