Apple's Foldable Future: Can New Lineup Support Margins?

Apple's stock price is holding steady around $325 on September 3, thanks to expectations for its upcoming event on September 9. The company's new CEO, John Ternus, has described the presentation as a 'huge launch', which could include the debut of Apple's first foldable iPhone.

The lower risk-free yields in the bond market are also supporting Apple's valuation, partially easing pressure on its multiple. However, investors will be watching closely to see if the new lineup can support margins without the help of tariff refunds and increase the average selling price of devices.

The 10-year Treasury yield has fallen to around 4.74-4.77% today after peaking above 4.81%, creating a favorable backdrop for Apple's stock. Nevertheless, event risk is rising as expectations are already high, making pricing, initial shipment volumes, and delivery timelines crucial factors.

Apple's latest earnings report showed strong results, with revenue reaching $109.4 billion, up 16% year-over-year, and EPS rising 29% to $2.02. However, the company will need to demonstrate its ability to repeat these numbers without relying on tariff refunds.