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Today (9 September) sees Apple (NASDAQ:AAPL) kick off its annual product event, which has been titled ‘Awe-Dropping by the business. Ultimately, consumers will be the decision makers when it comes to rating the new releases and features. Yet investors will also be keenly watching the reaction in Apple stock, with several points worth keeping an eye out for.
Impact on pricing
Investors will zero in on whether Apple can absorb the rising costs from US tariffs, now estimated to exceed $1bn this quarter, without hiking prices across its flagship iPhone line-up.
The swift shift in production to India, aimed at mitigating the impact of rising levies associated with dealing with China, is likely to have cost the business in the short term. Exactly how much of this will be passed on to consumers remains to be seen. It might be that increases will be reserved for higher-storage or premium models. After all, this would allow it to keep demand high for the mainstream models.
If pricing is reasonable, Apple stock could rally, as demand for the new products could be boosted. Further, it would help the view that the overall impact of tariffs is being managed well.
Apple Intelligence rollout
The company’s AI credentials are under scrutiny with the event this week. The much-anticipated Siri overhaul is delayed to 2026. So all eyes are on whether Apple can at least showcase meaningful AI enhancements. Apple Intelligence was released last year, but both consumers and investors are waiting to see if proper improvements to existing features are coming out. This could come via surprise integrations with partnerships, such as those with OpenAI. Or it could be via more subtle features, such as having translation on the new generation of AirPods.
Whatever the outcome, Apple stock could be sensitive to this point. The AI race is picking up pace, and any signs that Apple is being left behind won’t go down well. On the other hand, if we get new features or even teasers of new upgrades coming soon, it could help to lift the share price in the short term.
The bottom line
The product event for Apple is one of the most important in recent years. It goes beyond just providing a new iPhone edition for consumers to upgrade to. Rather, it’ll go a long way to show investors just how well the company is dealing with the current market environment.
The Apple share price is up 8.5% over the last year. With a price-to-earnings ratio of 33, it’s certainly not the cheapest tech stock right now. I’m going to see how the event pans out before making a decision on what to do. In the coming weeks, I’ll have a much better view of whether I should be thinking about buying the stock for potential long-term gains.
