Apple ticks lower in run-up to expected launch of folding phone
AAPL•Apple shares up more than 15% year to date
AAPL has gained over 15% YTD, the second best-performing "Magnificent Seven" member, after AI chip giant Nvidia's 20% rise.
Premium pricing could lift revenue and margins
"Its premium price should lift revenue, margins, and average selling prices, while a genuinely new form factor may tempt customers who have been holding on to older phones for longer," said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
How demand and supply evolve after the initial hype has faded is the bigger question, said Britzman.
Apple falls ahead of expected foldable phone launch
Shares of Apple AAPL.O fall 1.1% to $312.65 ahead of its first launch event under new CEO John Ternus.
Markets expect the iPhone maker to unveil an expensive foldable phone at its California headquarters, in what could be the most noticeable overhaul after the removal of the home button on the iPhone X in 2017.
Foldable phones were first shipped by Chinese display maker Royole in 2018, followed by Samsung's Galaxy Fold months later; Alphabet's Google and Huawei have launched similar products since.
Analysts expect iPhone updates to be delayed until next spring
Analysts expect AAPL to hold off on updates to its iPhones until next spring, in an attempt to smoothen out its sales cycle, which typically shows a revenue bump in the year-end quarter.
S&P Global Visible Alpha estimates AAPL to generate $55.5 bln in iPhone revenue in Q4 and $274.2 bln next year, suggesting the market was pricing in users upgrading to next generation phones.
