Apple takes the stage on September 9 for what is expected to be its largest product unveiling in recent years. This marks the first major event under John Ternus, who succeeded Tim Cook as Chief Executive last week. According to Josh Gilbert, Lead Market Analyst at etoro, the spotlight is intense, forcing him to address immediate challenges in hardware and artificial intelligence. The company plans to reveal its first foldable iPhone, a full rollout of Siri AI, and an expanded line of smart-home devices.
A Premium Test for the Foldable
Analysts suggest the foldable device is the primary item to watch. Launching a premium-priced foldable tests whether consumers will still pay a higher price for a genuinely new form factor. This matters significantly because the iPhone generates just over half of the company’s total revenue. In its last financial year, the device accounted for USD 210 billion of the USD 416 billion recorded by the firm. The success of this launch will directly test Apple’s ability to convince buyers that the new form factor justifies the increased cost.
Beyond the foldable, reports indicate Apple’s pipeline includes AirPods with cameras, smart glasses, a tabletop home robot, and a touchscreen MacBook. If Cook’s decade was defined by services, Ternus’s tenure appears focused heavily on devices. The strategy centers on bringing more Apple products into more rooms. This approach may explain why the board selected a hardware engineer to lead the company rather than an executive primarily associated with AI.
The shift toward hardware suggests a deliberate move to diversify revenue streams beyond software subscriptions. By prioritizing physical devices, the company aims to re-engage users who may have drifted toward competitors due to a lack of tangible innovation. This hardware-first stance contrasts sharply with the recent emphasis on service ecosystems.
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Siri’s Second Chance
The rollout of Siri AI will be the event’s other major focus. Investors are looking for signs that Apple can close the gap with competing AI platforms. The company is expected to deploy Siri AI at scale this month as a direct competitor to leading chatbots. The long-term ambition could involve charging for the service or generating revenue through third-party applications integrated into the platform.
This rollout will be closely watched because Siri has spent the past decade developing a reputation for not always doing what users ask. A key question is whether the upgraded assistant will launch with a subscription fee or remain free. If it is offered at no cost, Apple will initially have to absorb the significant expense of operating the service without a direct revenue stream.
Market Sentiment and Share Performance
Investors have not been impressed by Apple’s limited progress in AI over recent years. However, the company has been written off for arriving late to major technology trends many times before, and those calls have usually proven premature. Apple’s share-price performance around previous product launches provides a note of caution. In four of the last five September iPhone events, Apple shares declined during the two weeks leading up to the launch.
In three of those cases, the shares continued to fall afterwards. This year feels slightly different, with a new CEO and the prospect of a genuinely new product rather than another incremental upgrade. However, Apple shares have already rallied 21% this year and are trading at approximately 35 times forward earnings, leaving little room for disappointment. Investors will be hoping the event delivers enough substance to avoid another case of buying the rumour and selling the news.
