Apple (NASDAQ:AAPL) announced a Sep. 10 event, likely to showcase the refresh in iPhones. Though the product update is a less important driver for revenue growth, it may help services and accessories sales.
Apple will probably announce a successor to the iPhone XS and will call it the Pro. It will have two variants: a 5.8-inch and a 6.5-inch OLED display option. The biggest feature addition is a triple-lens. A 6.1-inch model will replace the less expensive XR. Since it retired the iPhone SE model that targeted budget consumers, Apple may try to enter this market once again. That would help grow its ecosystem user base by attracting budget-minded consumers.
The company may announce a fully new Apple Watch. In 2018, Apple sold around 22.5 million units. This is up from the 7.8 million units sold in 2017. For 2020, the Watch refresh may get sleep tracking and battery life improvements.
At 18 times earnings, Apple stock is evenly valued but could face headwinds as U.S. tariffs on China goods lifts Apple Watch prices. Still, a trade war resolution and continued interest from consumers to sign up for services will lift revenue growth rates. Analysts are still bullish on AAPL stock and have a 9% upside target (or a $227 target, per tipranks).
