Why New iPhone Variants Could Send Apple Soaring
Apple Inc. (Nasdaq: AAPL) is set to launch a slew of new products in September, and the news should send shares into the stratosphere.
The Cupertino, California-based iPhone maker is returning to its regular September product launch cycle, according to Mark Gurman at Bloomberg. New iPhones, Apple Watches, AirPods and iPads are all coming.
Savvy investors should strongly consider buying shares ahead of the launch. Traditionally, Apple’s stock price rallies into the launch of new iPhones. The handsets are the biggest contributor to sales and profits.
They’re also halo products that suck people into the giant Apple ecosystem.
New iPhones lead to iPad, MacBook and Apple Watch sales for mom and dad. Older iPhones are handed down to children who buy AirPods and iPad minis.
The more Apple devices a family owns … the harder it is to escape.
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The products work too well together. The ecosystem is sticky with integrated iMessage and FaceTime. Apple Music family plans are irresistible, too.
The opportunity for investors is the trade going into the new iPhone reveal.
|Renders of Apple’s iPhone 13 based on leaks. Source: Forbes|
In the past, it’s been safe to buy shares two weeks prior to the early September launch. The exception was 2020 when the traditional back-to-school event was pushed to Oct. 13 due to the COVID-19 pandemic.
Even then, shares zoomed from a low of $102.44 on Sept. 21 to a high of $124.38 on the launch date. That’s a nifty 20% return.
Shares are currently stuck in a consolidation between $142 and $149.
If history is any indication, iPhone launches typically come on the Tuesday following Labor Day. That would put the 2021 event on Sept. 8, with new smartphones ready for shipping on Sept. 17.
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Gurman says to expect updated Airpods, an iPad mini with a larger display and thinner bezels and a new Apple Watch with a flatter display, in addition to four new iPhone 13 variants.
The smart way to potentially play this trend is by not waiting for the event. Savvy investors should strongly consider buying shares now, then selling into the news. Remember to do your own due diligence before buying anything.
Jon D. Markman