In Cupertino, California’s Apple Park at the Steve Jobs Theater, Apple is set to announce new iPhone models and more today at 10am PDT / 1pm EDT (6pm in London, 7pm in Berlin and Paris).
iPhone launches have generally been a positive catalyst for Apple shares, which have gained nine out of 13 times in the 60 days following such an event…
Many analysts expect Apple to keep its pricing the same as last year even though tariffs on products made in China are set to go into effect on Dec. 15. “We suspect that Apple will likely maintain current iPhone prices on its 3 new models ($749/$999/$1099), and may keep memory and storage content the same as last year – despite dramatic cost declines – providing margin cushion to help offset potential tariffs or required promotional activity,” wrote Bernstein analyst Toni Sacconaghi from New York.
Despite the potential tariff headwind, Wall Street is mostly positive on Apple… “We view this week’s launch as putting fuel in Apple’s growth tank which is much needed as Cupertino navigates mature secular smartphone headwinds which are being exacerbated by the US/China high stakes tariff poker game,” wrote Wedbush Securities Managing Director Dan Ives, who has a $245 price target – more than 14 percent above where shares closed on Monday.
MacDailyNews Take: Basically, the favorable component costs will allow Apple to absorb any U.S. import tariff impact without significantly impacting margins which is good news for Apple shares and Apple shareholders.