On September 7th Apple will be holding its highly-anticipated Keynote event. The traders are excited: if the new releases exceed the public’s expectations, Apple stock is going to soar! But what are the chances? You be the judge. IQ Option is here to bring you the digest of the rumoured upgrades, Apple’s legal struggles and stock analysis.
The Rumours
iPhone 7: Oh, Apple, it’s been so long…. Since the last major upgrade on the iPhone, that is. The 6s version turned out to be slightly underwhelming. The 5SE went largely unnoticed. Leaked photos of the iPhone 7 prototype, however, got the public intrigued: two front-facing cameras? Could it be that Apple is working on 3D photography? Another hypothesis claims the camera duo could be responsible for deeper depth of field, similar to how optic lenses on DSLR cameras work. If that’s the case, Apple may be responsible for a revolution in mobile photography.
Another thing that was impossible to miss in the leaked pictures was the absence of a headphone jack. Rumour has it, iPhone users will have to either switch to lightning-pinned headphones or the wireless ones. The later is supported by another leak. This time of an iPhone 7 Plus packaging, depicting the Wireless Earpods and listing them as part of the standard set.
Other rumours include a thinner body, a next-generation A10 processor and boosted storage space, starting at 32GB instead of 16GB and going up to 256GB.
Apple Watch 2: Ever since Apple CEO Tim Cook has promised that the Apple Watch will get “better and better” brand loyalists have been holding their breath for the release of the second generation. It’s quite possible Apple Watch 2 will be presented at the Keynote event, especially since more and more information on the coveted wearable has been leaking from Apple’s camp. The anticipated upgrades include a more battery efficient processor, a GPS chip and a Micro-LED screen instead of the current Amoled.
Software upgrade release dates: Looks like we’re about to get a sneak peek at the upcoming software upgrades and finally learn the dates of the scheduled releases. We’re talking iOS 10, WatchOS 3, tvOS and last but certainly not least – the Mac OS Sierra.
The Stakes
A lot is hanging on the success of the September event. Although over the past 5 years the Apple stock gained about 103% in value, 2016 has not been kind to the company thus far.
First came the disappointing Chinese sales figures. The Greater China revenue for the third fiscal quarter of 2016 took a sharp dip – down by 33% from the same time last year. Asia Pacific region showed a 20% decline, 11% in the Americas and 7% in Europe. Some analysts express doubt over Tim Cook’s leadership, considering that sales have been falling on an annual basis for the last two quarters and there’s no new hit product in sight.
And then there’s the $14 billion tax bill from the European Commission. “The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion [~$14 billion] to Apple,” reads the press-release. Naturally, investors are curious about what it means for the stock price. One the one hand, Apple will have to report an accrual, but on the other – considering the company’s market value is about $571 billion, the $14 billion they’ll need to pay out looks like a minor outflow.
To get a feeling on how the stock may react to the upcoming releases, take a look at our analysis of the way the stock was reacting to the major releases of the past 3 years:
All things considered, it’s safe to assume the September 7th Keynote event will have a profound effect on the Apple stock. Watch the Livestream via the tech-giant’s website at 17:00 GMT and trade on Apple stock with IQ Option.
