Apple Faces Dilemma at Upcoming Product Launch: Price Increases or Profit Margin Pressure
Apple is set to unveil its new products on Thursday, marking the first event since John Tennus took over as CEO.
The company will likely introduce three new iPhone models: the iPhone 18 Pro, the iPhone 18 Pro Max, and its first foldable smartphone, referred to as the Fold/Ultra. KeyBanc, a US investment bank, predicts that this launch could be a negative catalyst for Apple's stock price.
The market will closely monitor Apple's pricing strategy during this event. The company faces two options: implementing across-the-board price increases or selective, modest price hikes.
KeyBanc believes that either option poses risks for Apple's stock price. Historically, Apple's stock tends to weaken around new iPhone model launches, with an average decline of 0.72% on the day of launch and 1.22% over the following five trading days.