Wall Street analysts predict a muted investor response to Apple's iPhone 15 introduction on Tuesday. In recent years, new iPhone introductions haven't given Apple stock much of a lift.
The reason for the nonchalant response to new iPhone reveals has to do with the incremental nature of upgrades to the device. Plus, most of the news leaks out ahead of these unveiling events.
"Historically, the iPhone launch has been a sell-the-news event," Morgan Stanley analyst Erik Woodring said in a note to clients.
Apple stock typically rises ahead of a new iPhone introduction. But this week shares were rocked by news that China is banning central government officials from using iPhones. The Wall Street Journal said China cited national security concerns for the move.
Apple Stock Slides Ahead Of iPhone 15 Debut
On the stock market today, Apple stock fell 2.9% to 177.56. On Wednesday, Apple stock dropped 3.6%.
Meanwhile, analysts expect Apple to announce four new handsets on Tuesday: two basic versions and two high-end "Pro" models. The iPhone 15 Pro models will include more technology upgrades and could see price increases over the current iPhone 14 Pro models.
"We don't expect new game-changing features to be announced," Monness Crespi Hardt analyst Brian White said in his note to clients. "Instead, we look for more incremental improvements that keep the iPhone's evolution heading in the right direction."
The Pro models of the iPhone 15 will use the new A17 processor, the first chip made at 3-nanometer scale, making the phone faster and more power efficient.
The Pro models also will sport design improvements such as a titanium frame, improved battery life and more memory. Plus, the top-of-the-line Pro Max model will include an upgraded camera with a "periscope lens" for greater optical zoom capability, analysts say.
In addition, analysts predict Apple will switch to a USB-C charging cable for the iPhone 15 from the company's proprietary Lightning cable. USB-C will allow for faster charging and data transfer speeds.
Price Increases Coming For Pro Models?
The base models will have the same pricing as their iPhone 14 predecessors. But the Pro models could cost $100 more, reports indicate. That would push the starting prices for the Pro and Pro Max models to $1,099 and $1,199, respectively. However, some analysts have suggested that the Pro Max model could cost $150 to $200 more than last year's version.
"Given the popularity of the iPhone 14 Pro models compared to the iPhone 14 models, Apple may believe consumers will be willing to pay more without much fuss," White said.
He added, "Given the state of the economy, and the macro risks we see on the horizon, we doubt consumers will be thrilled to pay a higher price for a new iPhone and we expect such a move will ultimately curtail shipment volumes."
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