Apple will unveil a product today, but Wall Street is already pretty sure what it is.
CEO Tim Cook delivers remarks before the start of an event at Apple headquarters.
Chief Executive Officer Tim Cook wrote, “Get ready to meet the newest member of the family,” in an X post last week. The post also said that there will be an Apple launch on Wednesday. (Note: The unveiling is set for 10:00 AM PT at Apple Park in Cupertino, California.)
That doesn’t help customers and investors to guess what is to come. But many already believe they know the answer: the newest iPhone SE, a less expensive, simpler version of the company’s popular smartphone.
Bloomberg reported earlier this month that Apple was planning to announce the release of the iPhone SE soon. Apple didn’t immediately respond to a Barron’s request for comment.
Unlike newer models of the iPhone, the SE still has a button on the front and a single camera lens on the back. The SE also uses an A15 Bionic chip, unlike the iPhone 16’s A18.
The iPhone SE was introduced in 2016 and updated in 2020 and 2022. Details that could be announced on Wednesday include the potential removal of the home button and the introduction of Apple’s artificial intelligence software, powered by an A18 chip. Bloomberg also reported that the SE could be Apple’s first device with an in-house cellular modem chip, replacing components from Qualcomm.
Qualcomm didn’t immediately respond to a request for comment, but it wouldn’t be shocking if Apple used its own cellular modem chip. Apple is expected to substitute 5G chips of its own making, and Qualcomm could lose most of Apple’s business in 2026.
UBS analyst David Vogt rates Apple at Neutral with a target of $236 for the stock price. He wrote in a note Sunday that “given supply chain checks and the required channel fill ahead of a launch, our estimates and most likely the company’s total revenue guide of ‘low to mid-single’ digits YoY growth for the March quarter already captures the launch.”
Essentially, Vogt says, the potential SE launch is already reflected in Wall Street’s financial forecasts.
Vogt also wrote that he expects the new base iPhone SE will be priced at $499, compared with the starting price of $429 for the existing model, due to the upgraded hardware and the possibility that it will include Apple Intelligence.
Apple stock closed flat on Tuesday at $244.47. The stock has declined 2.4% this year but is up 34% over the past 12 months.
Shares are currently trading at 32 times earnings expected over the next 12 months, which is above their five-year average of 26.8 times. The S&P 500 trades at a forward earnings multiple of 22.4 times.
With shares as expensive as they are, and Wall Street convinced it already knows what is coming on Wednesday, Apple will have to blow investors’ minds to boost the stock.