For fans of Apple (NASDAQ:AAPL), the wait is finally over. The Silicon Valley innovator has announced that it will be broadcasting its “Peak Performance” event on March 8. After weeks of rumors, the tech sector will see what Apple is planning on rolling out in the year ahead. According to some, this will mean updates on the new iPhone SE and iPad Air, among other products. AAPL stock is up slightly in aftermarket trading today on anticipation for the event.
Following its decline in February as negative momentum pushed down the tech sector, AAPL stock has rebounded nicely. If the stock continues to move upward, it will be back in the green for the month before the March 8 catalyst.
While the event in general promises to generate momentum for AAPL stock, there is a specific reason why. In particular, fans and investors are expecting to see the newest low-cost iPhone. The Verge reports the device is rumored to include 5G and “a faster A15 CPU chip” as well as higher-quality cameras.
What’s Happening with AAPL Stock
Ever since its iconic debut in 2007, the iPhone has been proving critics wrong. The device has gone from being a luxury item to a common device. Of course, a frequent complaint about Apple has always been its products are too expensive. However, the upcoming release could be a significant step forward in this regard. Mark Gurman of Bloomberg has suggested that the release of the new low-cost iPhone could position Apple to lower its current SE model price to $199.
Apple is already the company that gave the world the smartphone. Some of its competitors, such as Samsung and Motorola (NYSE:MSI) have stayed competitive largely by offering more affordable alternatives. For Apple to lower its iPhone prices by this much could mean a difficult road ahead for these competitors. It would serve to boost sales for Apple considerably, though, sending AAPL stock up even further.
The smartphone market is already shifting in that direction. Earlier this year, tech review site Tom’s Guide ranked the iPhone SE second on a list of top smartphones under $400, ahead of models from Motorola, Samsung and others. It appears that the affordable smartphone market is truly the final frontier for Apple to conquer — and many signs indicate we are about to see the company do exactly that.
What It Means
Competing with a company like Apple wasn’t easy when the iPhone was too costly. After all, the company’s consumer base consists of a large, loyal and highly motivated group. Now that we are about to see the iPhone reach a new level of affordability, though, competitors may need to accept defeat.
Additionally, investors have plenty more reason to bet on AAPL stock, iPhone or not. As InvestorPlace contributor Thomas Niel notes, Apple’s exposure to the metaverse will help boost shares in 2022. Louis Navellier also notes that Warren Buffett has loyally maintained his position in AAPL, indicating the company likely still has growth potential.
Investors should watch the “Peak Performance” event closely. However, AAPL stock should still rise with or without low-cost iPhones.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.