Will Apple Inc (AAPL)’s iPhone 7 Make Investors Cheer or Jeer?

Apple Inc. (NASDAQ:AAPL)

Apple Inc.  will unveil the iPhone 7 on September 7 in San Francisco. The U.S. tech giant will also use the event to launch the updated Apple Watch and announce a release date for its latest operating system, iOS 10. Investors are very interested to see what changes the company has made in new iPhone and Apple Watch. Innovation at the firm has been questioned lately and stockholders are hoping to see more than common upgrades in the iPhone 7.

Apple saw a decline in iPhone sales during the third quarter, selling 40.4 million units compared to 47.5 million units sold in the same quarter last year. The iPhone revenue fell 23.6% year over year during the last quarter. The Wall Street is curious to know whether the iPhone 7 and Apple Watch will excite users.

Apple Inc. (NASDAQ:AAPL)

iPhone 7 Won’t Be Revolutionary

Apple Inc.  is set to reveal two versions of the iPhone next week: the iPhone 7 and iPhone 7 Plus. Reports suggested that the new smartphones will come with 4.7-inch and 5.5-inch screen sizes. Mobipicker website said in a report that the company will launch three iPhone 7 models, including iPhone 7, iPhone 7 Plus, and iPhone 7 Pro.

The company wants to impress users with a dual camera system. The iPhone will have two cameras to produce brighter photos. According to the reports, the new camera system will improve the quality of photos taken in low-light environments.

Rumors also suggested that the iPhone 7 will have a pressure-sensitive button. Users will be get feedback via a vibrating haptic sensation rather than a true physical click, according to the reports.

The most important change that the company reportedly has made is the death of a 3.5 mm headphone jack on new iPhones. The charging port will be used to connect the headphones. Apple Insider reported that the company patented a new slimmer headphone jack technology dubbed as D Jack, having a diameter of just 2mm. Reports also suggested that the company is developing a new set of wireless Lightning EarPods.

What Investors Should Expect?

A report published in Motley Fool suggests that investor expectations are low for the iPhone 7. In a note, Piper Jaffray analyst Gene Munster pointed out that low expectations also presents a buying opportunity. The analyst believes that low expectations means there’s upside potential for the stock if the refreshed iPhone 7 attracts more users than expected. He believes that “any unexpected announcements or features could help propel shares of AAPL higher.”

The iPhone 7 is expected to be closely resemble the iPhone 6 so analysts predict that it won’t be “revolutionary,” Los Angeles Times reported.

“The big question for the industry is whether this upgrade cycle will offer enough features and functionality to get consumers to go to the next version of the iPhone,” said Daniel Ives, senior vice president of corporate development at Synchronoss Technologies. “Consumers used to upgrade their smartphones every 2.5 years, but now we’re seeing an elongated upgrade cycle.”

Shares of Apple Inc.  have surged nearly 7% during the past six months. However, the stock has dropped nearly 5% during the past 12 months.

Will Apple Watch Excite Buyers?

Alongside the iPhone 7, the iPhone maker is expected to unveil the next generation of its popular wrist watch.

Reports suggest that the Apple Watch 2 will boast a new appearance, be less dependent on the iPhone, and crammed with a number of new, distinct and useful features. The Watch is likely to get a GPS system. Still, it’s not clear whether the Watch will get a camera.

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