Apple’s upcoming “It’s Glowtime” event, set for September 9, 2024, is expected to feature significant product announcements, primarily the iPhone 16 lineup, new Apple (NASDAQ:AAPL) Watch models, and updated AirPods, analysts at Goldman Sachs said Tuesday.
While the event may not have a notable impact on Apple's stock price, there is still potential for upside surprises.
“In the past 5 years, AAPL stock underperformed the S&P 500 by an average of 70 bps on the day of the iPhone announcement, and we expect this year’s event to be similarly immaterial to the stock price,” analysts at Goldman Sachs wrote.
“That said, upside surprises could include (1) the announcement of a price increase on iPhones; (2) earlier-than-expected AI features and apps; (3) new iPad announcements; and (4) better-than-expected carrier promotions,” they added.
Key product announcements are expected to revolve around the iPhone 16 series, which will introduce four new models: iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max.
Noteworthy upgrades include larger displays on the Pro and Pro Max models, now at 6.3” and 6.9” respectively, alongside the incorporation of WiFi 7 and potential price increases for the higher-end models.
In addition, Apple is anticipated to introduce processor innovations and improvements to camera features, including the addition of a “Capture” button on all models. As a further enhancement, AI-powered features such as “Apple Intelligence” may drive future iPhone upgrades and boost revenue growth beyond 2024.
“We forecast iPhone revenue to be -1% yoy in F2024E but expect iPhone revenue growth to accelerate to 9% in both F2025 and F2026, catalyzed by AI features and new iPhone hardware form factors,” analysts at Goldman Sachs noted.
Alongside the new iPhone launch, fresh Apple Watch models are also expected. The Apple Watch Series 10, Apple Watch Ultra 3, and Apple Watch SE 3 will likely be revealed, with upgrades focusing on larger display sizes and the introduction of a new S10 processor.
While there are not expected to be substantial price changes, these new models will offer improved performance, particularly for the Ultra 3.
Apple is also likely to unveil the 4th-generation AirPods, with notable features including noise cancellation and a speaker in the charging case for location tracking, as well as USB-C charging ports.
Goldman Sachs reiterated a Buy rating on Apple stock ahead of the event, with a price target of $276.