Apple has unveiled new smart home devices. Will they help boost its stock price?

On Tuesday, as part of a presentation focused on “smart home” products, Apple unveiled a range of new and updated devices. However, according to analysts, it remains unclear whether this will be enough to boost the stock price of one of the most valuable companies on the market, which has seen virtually no price appreciation over the past few months, Bloomberg reports.

In trading on October 13, Apple shares are up 1.4%.

At an event in New York focused on home devices, Apple unveiled the HomeView smart display for $299, which serves as a smart home hub, as well as updated versions of the HomePod mini speaker and the Apple TV 4K set-top box. In addition, the company showcased the Apple Home Collection line of accessories —cameras, a video doorbell, thermostats, and a smart lock—which it developed in collaboration with South Korea’s LG Electronics and France’s Schneider Electric, according to Bloomberg.

Later in October, the company plans to unveil a touchscreen MacBook Pro and an updated iPad mini, the agency reports. And on Friday, October 16, pre-orders will begin for the new foldable iPhone Duo, which represents the most significant design change to Apple’s most profitable device in its history. The iPhone Duo will start at $1,999.

“Companies of this size need blockbuster hits to significantly accelerate growth. I’m just not sure that anything we’re seeing is impressive enough to be a game-changer,” said Peter Andersen, chief investment officer at Andersen Capital Management. “Apple consistently delivers flawless products, but it’s hard to expect these new offerings to really take off,” he added. “Not only have major players been active in the smart home market for many years, but Apple is also launching these products at a time when consumers are under serious financial pressure,” Andersen noted. According to him, Apple is neither a value stock nor a growth stock. “Given the current P/E ratio, it’s doubtful that we can expect significant further growth in the stock price from these levels,” he said.

Apple shares are trading at a price-to-earnings ratio of 36 based on projected earnings for the next 12 months—the highest level since 2007 and significantly above the 10-year average (24). Apple ranks among the 50 most expensive stocks in the S&P 500 index, which as a whole trades at a multiple of 19, notes Bloomberg.

During trading on October 13, the company’s shares rose another 1.4%. In late July, the stock soared to a record high amid reports that the company was entering the smart home market and investors’ skepticism regarding the massive spending on artificial intelligence that Apple had previously avoided. However, Bloomberg notes that the stock price has remained virtually unchanged since then. Since the beginning of the year, Apple’s stock has risen by nearly 27%, making the company the leader among the “Magnificent Seven” tech giants.

This high valuation is partly due to Apple’s unique position in the AI stock market: the company is not exposed to the risks associated with massive spending on this technology, yet is considered one of the key beneficiaries of its development. In addition, the high valuation multiple reflects investors’ high expectations for the company’s new CEO, John Turnus, as well as hopes that he will be able to drive growth by updating and expanding the product lineup, according to Bloomberg.

This article is being updated

This article was AI-translated and verified by a human editor