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Sep 12, 2022

Did the iPhone 14 Announcement Affect Apple Stock Price?

By:Ryan Sullivan

The Apple iPhone 14 base, Plus, Pro, and Pro Max

A new processor, an improved camera, and a new iOS will be brought to us in the form of the iPhone 14 we learned when Apple announced its new flagship last Wednesday. Apple has done it once again, bringing us their best combination of cutting-edge technology and design in one smartphone. Well, four smartphones actually. You can have the iPhone 14 base model, the Plus, Pro, and Pro Max, in several trendy color tones.

This is why Apple is so widely loved, because they bring their customers exactly what they want each year. Even if their customers don’t know what they want, Apple will find it and put it together in a beautiful package. We can count on Apple to compete every gift giving season.

This is appealing for the consumer and the investor. The appeal of an Apple product is inherent in its technology and design, but investors are also drawn to the model that Apple has developed to be able to bring their products to market profitably.

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AAPL Stock Performance in 2022

AAPL is currently trading at $162.28, down 10.84 percent from its opening price of 2022. AAPL’s all time high price is $182.94, which was recorded on January 4th, 2022. AAPL is trading up 7 points, or 5.05 percent, from its closing price last Wednesday the 7th, the day the iPhone 14 announcement happened.

At the time of writing, AAPL is the only large-cap stock with a market capitalization over $2 trillion, at $2.59 trillion. AAPL is a juggernaut in the market and where AAPL goes the market tends to lean. AAPL is heavily evaluated because it pays to know where AAPL’s stock price is headed.

It is also important to know that AAPL is purchased by many different funds across the market for many reasons. AAPL tends to make up a large portion of portfolios even when investors are not investing in AAPL directly.

Fig. 1: Year to date price percentage change for SPY, AAPL, QQQ, and GLD.

Did the iPhone 14 announcement affect AAPL’s stock price?

Yes, but not very much. The market anticipates most of what AAPL will do each year. From corporate acquisitions to product announcements, analysts work around the clock to predict when these events will occur and how the market will react.

Once an event like a new iPhone announcement is likely in the near term, the market begins to price in what it thinks the result of the announcement will be and any future sales that occur. Very quickly the entire life cycle of a new product is priced into AAPL’s market price, before the product is even available for purchase.

The only factors that would then affect the stock price relating to that product announcement are factors that the market cannot predict. Such as unknown circumstances that would change the normal life cycle of an AAPL product. These binary events could be political, weather, economic, or resource related, for example.

So, it is likely that the current market price for AAPL’s stock reflects a price that accounts for the iPhone 14 announcement and any possible factors that can be accounted for relating to the iPhone 14.

The announcement itself also likely drew attention to the company and its stock, which could have brought in additional buyers to bump the price up in the near term. However, that type of activity is quickly accounted for in the marketplace and adjusted accordingly.

Where is AAPL stock price heading next?

AAPL’s price action has been bullish since late June. AAPL hit a near term high on August 17th, 2022 and has since pulled back. The last few days of trading have been very bullish for AAPL.

The $130 to $145 price range was explored in mid-May to mid-July 2022. From that range we pushed up all the way to $176.15, to test the all-time high range again. That type of price action tells me that AAPL does not want to trade in the $130 to $145 range in the near term. It would rather shoot up to test all-time highs than remain testing support.

It is likely that AAPL will continue to move sideways. The last push up near all-time highs fell short and came back down quickly. The $150 to $175 range is where we could spend time through the rest of 2022. Look for price action to test these support and resistance levels from where we are now.

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