It’s that time of year again: the Apple (NASDAQ:AAPL) iPhone event. And well, there were not many surprises. Yet we got the run-down on the main devices that will be launched. Although, there were no announcements for Macs, iPads or AirPods. Rather, the focus was on iPhones and the Apple Watch. In the end, there was nothing that should change your opinion about Apple stock.
The Apple Watch
Let’s take a look:
Apple Watch: After an initial slow start, the device has been able to get momentum. It has also become a key in pushing up the value of Apple stock. Keep in mind that the Apple Watch commands the highest marketshare on a worldwide basis.
As for the latest version, which is the Series 4, it has a screen that is roughly a third larger than existing models but is also thinner and has rounded edges. The device also has some standout health features, such as a full EKG.
The Apple Watch can even detect if you have taken a fall (which will call emergency assistance) and atrial fibrillation. This data is stored in encrypted form and can be sent to your physician.
The new Apple Watch will have a price range of $399 to $499 and pre-orders will begin on Friday, with deliveries starting on Sept. 21.
Note that the Apple Watch news was far from good news for rival Fitbit (NYSE:FIT). In today’s trading, the shares fell by nearly 7%.
The iPhone Still Drives Apple
Of course, when it comes to Apple, this is the main driver. And as expected, the company has three new models.
For those who are budget-conscious, there is the iPhone XR, which starts at $749. It has an edge-to-edge LCD display at 6.1 inches and comes in aluminum. The device is also faster than the iPhone 8 Plus – with an A12 Bionic chip – and the battery power is an hour and half longer. There are also some improvements to the camera, which has a single lens.
You’ll be able to preorder the XR on Oct19 and it will begin shipping a week later.
Now if you are willing to splurge some more, then Apple has the iPhone Xs, which starts at $999, and the iPhone XS Max, which starts at $1,099.
The XS comes with a 5.8-inch OLED screen, which is water resistant. Besides having a more powerful processor (the A12 Bionic chip), the device has storage up to a hefty 512 GB. The dual-camera is also much more immersive. It is 12-megapixel wide and there is a 12-megapixel telephoto lens sensor.
And if you want a 6.5-inch screen, then you will go with the iPhone XS Max.
For both phones, you can preorder them Friday and the delivery will start on September 21st.
Bottom Line on Apple Stock
The new devices from Apple are certainly top-of-the-line, especially the health features of the Watch. But for the most part, it looks like the news has already been baked into the Apple stock price. In today’s trading, Apple stock is up 2%.
What’s more, the valuation is far from cheap. Consider that the forward price-to-earnings ratio is 20X, which is at levels not seen in ten years. By comparison, Facebook (NASDAQ:FB) is at 19X and Sony (NYSE:SNE) is at 14X.
So while it would be a good time to get a cool iPhone or Apple Watch, it’s probably best to wait on Apple stock.
Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.