Illustration by Elias Stein
Apple
is expected to showcase a new generation of iPhones at its Cupertino, Calif. headquarters on Tuesday—and interest has rarely been lower.
Ahead of Apple’s “special event,” search data from Google Trends reflects little excitement about the new phone. Google searches for the term “iPhone” peaked in September 2012, when the iPhone 5 was unveiled. Though interest usually spikes around product announcements in September, the peaks have steadily declined since 2016.
Consumers aren’t the only one’s feeling lukewarm about the iPhone 11—fund managers are too, according to Bank of America Merrill Lynch. In August, Apple’s position in active stock funds dropped to its lowest level since January 2016, the firm notes.
But this year’s batch of Phones is likely something of a placeholder, with a 5G model expected to launch next year. The 5G phone could supercharge the next upgrade cycle, much as larger iPhones did in September 2014.
Apple’s current flagship iPhone XS starts at $999, but a September survey by PiperJaffray showed that 23% of iPhone owners would pay $1,200 to upgrade to a 5G model. The demand is impressive, PiperJaffray notes, given that consumers are just beginning to learn 5G’s benefits, including faster speeds and more reliable service in densely populated areas.
If the 5G iPhone commands a premium price, Wall Street may be underestimating Apple’s future revenue. This week’s reveal may be a snoozer, but don’t sleep through 2020’s.
Next Week
Monday 9/9
Ctrip.com International
reports second-quarter earnings.
The Federal Reserve reports consumer credit data for July. At the end of June, total outstanding consumer credit topped $4.1 trillion for the first time.
Tuesday 9/10
GameStop
,
HD Supply Holdings
, and Zscaler report quarterly results.
The National Federation of Independent Business releases its Small Business Optimism Index for August. Economists forecast a 103.5 reading, down from July’s 104.7.
The Bureau of Labor Statistics releases its Job Openings and Labor Turnover Summary for July. Consensus estimates are that there were 7.4 million open jobs on the last business day of July, up from 7.3 million in June.
Apple hosts a product launch event in Cupertino, Calif. The company is expected to unveil three iPhone 11
models.
Wednesday 9/11
The BLS releases the producer price index for August. Expectations are for a 0.1% rise after a 0.2% gain in July. The core PPI, which excludes volatile food and energy, is seen increasing 0.2% after declining 0.1% in July.
Thursday 9/12
Broadcom
,
Kroger
, and
Oracle
hold conference calls to discuss earnings.
The European Central Bank announces its monetary-policy decision. The market expects the ECB to cut its deposit rate from the current negative 0.4%. Futures markets predict a 50% chance of a 10-basis-point reduction, to negative 0.5%, and a 50% chance of a 20-bps cut, to negative 0.6%.
The Treasury Department releases its monthly budget statement for August. Consensus estimates are for a $161 billion deficit, an increase from July’s shortfall of $120 billion. The Congressional Budget Office recently projected a $960 billion deficit for fiscal 2019, which ends in September. That would be the largest since 2012.
H&R Block
and Kraft Heinz hold their annual meetings of shareholders in Kansas City, Mo., and Pittsburgh, respectively.
Mastercard and
U.S. Bancorp
host investor days.
Friday 9/13
The Census Bureau reports retail sales for August. Economists forecast
a 0.1% gain, after a 0.7% jump in July—the largest rise since March.
The University of Michigan reports its Consumer Sentiment Index for September. Expectations are for a rebound to a 91 reading from August’s 89.8 figure. The August data was the weakest since late 2016.
Write to Connor Smith at [email protected]
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