After months of anticipation, Apple (NASDAQ:AAPL) has finally unveiled many new innovative products including a new Watch, Airpods, and the, now staple, iPhone. Yesterday, the tech giant showed investors and consumers the new iPhone 14 and what it includes. Specifically, it revealed the iPhone 14, 14 Plus, 14 Pro and 14 Max. As InvestorPlace writer William White reports: “Preorders for these smartphones open this Friday and costs are the same compared to last year’s models.” However, the latest models come with satellite service, enabling users to make calls from anywhere. Apple has also done away with physical SIM cards, implementing a new digital option. This hotly awaited new product line could be exactly what AAPL stock needs to finally start trending upwards.
For all the momentum this week has brought, AAPL is still struggling to catch fire. It rose earlier today before taking a dip although its current trajectory hints at a late afternoon rally. As it turns out, investors have reason to be optimistic that AAPL stock will rise again soon. A study from AskGamblers reveals that, per Google Analytics, web searches for the phrase “Pre-order iPhone” surged by an astounding 1,210% yesterday. That type of interest bodes very well for AAPL stock if it translates into sales in the weeks ahead. Let’s take a closer look at what investors can expect.
What It Means for AAPL Stock
As CNBC notes, historically, AAPL stock hasn’t sharply outperformed the S&P 500 after a new iPhone release. Data from Bernstein has shown that “despite the usual hype, [AAPL] shares typically perform just about in-line with the market one month after the iPhone reveal.” Analyst Toni Sacconaghi has stated that the firm doesn’t expect this year to be any different for Apple. But that doesn’t mean that AAPL stock can’t pull back into the green, especially as consumer interest in the iPhone 14 line is clearly high. An AskGamblers spokesperson stated the following:
The iPhone is a staple of modern day culture with Apple events making headlines across the globe every time they announce a new model or feature. The iPhone 14 launch is no exception, with these findings highlighting just how important it is to consumers to stay up to date with the latest technology. The new product will also have a heavy focus on assisting consumers when they are in a difficult situation, by sending texts when off the grid and sending emergency calls for help.
It is important for investors to note that the new iPhone has only provided consumers with more reason to use it. It has only made improvements and even in times of inflation, maintains the starting price of $799. Consumers will now be able to make calls when they are out of cellular tower range, an important feature for emergency situations. While search interest did dip today, it is still high enough for investors to confidently assume that AAPL stock will surge. The company could also have another growth catalyst approaching. Elon Musk has said that SpaceX is discussing the possibility with Apple of a satellite technology partnership. Given the recent addition of a satellite to the new iPhone, this seems an excellent opportunity for both companies to grow.
Even if it doesn’t surge ahead of the S&P 500, AAPL stock is well-positioned to start rising as the high search interest translates into sales. It may not be as quick as investors would like but the data from AskGamblers indicates that it is highly likely.
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.
