Apple’s Annual Product Event Is Almost Here. Expect the iPhone 17 and More.

Apple’s CEO, Tim Cook, in 2024. (JUSTIN SULLIVAN/Getty Images)

Apple will host its annual product event on Tuesday, Sept. 9 —and investors are looking for new features and capabilities that could spur customers to buy new devices as part of a larger upgrade cycle.

The iPhone accounts for roughly half of Apple’s revenue. As of now, expectations for iPhone sales remain modest. Wall Street analysts tracked by FactSet expect 232 million iPhones to be sold in the fiscal year ending in September 2026, up 2% from the 2025 fiscal year. They see iPhone sales reaching $220 billion in fiscal 2026, up 5%.

In a research note on Thursday, Morgan Stanley analyst Erik Woodring said Apple could modestly raise the pricing for some parts of the iPhone lineup. “What will matter most at next week’s iPhone launch event is pricing, a still under-appreciated growth tailwind,” he wrote.

The analyst said one way Apple could effectively raise prices is by eliminating smaller storage models.

Apple may decide to get rid of the 128-gigabyte storage model for the iPhone Pro, which would make the $100 higher-priced 256 gigabyte model at $1,099 the entry level iPhone 17 Pro model, he said.

He predicts Apple will announce a new iPhone 17 “Air” ultrathin model; iPhone 17, iPhone 17 Pro, and Phone 17 Pro Max phones models; new Apple Watch models; and AirPods Pro 3 wireless ear buds.

Woodring rates Apple as Overweight and has a price target of $240 a share.

Apple stock is down 4.3% this year, versus the 12% rise for the tech-heavy Nasdaq Composite index. Apple shares closed down less than 0.1% at $239.69 on Friday.

The festivities start at 1 p.m. Eastern Time on Tuesday.

Write to Tae Kim at tae.kim@barrons.com