Apple Event 2023: iPhone Unveilings a Delight for Bargain Hunters

In the past, Apple Inc.’s iPhone launches have typically resulted in a decline in the company’s stock. However, the subsequent weeks often present a more favorable chance to purchase the stock at a lower price.

Over the past five years, September has been Apple’s worst month of the year, with shares down an average of 4.5%, compared to 3.2% for the S&P 500. Meanwhile, October has been one of Apple’s average gains of 3.8% over the same period. Also see all iPhone 15 live updates here.

“If you’re a long-term owner and you see this becoming a consumer business, these pullbacks are opportunities,” said Gene Munster, CEO and founder of Deepwater Asset Management.

While the stock has generally risen in the months leading up to the event, this year’s rise has been choppy. Apple shares fell in August after a disappointing earnings report and have continued this month on government concerns about restrictions on iPhones in China, its biggest international market. In total, Apple has lost nearly $300 billion in market value since closing at a record low on July 31.

According to Jason Benowitz, senior portfolio manager at CI Roosevelt Private Wealth, China fears and the seasonality of iPhone events have provided a compelling starting point.

“The US and China need Apple to create jobs and wealth in their own countries,” he said. “These fundamental facts do not change according to recent media reports, and we expect Apple to operate successfully in China for many years to come.”

Apple’s event is scheduled to begin at 10 a.m. Tuesday in California, and will feature the iPhone 15 lineup, as well as next-generation watches and AirPods. Bloomberg News has reported that the iPhone lineup will include two entry-level models and two high-end models.

Of course, Apple isn’t the only megacap stock under pressure. The Nasdaq 100 is down more than 2% from its peak in July on rising Treasury yields and signs that the Federal Reserve is willing to keep interest rates higher for longer. Tesla Inc. and Microsoft Inc. have fallen more than 5% since their July 18 peak. Even chipmaker Nvidia Corp. is down 4.9 percent.

Despite the pullback, Apple shares are still up 38 percent this year. The stock is priced at 27 times forward earnings, down from July’s peak of 30 times but well above the 18 times average over the past decade.

Apple needs a boost after three consecutive quarters of declining revenue. According to data collected by Bloomberg, analysts on average believe that the company’s annual turnover will recover in 2024, after this year it has fallen by around 2.9 percent. This will be helped by the company raising prices on more expensive models, said Angelo Zino, senior equity analyst at CFRA Research, adding that this would be a positive catalyst for the stock.

The recent performance has “hopefully set the stage for an October and year-end rally,” said Ken Mahoney, chief executive of Mahoney Asset Management.

“I think we have to get through September, which obviously has been very volatile so far,” he said. “I’m an apple bull, let’s put it out there, horns and all.”

Oracle Corp. fell as much as 10% in premarket trading on Tuesday after the infrastructure software company reported cloud sales growth that slowed in the quarter, dampening enthusiasm for the company’s expansion efforts in a competitive market. If pre-sales fall, Oracle’s decline will be the biggest since March 2020.