If there ever was a time for consumer technology stalwart Apple (NASDAQ:AAPL) to impress Wall Street, it would be with the company’s hotly anticipated iPhone 15. According to a Bloomberg report, the next-generation smartphone will make its sales debut around Sept. 22. In the meantime, sentiment for AAPL stock has soured amid a tough backdrop for the underlying digital device market.
As CNBC stated, Apple’s unveiling of its latest iPhones draws millions of viewers online. Primarily, consumers digest the raft of new features, thus whetting their appetite. In turn, analysts focus on these new product launches to gauge consumer confidence. So far, results have been encouraging, with wealthy consumers consistently opening their wallets.
Per Bloomberg, the marketing event preceding the iPhone 15 sale date should occur on Sept. 12 or Sept. 13.
Though anticipation runs hot among Apple’s loyal fanbase, the company likely must hit it out of the park with the iPhone 15 debut. While AAPL stock remains up around 42% since the beginning of this year, recent volatility raised alarm. In the trailing month, shares are down almost 7%. Worryingly, demand for smartphones and PCs has faded and may continue to struggle throughout the year.
An Acid Test Awaits AAPL Stock
On the positive front, the iPhone 15 should represent the most significant upgrade since Apple integrated 5G capabilities to the phone three years ago. That’s according to another Bloomberg report. Combined with the company’s practically unparalleled brand power, AAPL stock could be off to the races. However, skepticism has started to rise amid pressures on the consumer economy.
From the aforementioned Bloomberg article, the iPhone 15 will leverage a manufacturing technique that enables the bezel around the screen to be smaller than prior iterations. Under this framework, users will enjoy almost true edge-to-edge display. Further, the latest-gen iPhone will incorporate a faster chip, and the camera upgrade will be significant. Plus, the device will be encased in titanium, offering better smudge resistance.
Of course, the big question is whether or not the new features will be enough to drive sales. In prior product launches, when Apple pushed the price point of its phones to just under four digits and eventually beyond, the company’s faithful followers easily overlooked the hefty expense.
However, circumstances have dramatically changed under the post-pandemic paradigm. Most conspicuously, inflation crimped consumer sentiment, and it’s not just an esoteric concept. Recently, data from S&P Global Mobility showed that the average age of passenger vehicles in the U.S. hit a fresh record. This implies that drivers are eschewing replacement vehicles in favor of running their current cars as long as possible.
Fundamentally, that’s not a great look for any discretionary retail player.
Why It Matters
Adding to the pressure is that Apple did not enjoy a holistically strong earnings report for its second quarter. Although profit increased 2% to $19.88 billion, the company posted revenue that fell 1% to $81.8 billion, per The New York Times. Since iPhones represent half of Apple’s sales, the upcoming product launch event will be an acid test 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.
