5 Reasons to Buy Apple Stock Before September 9th

Since the beginning of last year, one of the driving forces behind the market rally has been the rapid and continued adoption of artificial intelligence (AI). Indeed, many of this year’s best-performing stocks have AI in common.

One company that has been curiously left out of the conversation is Apple (AAPL -0.34%). While other tech giants have made a big splash in their plans to adopt and integrate generative AI, Apple has remained strangely silent. That is, until recently.

In early June, the company introduced Apple Intelligence, a suite of generative AI tools for iPhone, iPad, and Mac computers. The company noted that Apple Intelligence will be “deeply integrated” into future versions of its popular operating systems. Apple was also quick to point out that these tools will come with the company’s legendary focus on privacy.

Apple has scheduled its next new product launch for Monday, September 9, with all eyes on the expected release of the iPhone 16. That said, investors will also be watching closely to see what details the company provides about its AI functionality. Many expect the company to make a big splash, which begs the question: Should investors buy Apple stock ahead of the big event?

Here are five reasons why Apple stock is a smart buy ahead of September 9.

Image source: Apple.

1. History is on your side

Apple has a long history of releasing the next version of its flagship iPhone at an event in September, with the new devices shipping just weeks later. As a result, there is plenty of data to suggest how the stock will react following the company’s big reveal.

The data reveals that in the six months following the release of the new iPhone, stocks have gained more than 12% on average, according to Dow Jones Market Data (via Barron’s).

2. Growth is returning to the smartphone market

Macroeconomic headwinds over the past two years have hampered smartphone sales. The market declined in 2023, with global smartphone shipments falling 3.2% in 2023, according to market intelligence firm IDC. This is not surprising given that inflation has been stubbornly perched at 20-year highs.

However, with inflation cooling, consumers have more discretionary income, which is boosting smartphone sales. Just this week, IDC released its updated forecast for 2024, and the news was decidedly good. Global smartphone shipments are expected to grow nearly 6% in 2024, reversing last year’s declines.

A rising tide lifts all boats, or so they say, so rising smartphone sales will no doubt benefit Apple.

3. A growing market share

Apple’s iPhones have long been among the most sought-after, but the company has reached a new peak in 2023. For the first time last year, the company occupied each of the top seven spots on the list of the 10 best-selling smartphones, according to to data compiled by Counterpoint Research.

This came at a time when global smartphone sales were on the decline — as noted above — making the achievement all the more notable.

4. Application Held

The past two years have been challenging for Apple. Sales fell 3% last year and have only just begun to recover. Revenue rose 1% in the first nine months of fiscal 2024, weighed down by iPhone sales, which fell 1%.

One of the biggest factors affecting Apple’s sales last year was the state of the economy. Inflation reduced spending and consumers kept their existing iPhones longer. However, with the economy on the mend, iPhone faithful will be looking to upgrade their existing devices.

Wedbush analyst Dan Ives estimates that there are about 300 million iPhones that haven’t been updated in more than 4 years. He also suggests that demand could lead to the sale of 240 million devices in fiscal year 2025.

Improving economic conditions could trigger a wave of pent-up demand, which would be a boon for Apple and its shareholders.

5. Wildcard AI

The next iPhone release will be the first to include Apple Intelligence, the company’s take on generative AI. It’s no secret that artificial intelligence has gone viral and captured the public’s imagination, and iPhone users are probably not immune.

We don’t yet have many details on what AI-based features will be included in the upcoming product launch, but a significant improvement in functionality and novelty factor could be enough to generate strong demand for Apple’s upcoming product cycle.

Beyond AI-powered features, there is also the long-term potential for applications that use generative artificial intelligence. It’s still early days for this groundbreaking technology, so there are still many more opportunities to create new use cases with AI. This, in turn, could generate additional demand for the iPhone.

Buying before September 9th?

I generally urge investors to stay focused on the long term, but this is one of those rare exceptions. There are a number of short-term catalysts that could propel the stock higher in the coming months — but there’s still no substitute for a long-term mindset.

For investors interested in initiating a position or adding to their stake in Apple, now I might have a good time

Either way, I think the stars are starting to align for Apple and its investors, and the recent challenges could soon be a thing of the past.