Apple (AAPL:NASDAQ) is thought to be preparing a flurry of new product launches as the tech giant attempts to reverse a slump in its share price.

This year, Apple shares have fallen more than 22% as investors rejected growth stocks in the face of rising interest rates aimed at curbing high inflation, worse than the performance of the S&P 500 (-19%).

Apple is now trading on its lowest price to earnings multiple since the Covid outbreak in early 2020, at around 21.7 times 2023 earnings estimates.

The company is hoping that earnings could be boosted by one of the most ambitious periods of new products in its history.

The ‘deluge’ of product launches, according to Bloomberg, will come over the next nine to 12 months, including four iPhone 14 models, three Apple Watch variations, several Macs powered by updated M2 and M3 microchips, the company’s first mixed-reality headset, low-end and high-end iPads, updated AirPod Pro earbuds, a fresh HomePod speaker and an upgraded Apple TV.

Apple typically launches new flagship iPhone models in the autumn season towards the end of its fiscal fourth quarter. New iPhone launches help bolster year-end revenues, although it has had mixed success in recent years, with 2020’s iPhone 12 admired by most analysts but last year’s iPhone 13 largely failing to impress.

Chief executive Tim Cook wants to drive Apple into the financial services industry, an area he believes could be a key driver for the iPhone maker over the long term.

One of its early steps has been to launch into the fast-growing buy now, pay later market, where it can use its enormous balance sheet strength to help buyers of new iPhones and other Apple gadgets during the current cost of living crisis. Apple currently has net cash of around $73 billion.

Apple is also thought to have agreed a contract to use the one-click payments technology provided by UK business Bango (BGO:AIM) across its app store. Bango already provides direct carrier billing for the app stores of Alphabet (GOOG:NASDAQ), Amazon (AMZN:NASDAQ) and Facebook-owner Meta Platforms (META:NASDAQ).

Recession worries continue to dog the mood of financial markets, and investors are becoming increasingly concerned that millions of consumers could delay high-end purchases like new iPhones.

But analysts remain mixed over the threat of recession in the US and elsewhere. Citibank sees a 50% probability of a recession, while JPMorgan sees stocks recouping some of their first-half losses in the second part of 2022.

Apple is Berkshire Hathaway’s (BRK.B:NYSE) largest holding and Warren Buffett added an extra $600 million worth of stock earlier this year, taking the conglomerate’s stake in the tech giant to around $160 billion.

‹ Previous2022-06-30Next ›