Apple's highly anticipated iPhone 15 event scheduled for Tuesday is expected to have a positive impact on the stock prices for shareholders. Nevertheless, it may not be sufficient to completely recover the tech giant's stock market valuation, which experienced a significant drop of over 6%, equivalent to nearly $200 billion (£160 billion), over the course of the last week.
This prediction is attributed to Nigel Green, CEO and analyst at deVere Group, who suggests that investors should view the expected dip in stock prices as an attractive buying opportunity.
The decline in stock prices was triggered by reports indicating that Chinese government employees were prohibited from using iPhones. Despite the initial concern surrounding this issue, its actual impact has been overstated.
The stock price dip coincided with the release of a notable competitor in the Chinese market, the Huawei Mate 60. Additionally, Apple has faced three consecutive quarters of reduced sales, primarily due to prevailing macroeconomic conditions and challenges affecting consumption across various sectors.
These factors appear to be the primary drivers behind the recent stock price decrease, rather than the knee-jerk reaction to the ban, which only affects approximately 500,000 government employees' phones. Given the persistence of these underlying challenges in the short term, it may prove challenging for Apple to fully recover its stock market valuation through the event slated for Tuesday.
Nonetheless, Nigel Green believes that astute investors will seize the opportunity presented by the dip in stock price. Apple continues to boast robust fundamentals. It possesses substantial capital resources, unparalleled market dominance, and an impressive ability to adapt to changing circumstances, all of which are crucial strengths.
This adaptability is exemplified by Apple's CEO, Tim Cook, who has managed to maintain a relatively "independent" image from the U.S. government, a feat that many other major brands have struggled to achieve.
