JPMorgan has found a new driver for Apple stock. What should traders watch out for at the presentation?

The main event of Apple's annual presentation, which is scheduled for September 9, may be the debut of iPhone Air - a new thin model, according to analysts JPMorgan and Evercore. This smartphone, according to experts, can revitalize demand, expand the audience and strengthen the company's position in China. In addition, the market will closely monitor the prices of new devices and Apple's strategy in the field of artificial intelligence, where it is still lagging behind. The company's shares have lost more than 5% since the beginning of the year, but the upcoming presentation could be a chance for Apple to regain market confidence.

JPMorgan analyst Samik Chatterjee believes that the new iPhone Air that Apple will unveil at the launch event could be a key driver of the company's stock, Seeking Alpha reports. "The launch of the iPhone Air with a slimmer design has the potential to appeal to a wider audience than anticipated, even though the feature set will be closer to the base iPhone models rather than the Pro versions," Chatterjee said in a note cited by Seeking Alpha.

While initial supply chain orders for the iPhone Air are approximately 10-15 million units, "there remains room for surprises from better consumer response," the analyst suggested. He added that the iPhone Air's more affordable price could also boost its appeal in China, where competition with local brands is growing. He expects the Air's price to be in the $899-949 range.

Evercore analyst Amit Daryanani also believes the Air version "will help revitalize demand and drive new purchases," Barron's reports. "This is the most notable iPhone design change in years, and it could make the new smartphone the thinnest iPhone in history," Daryanani noted. According to the analyst, this could also be the beginning of a series of major design changes to Apple's smartphones for at least the next couple of years. For example, Apple could release the first foldable iPhone as early as next year, the analyst suggested. That would be an important step for the company, which lags behind Android competitors in this segment, MarketWatch notes.

In trading on September 4, Apple shares slipped by 0.7% - the price fell to $236.7. Since the beginning of the year, the market value of the company in the minus by more than 5%. By comparison, the main U.S. stock index S&P 500, on the contrary, added about 10%.

Wall Street's consensus target price for Apple's stock matches its current price, according to MarketWatch. About 60% of analysts who have assigned ratings to the company's shares advise investors to buy them (Buy and Overweight ratings). Another third takes a neutral position with a Hold rating, and the rest suggest selling (Underweight and Sell).

Apple's annual presentation will take place on September 9. Usually at this event, the company unveils new products for the year ahead. This year, the iPhone 17 lineup is expected to debut. Apple is expected to keep investors interested with a new product cycle and show progress on AI, MarketWatch notes.

The publication named three key factors that investors should pay attention to during the upcoming event. Among them are the new products themselves, including the debut of the iPhone Air, the impact of duties and the company's AI strategy.

The publication explains that if earlier import duties were a serious risk for the iPhone manufacturer, but now the pressure has eased. Apple may not only not raise prices, but on the contrary, reduce them to stimulate sales in China, JPMorgan noted: there smartphones cheaper than 6,000 yuan (about $840) are subject to a 15% subsidy. The focus on pricing is especially important amid recent data that shows the volatility of the Chinese market. Apple's share of direct sales in China fell from 18.4% in May to 12.1% in July due to the end of aggressive promotions, said UBS analyst David Vogt.

Morgan Stanley, on the contrary, expects Apple to raise iPhone prices for the first time in seven years. For example, the same iPhone 17 Air will cost $100 more expensive than last year's iPhone 16 Plus, which he is likely to replace, analysts suggested. At the same time, the increase in cost is unlikely to hurt demand, Morgan Stanley believes.

In addition, investors are also keeping a close eye on Apple's AI strategy, as previous Apple Intelligence announcements have failed to impress the market, MarketWatch emphasizes. No major updates are expected next week, but market participants are waiting for hints about further plans. Especially amid reports of talks with Alphabet on Gemini and internal discussions about buying AI startups such as Perplexity or Mistral. Further examples of AI integration - including improved app experience and Siri - could be an important signal for Apple's strategy, MarketWatch added, citing BofA analyst Vamsi Mohan.

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