Apple Inc (NASDAQ:AAPL, ETR:APC) shares could move higher if the iPhone maker demonstrates compelling new features or raises device prices at its upcoming ‘It’s Glowtime’ event on Monday, September 9.
At the event, Apple is expected to debut the iPhone 16 line-up. Analysts expect four models: Pro, Pro Max, Plus and the base model.
The Pro and Pro Max are expected to include the A18 Bionic chip based on 3nm lithography, screen size updates, a 48-megapixel Ultra-Wide camera, and design changes, such as improved thermal management and new colors.
“We expect non-Pro models to run the A17 Bionic processor, higher 8GB RAM to support AI capabilities. The phones may have a new 'capture' button to help in focusing, zooming and capturing photos,” analysts wrote in a note to clients.
Analysts also expect Apple will showcase some of the features of Apple Intelligence. They expect the rollout of Apple Intelligence to be staggered starting in the US.
They also see the event focusing on AI integration and enhancements to Siri, including better integration with Apps and an updated interface.
The company could also demonstrate its ChatGPT integration for general queries or announce the Apple Watch Series 10 and Ultra 3 models with a faster processor and updated AirPods.
After Apple’s events investors usually “sell the news,” the bank’s analysts noted.
“Past events have seen the stock pull back after the event, only to recover 30-60 days post-event. If Apple surprises with a compelling demo of Apple Intelligence/third party integrations or with any price increases, we could see the stock fare better than post past events,” they wrote.
The analysts see the iPhone 16 launch as the start of a new software-driven upgrade cycle and, as such, repeated their ‘Buy’ rating on Apple.
They awarded it a price target of $256, implying an upside of more than 16% from Apple’s share price on Thursday afternoon of $222.