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Markets Attempt Turnaround as Apple Holds "Far Out" iPhone 14 Event

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Stocks were higher in the morning hours on Wednesday, as the major indices attempt to find support following a swift decline over the past several weeks. The Nasdaq is looking to break a seven-day losing streak, which marks the longest such streak dating back to November 2016. Apple (AAPL - Free Report) stock was marginally higher ahead of its highly anticipated "Far Out" iPhone 14 launch event. The company’s annual September keynote occasion has become a mainstay for Apple followers over the years.

The event will be hosted at Apple’s Cupertino, California headquarters and will be livestreamed via Apple’s website and social media presence. The invitation for this year’s gathering featured a night sky with a constellation of stars surrounding the Apple logo, in what appears to be a play on long-distance, nighttime photography. The move has garnered speculation that Apple’s release of a new set of iPhones will support major camera upgrades. Of course, Apple likes to maintain a veil of secrecy and has kept details surrounding the release hush-hush.

The rumors swirling around the event note that Apple is expected to debut four new iPhone models, with this most recent release dubbed the iPhone 14. It’s likely that AAPL will discontinue the “mini” model with had a 4.7-inch screen, and will now offer the cellular devices at two sizes – in 6.1-inch and 6.7-inch versions. Each would come in a standard model along with a pricier “Pro” model that sports enhanced capabilities.

It's widely expected that Apple will unveil a new major update to the Apple Watch on Wednesday as well. A new “Pro” model may be introduced at the event that includes a larger screen and sturdier finish. It’s rumored that Apple is also considering a body temperature sensor in the new devices, which could assist with sleep tracking and fertility.

And as it has done in the past, Apple will likely delve deeper into the recent iOS 16 update, the iPhone’s software which the company has been testing over the past several months. But don’t expect anything for the iPad and Mac lines, as Apple typically reserves updates for these products at a separate event later in the year.

AAPL is currently a Zacks Rank #3 (Hold). The tech giant has built an impressive earnings track record, having not missed on estimates in the last several years. Over the last four quarters, AAPL has averaged a 5.67% earnings beat. Shares have fallen about 13% since the beginning of the year.

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Image Source: Zacks Investment Research

In addition to the sales generated from the devices mentioned above, Apple’s business contains a Services portfolio that includes revenues from cloud services, the App Store, Apple Music, AppleCare, Apple Pay, and other licensing services that have become a major cash cow. For the current fiscal year, AAPL is expected to show earnings growth of 8.73% to $6.10/share on revenues of $392.19 billion.

Zacks Investment Research
Image Source: Zacks Investment Research

Make sure to keep an eye on the stock’s reaction as the event is scheduled to go live at 1 p.m. EST.

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