The iPhone 15 Effect: How Apple’s Next Release Will Impact 2024 Earnings

Despite most stocks going down on Friday, Apple’s shares went up because they started selling the iPhone 15. Apple’s stock price at the end of Friday was $174.79, and it increased by 0.49%. This year, Apple’s shares have done well, going up by 34.5%, which is better than the S&P 500 index that went up by 12.5%.

However, like many other big tech companies, Apple’s shares have been mostly stable or slightly down in the past month. This is because investors are worried about the Federal Reserve raising interest rates to control the increasing cost of living.

The iPhone 15 Effect How Apple's Next Release Will Impact 2024 Earnings

iPhone 15 boosts stock value

The launch of the iPhone 15, which people were really looking forward to, might help Apple’s stock go up again. Even though the iPhone is the main way Apple makes money, the number of iPhones they’ve sold has been going down for the last three quarters. But now, with the iPhone 15, especially the Pro and Pro Max versions, it’s expected that more people will want to buy them, and this could make the number of iPhones sold go up again. An analyst from Wedbush Securities named Dan Ives thinks that the demand for these new iPhone models is strong, and he believes Apple’s stock will do well, setting a target price of $240 for it.

Ives also mentioned that there are long lines of people waiting to buy the iPhone 15 Pro and Pro Max in China, Europe, and the U.S. He said that at the Midtown Apple Store on Friday, most people were interested in the Pro Max version, and he thinks that there might not be enough of the iPhone 15 Pro Max available because a lot of people want it. He also talked about how phone carriers like Verizon, T-Mobile, and AT&T are offering really good deals on the iPhone 15, and because of that, more people are pre-ordering it than he and most other analysts on Wall Street expected.

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If we consider Ives’ prediction of a $240 price for Apple’s stock, that means it could go up by nearly 40% from where it is now. Ives thinks that Apple might sell between 85 million and 90 million iPhone 15 units. We’re about to finish the third quarter in six days, so the big question is whether the iPhone 15 can keep up this level of demand during the holiday season. Some people are even calling the iPhone 15 a mini-computer because it can connect to a 4K monitor using a USB-C port instead of the older “Lightning” port.

For regular users, this change to a USB-C port is beneficial. The old lightning port was slower, with a transfer speed of only 480 Mbps, while the iPhone 15’s new cable is much faster at 10Gbps for quicker charging. Additionally, the iPhone 15 comes with a 48-megapixel camera, better battery life, improved performance, and uses a special chip based on Taiwan Semiconductor’s 3nm technology. This chip also supports hardware-accelerated ray tracing, making the iPhone 15 quite powerful.

The more expensive Pro Max version of the iPhone 15 has a really cool feature for photography lovers: a 5-6x optical zoom lens. With all these fancy features and technologies, I think the iPhone 15 and 15 Pro will get more people interested in buying them, which will help Apple sell more phones and make more money in the fiscal year 2024. Apple will announce how much money they made in the fourth quarter of this year in mid-to-late October. They are expected to have earnings of $1.39 per share for the quarter ending in September, and their revenue is expected to be $89.22 billion, which is down 1% compared to last year.

For the whole year of 2023, Apple is expected to earn $6.07 per share and have revenue of $383.11 billion. That’s a slight decrease of 0.65% for earnings and 2.8% for revenue compared to the previous year. Even though the numbers might go down a little, I believe Apple’s stock will go up at the end of the year because of the iPhone 15, which could create a sort of “mini super cycle” and bring in more revenue than expected in 2024.

Please note that the opinions in this text are from the author and not necessarily the same as those of Critiqueportal.

FAQs for the Blog Post: “iPhone 15 Boosts Apple Stock and Future Outlook”

  1. Why did Apple’s stock price go up on the launch of the iPhone 15, despite a general market decline?
    • Apple’s stock rose because of strong anticipation for the iPhone 15, which is expected to boost sales and revenue for the company.
  2. How well have Apple’s shares performed this year compared to the S&P 500 index?
    • Apple’s shares have outperformed the S&P 500, with a 34.5% increase this year compared to the index’s 12.5% rise.
  3. Why have many big tech companies, including Apple, seen stable or slightly declining share prices recently?
    • Investor concerns about the Federal Reserve raising interest rates to control inflation have affected big tech stocks.
  4. What are the key features of the iPhone 15 that are expected to drive demand?
    • The iPhone 15, particularly the Pro and Pro Max versions, comes with advanced features, a USB-C port for faster charging, improved camera capabilities, and better performance.
  5. What is the outlook for Apple’s stock and revenue in 2024, according to analyst Dan Ives?
    • Dan Ives predicts that Apple’s stock could reach $240, representing potential growth of nearly 40%. He also expects strong iPhone 15 sales to drive higher-than-expected revenue in 2024.

Hello, I'm David, the author behind CritiquePortal. With a passion for technology, software, fashion, and all things innovative, I embarked on a journey to share my insights and knowledge with you. As a tech enthusiast and a fashion aficionado, I aim to provide you with well-informed articles, reviews, and trends that will keep you updated and inspired. Join me on this exciting exploration of the ever-evolving world of tech and style.

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