Apple has fallen 9% in the past two weeks ahead of its iPhone 14 launch. Is it a buy here?
Justin Sullivan/Getty Images News


After reaching a four-and-a-half-month high during mid-August, Apple (NASDAQ:AAPL) has suffered a setback in the last few weeks, dragged down by general concerns over the economy and interest rates. The late-summer swoon has come ahead of the highly anticipated launch of the iPhone 14.
Can the new product cycle restart AAPL's upward momentum and make the tech giant a buying opportunity?
Preparing for the iPhone 14
Apple (AAPL) is expected to release the latest iteration of its popular iPhone product next week, with the launch expected to come on Sept. 7. The new product cycle is expected to include new Apple Watch versions as well.
Analysts view the launch as a key potential catalyst for the stock. Influential Wedbush analyst Dan Ives called the event a "pivotal moment," noting that the initial order of 90M iPhone 14 units has stayed firm, despite looming concerns about the global economy.
Meanwhile, Bank of America called the iPhone 14 rollout a "key focus" for investors, spotlighting the importance of pricing during the current age of high inflation. "If Apple were to raise pro-model prices by $50, we [estimate] a $0.20 EPS tailwind," Analyst Wamsi Mohan wrote in a note to clients.
Ahead of the launch, AAPL has experienced a downdraft in its stock price. Earlier in the summer, the tech giant staged a notable recovery after reaching a 52-week low in June. This rebound petered out in mid-August with shares falling about 9% over the past two weeks.
AAPL held up well during the first three months of the year, with the stock showing a gain for 2022 as recently as early April. However, the stock plunged during the next two and a half months, eventually reaching a 52-week low of $129.04 by mid-June.
At that point, buyers stepped in, driving shares higher over the next two months. AAPL reached a closing mark of $174.55 on Aug. 17, its highest finish since early April. The stock also came within 1% of turning positive for 2022.
Recently, though, shares have suffered a setback. Caught between concerns about inflation and the possibility that rising interest rates will spark a recession, AAPL fell in eight of the last 10 sessions heading into Thursday's action. The stock is also down in midday trading on Thursday.
Is AAPL a Buy?
Wall Street analysts generally have a bullish view of Apple (AAPL). Of the 45 analysts surveyed by Seeking Alpha, 26 have a Strong Buy rating and nine have issued Buy opinions. All told, more than three-quarters of analysts have an upbeat outlook.
There are some Apple skeptics on Wall Street. Eight analysts have labeled the stock as a Hold, while two experts have issued Sell ratings.
Seeking Alpha's Quant Ratings lean more towards the cautious camp, with the system for grading quantitative measures marking the stock as a Hold. AAPL gets an A+ for profitability and a B+ for momentum. However, these grades are offset by an F for valuation and a D+ for growth.

For more on AAPL's prospects, Seeking Alpha contributor Nick Cox has an upbeat outlook, saying China and healthcare products will drive future growth. Meanwhile, fellow SA contributor Daniel SchÃ¶nberger takes a more cautious stance, asking if Apple investors are "blind and naive."