Should you buy Apple stock after its big ‘Glowtime’ event?

It was “shining time” for Apple (AAPL -0.36%) on monday. The tech giant unveiled its new lineup of iPhones, Apple watches and more.

Apple’s share price fell slightly despite the extraordinary attention its event received. However, Monday’s announcements could set the stage for a new era for the company. Should you buy Apple stock after its big new product reveal?

What comes from Apple

Let’s first look at all the new products coming from Apple. The big news of the “It’s Glowtime” event was the announcement of the newest iPhone models. These new iPhones will be available for pre-order starting September 13, 2024 and in stores on September 30.

Apple’s iPhone 16 will sell for $799, and the iPhone 16 Plus will be priced at $899. The two smartphones have larger screens and larger batteries than previous iPhones and will be available in five colors. They will also be dust and water resistant. It will have a key new feature — a new camera control button that makes taking photos easier.

The iPhone 16 Pro and iPhone 16 Pro Max are priced at $999 and $1199, respectively. These top models will be available in four titanium colors. Like the standard iPhone 16, they will also include the new camera control button.

Importantly, all new iPhones will have much more powerful chips — A18 for iPhone 16 and iPhone 16 Plus and A18 Pro for iPhone 16 Pro and iPhone 16 Pro Max. These chips will support the generative AI functionality of Apple Intelligence. The first genAI capabilities will be available in iOS 18, which should be released by October.

Apple also announced the new Apple Watch 10 and AirPods 4, AirPods Pro 2 and AirPods Max 2 at the “Glowtime” event. The new version of the Apple Watch has the largest display ever, along with a new, more powerful processor and the ability to detect sleep apnea. The new AirPods will have improved sound, with the AirPods Pro 2 including an over-the-counter hearing aid.

Two opinions about Apple

Apple CEO Tim Cook said at this week’s event: “The next generation of iPhones was designed for Apple Intelligence from the ground up. It marks the beginning of an exciting new era.” At least one Wall Street analyst agrees with Cook about the importance of new products and genAI capabilities.

Dan Ives of Wedbush Securities said in an interview with CBS MoneyWatch on monday:

It’s a historic event that kicks off the consumer AI revolution, now coming to Apple. About 20% of the world will eventually interact with AI through an Apple device, and it all starts today. Three hundred million iPhones haven’t been upgraded in four years, so that makes for what we think will be the strongest iPhone unit year in Apple’s history.

Another view of Apple’s new iPhones and genAI functionality is not so optimistic, however. Needham analyst Laura Martin noted that Apple is moving slowly with the release of Apple Intelligence, noting, “With lots of words like ‘later this year’ and ‘early next year,’ Apple’s core message for iPhone 16 was : Next year will be better. .”

ZDNet’s Jason Perlow had a similar interpretation. He wrote: “While I agree that Apple Intelligence has long-term potential, I’m not convinced that its first iteration will deliver the game-changing use that many anticipate.”

Is Apple stock a buy?

At first glance, it might seem like Apple’s new iPhones and genAI functionality won’t move the needle much for the stock. I wouldn’t make that bet though.

Ives is right that many iPhone users have older models. I guess Apple Intelligence could be just what they need to upgrade their smartphones. My guess is that we’ll see a strong fourth quarter for Apple, with momentum accelerating as the company introduces additional genAI capabilities over time.

Is Apple stock a buy? I think so — even if the glow from the company’s “Glowtime” event isn’t off to as bright a start as some investors would like.