Apple (NASDAQ:AAPL) stock suffered a bit of a setback on Monday, declining about 2% before paring back some losses in the early afternoon session. Rumors indicate that the company will release its latest-generation iPhone 14 on Sept. 7, somewhat earlier than last year’s launch. Therefore, some analysts suggest that Apple may be pulling in sales to hit fiscal fourth-quarter results.
Per Bloomberg, Apple will unveil its newest iPhone via an online streamed event. Last year, the company introduced the iPhone 13 on Sept. 14, according to MacRumors.com. Back then, consumers were delighted by a faster A15 Bionic processor, improved cameras and a smaller front-facing sensor notch. It also delivered 5G cellular service.
In a sign of the times, though, WedBush analyst Dan Ives believes that the iPhone 14 price will likely cost consumers an extra $100 more than its predecessor. Further, CBS News mentioned that Ming-Chi Kuo, a tech analyst for TF International Securities in Hong Kong, predicts that Apple’s new smartphone will be 15% higher priced than the iPhone 13.
According to the rumor mill, the most prominent change to the iPhone 14 will center on its camera system. Allegedly, the phone will have better video-recording capabilities and longer battery life.
AAPL Stock Highly Dependent on the iPhone
To be clear, no one knows for certain when the iPhone 14 will go on sale. Per CNET, corporate leaders told some Apple employees to expect a release on Sept. 16. Also, Apple did not respond to CBS News’ request for comment regarding its latest smartphone’s pricing.
The earlier speculated launch date for the newest iPhone sparked speculation regarding the reasons why. According to Seeking Alpha contributor Bill Maurer, Apple could be trying to pull sales forward into fiscal Q4.
It’s an interesting take. Late last month, the Wall Street Journal reported that Apple suffered an 11% decline in profit for the June quarter. However, “iPhone sales continued to grow, remaining resilient despite economic challenges.”
Nevertheless, supply constraints and shutdowns in China imposed myriad challenges for Apple and the consumer tech industry. Also, overall iPhone sales, while robust, may require some additional catalysts to bolster AAPL stock. With inflationary pressures setting in, it will be much more difficult for any company to charge premiums on product upgrades.
According to data from Statista.com, iPhone sales make up approximately 52% of Apple’s total revenue. Therefore, wherever iPhone sales go, so too will AAPL stock.
Why It Matters
Not to be forgotten, rumors indicate that Apple will also roll out new Mac computers, iPads and watches. However, all eyes will most likely be on the iPhone. In some ways, Apple’s latest smartphone represents a litmus test for the consumer economy. Therefore, the speculated pushed-up launch date adds even more intrigue for AAPL stock.
On the date of publication, Josh Enomoto did not have (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.
