Apple stock rises 18% ahead of Sept. 9 event: Is it still a buy?

Apple stock is up 18% before the Sept. 9 event. Here’s what the iPhone 18 Pro, foldable iPhone, sales, risks and valuation mean for investors.

Apple stock has gained 18% so far this year, putting the company ahead of major tech peers such as Microsoft and Alphabet. With Apple's Sept. 9 product event just days away, investors are now asking whether the stock still has room to climb or whether the recent rally has already priced in the good news.

Apple stock rises 18% ahead of the Sept. 9 event. (REUTERS)

The Sept. 9 event could be one of Apple's biggest product moments in years. Apple is expected to unveil the iPhone 18 Pro and iPhone 18 Pro Max, along with new Apple Watch models. Zacks said the event will also be the first major product launch under CEO John Ternus, who took over from Tim Cook on Sept. 1 after Cook led Apple for nearly 15 years.

iPhone 18 Pro: What’s coming

The iPhone 18 Pro models are expected to use Apple's new A20 Pro chip. The chip is reportedly being built using a 2-nanometer manufacturing process, which could improve performance and power efficiency. The overall design is expected to remain similar to last year's iPhone 17 Pro, although the Pro Max could become slightly larger and heavier to accommodate a bigger battery.

The biggest surprise could be Apple's first foldable iPhone. The device is reportedly expected to be called the iPhone Ultra and could fold like a book. The phone may have a 5.5-inch display when closed and a 7.6-inch display when opened.

Apple’s foldable iPhone

A foldable iPhone would mark a major design change for Apple. It would also put Apple directly against companies such as Samsung and Google, which already sell foldable smartphones. It is expected that the device will come with a high price tag, although the exact pricing was not provided.

Apple iPhone sales

Apple's business is already showing strong growth before the new products arrive. In the June quarter, Apple's total revenue rose 16% year over year to $109.4 billion, while iPhone revenue jumped 22% to $54.3 billion, according to Zacks.

The iPhone remains Apple's biggest revenue driver. The June-quarter performance suggests demand for Apple's smartphones remains strong, with the iPhone 17 lineup helping drive growth. Apple expects iPhone revenue growth in the mid-teens in the September quarter.

Apple is also expecting overall revenue to grow strongly in the September quarter. Management has guided for 9% to 11% year-over-year revenue growth, according to Zacks. This indicates that Apple does not currently see weak customer demand as its biggest problem.

Apple Services growth

Apple's Services business is another major reason investors remain bullish. The company has built a huge ecosystem of active devices, giving it a large customer base for services such as subscriptions and other digital offerings. According to 24/7 Wall St, Apple had more than 2.5 billion active devices as of the first quarter of fiscal 2026.

Services are also highly profitable for Apple. Services revenue reached $30.74 billion in the third quarter of fiscal 2026, while the segment had a 75.6% gross margin. This gives Apple a business with much higher margins than its hardware operations.

Apple stock risks

Apple continues to return huge amounts of cash to shareholders. The company spent $62.09 billion on stock buybacks during the nine months through June 27, 2026. But Apple is facing a serious cost problem: memory prices. Apple's CFO Kevan Parekh said memory costs were responsible for more than 100% of the sequential decline in gross margin heading into the September quarter, excluding tariff refunds, according to 24/7 Wall St.

Apple's supply chain is another concern. The company has warned that supply constraints could affect the availability of iPhones, Macs and iPads, according to Zacks. Higher costs are already expected to hit Apple's margins. Apple's June-quarter gross margin was 50.1%, helped partly by tariff refunds, but management expects gross margin to fall to 47%-48% in the fiscal fourth quarter.

Apple stock valuation

Apple has shown some pricing power despite rising costs. The company raised prices on some iPad and Mac models, while still expecting September-quarter revenue to increase 9%-11%. China is another risk investors need to watch. Apple has significant exposure to Greater China, while tariffs and global supply-chain issues could affect both costs and demand, according to 24/7 Wall St.

The biggest problem for new investors may be Apple's valuation. Apple is trading at about 33.6 times earnings, according to Zacks. That valuation is much higher than some of Apple's mega-cap rivals. Alphabet trades at about 20.4 times earnings, while Microsoft trades at around 24.7 times earnings.

This means investors are already paying a premium for Apple. The stock needs strong earnings growth and successful new products to justify that higher valuation. A disappointing iPhone cycle, weaker Services growth or continued cost pressure could make the premium harder to defend.

Is Apple stock still a buy?

But the stock is no longer cheap. With Apple trading at roughly 33.6 times earnings, investors are paying significantly more than they are for Microsoft or Alphabet. That makes the Sept. 9 event important because investors will be watching not just for new products, but for signs of future growth.

The foldable iPhone could become the biggest catalyst. If Apple launches a successful foldable device, it could open a major new product category and give investors another reason to remain bullish.

Apple enters the Sept. 9 event with a strong business, rising iPhone sales and an 18% year-to-date stock gain. The key question is no longer whether Apple is a strong company — it is whether the expected growth and new products are strong enough to justify the stock's premium valuation.