Goldman Analysts Preview Key Announcements Ahead of Apple's Launch Event
Apple's Upcoming Launch Event
Apple is preparing to host a launch event titled "It's Glowtime," scheduled for 10 am PT / 1 pm ET. The world's most valuable company, under the leadership of Tim Cook, is expected to introduce new devices such as iPhone 16 models, smartwatches, and headphones. Further details about artificial intelligence software upgrades for the latest devices are also anticipated.
Goldman Analysts' Expectations
Goldman analysts Michael Ng and Katherine Campagna have shared their expectations ahead of this significant event. They predict that Apple will announce the launch of four new iPhone 16 models and expect the iPhone 16 series to become available on Friday, September 20th, with preorders starting on Friday, September 13.
Expected Features and Pricing of iPhone 16
The analysts predict that the new iPhone 16 models will feature size increases, WiFi 7 functionality, and additional hardware and software initiatives. They also suggest potential price increases for the Pro and Pro Max models. Press reports about price changes are mixed, with some expecting a $100 increase across all four models, while others expect prices to remain the same as the iPhone 15 family.
Hardware Updates and iOS 18
Modest form factor changes are expected for the new models, including display size increases, the introduction of the A18 chip series, the expansion of the Action button to all iPhone 16 models, and improved camera features. The iPhone 16 is also expected to launch with iOS 18, which includes updates centered around personalization, privacy, and productivity.
Impact on Apple's Stock
The Goldman analysts noted that historically, new iPhone debuts have not significantly impacted the performance of Apple's stock. However, they believe that improved carrier promotions for the iPhone 16 could boost sales. They forecast a 1% decline in iPhone revenue in F2024, but expect growth of 9% in F2025 and F2026.
AI-Enabled iPhone 16
In a separate note, Wedbush analyst Dan Ives stated that the AI-enabled iPhone 16 will trigger Apple's biggest upgrade cycle in history. He expects developers to integrate their AI models/tech into Apple Intelligence, leading to the creation of hundreds of generative AI-driven apps.
Expectations for New Apple Watches and AirPods
The analysts also expect Apple to announce the 4th generation of AirPods, featuring two models with different functionalities. They also anticipate potential announcements for a new iPad and iPad Mini.
Goldman Analysts' Rating on Apple
Goldman analysts have given Apple a 'Buy' rating with a 12-month target price of $276, reflecting a 33X from their NTM+1Y EPS. As of Monday morning, there is a 26% upside to Goldman's $276 PT.
Bottom Line
The upcoming Apple event is set to reveal a range of new devices and upgrades, with the AI-enabled iPhone 16 being a particular highlight. The analysts' predictions suggest a positive outlook for Apple's performance in the coming years. What are your thoughts on these expectations? Do you think Apple will meet them? Feel free to share this article with your friends and join the discussion. Don't forget to sign up for the Daily Briefing, which takes place every day at 6pm.
