Should You Buy Apple Stock After Its Big "Glowtime" Event?
It was "glowtime" for Apple (NASDAQ: AAPL) on Monday. The consumer-tech giant unveiled its new lineup of iPhones, Apple Watches, and more.
Apple's share price slipped a little, despite the tremendous attention its event received. However, the announcements on Monday might set the stage for a new era for the company. Should you buy Apple stock after its big new-product reveal?
What's coming from Apple
Let's first look at all the new products coming from Apple. The big news of the "It's Glowtime" event was the announcement of the latest iPhone models. These new iPhones will be available for pre-order beginning Sept. 13, 2024 and in stores on Sept. 30.
Apple's iPhone 16 will sell for $799, with the iPhone 16 Plus priced at $899. The two smartphones have larger displays and bigger batteries than previous iPhones and will be available in five colors. They'll also be resistant to dust and water. It will have one key new feature -- a new Camera Control button that makes it easier to take photos.
The iPhone 16 Pro and iPhone 16 Pro Max are priced at $999 and $1,199, respectively. These higher-end models will be available in four titanium colors. Like the standard iPhone 16, they'll also include the new Camera Control button.
Importantly, all of the new iPhones will have much more powerful chips -- the A18 for iPhone 16 and iPhone 16 Plus, and the A18 Pro for iPhone 16 Pro and iPhone 16 Pro Max. These chips will support Apple Intelligence's generative AI functionality. The first genAI capabilities will be available in iOS 18, which should be released by October.
Apple also announced its new Apple Watch 10 and AirPods 4, AirPods Pro 2, and AirPods Max 2 at the "Glowtime" event. The new version of the Apple Watch features its largest display ever, along with a more powerful new processor and the capability to detect sleep apnea. The new AirPods will have improved sound, with the AirPods Pro 2 including an over-the-counter hearing aid.
Two views about Apple
Apple CEO Tim Cook said at the event this week: "The next generation of iPhone has been designed for Apple Intelligence from the ground up. It marks the beginning of an exciting new era." At least one Wall Street analyst agrees with Cook about the significance of the new products and genAI capabilities.
Wedbush Securities' Dan Ives said in an interview with CBS MoneyWatch on Monday:
It's a historic event that kicks off the consumer AI revolution, now coming to Apple. About 20% of the world will ultimately interact with AI through an Apple device, and it all starts today. Three hundred million iPhones haven't been upgraded in four years, so that creates what we believe is going to be the strongest iPhone unit year in Apple's history.
Another view about Apple's new iPhones and genAI functionality isn't so bullish, though. Needham analyst Laura Martin observed that Apple is moving slowly with its Apple Intelligence rollout, noting, "With lots of words like 'later this year' and 'early next year,' the core Apple message for iPhone 16 was: Next year will be better."
ZDNet's Jason Perlow had a similar take. He wrote, "While I agree that Apple Intelligence has long-term potential, I'm not convinced that its first iteration will deliver the game-changing usability that many anticipate."
Is Apple stock a buy?
At first blush, it might seem like Apple's new iPhones and genAI functionality won't move the needle much for the stock. However, I wouldn't make that bet.
Ives is correct that many iPhone users have older models. I suspect that Apple Intelligence could be just what they need to upgrade their smartphones. My hunch is that we'll see a strong fourth quarter for Apple with accelerating momentum as the company introduces additional genAI capabilities over time.
Is Apple stock a buy? I think so -- even if the glow from the company's "Glowtime" event isn't beginning as brightly as some investors would like.
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Keith Speights has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
