Apple is set to hold its much-anticipated iPhone launch event on Wednesday. The spotlight will be on the new foldable iPhone, which will be a big test for both the company and its new chief executive, John Ternus.
Apple’s shares slipped slightly on Tuesday, continuing last week’s losses. Still, the stock has made solid gains this month ahead of the event.
Most people feel positive about Apple ahead of Wednesday’s announcement. Wall Street expects the company to reveal the iPhone 18 Pro, iPhone 18 Pro Max, and the long-awaited foldable iPhone. The foldable device is getting the most attention, but analysts also expect iPhone prices to rise because of higher memory costs linked to strong demand for AI and data centers. Investors will be looking at whether the new products are worth the higher prices, especially wondering if the foldable iPhone can meet expectations.
MoffettNathanson increased its price target for Apple this week but kept a neutral view on the stock. The firm said optimistic investors hope the foldable device could be a category-defining launch, even though it is arriving years after competitors. They argue that its likely high price could help boost both revenue and profit margins. On the other hand, skeptics worry the product might only appeal to a small group, similar to last year’s less popular iPhone Air.
MoffettNathanson pointed out that the foldable iPhone does not have a clear use case. It sits between a productivity device and a compact smartphone, and the firm suggested it could take away some sales from Apple’s current products.
This situation puts extra pressure on Ternus as he officially replaces outgoing CEO Tim Cook. MoffettNathanson said the new CEO is taking over during one of Apple’s most exciting times for new products, but the company’s high valuation means there is little room for mistakes.
Investors hoping for a big boost to Apple’s stock after Wednesday’s event may be disappointed, as past trends suggest the market reaction could be muted.
