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Low expectations for Apple event is good for stock, shareholder says

Lower expectations for Apple event: Ware

Expectations for Apple's latest product launch are pretty low, but that's a good thing for Apple stock, shareholder Jason Ware said Tuesday.

The tech giant is expected to unveil its latest hardware on Wednesday in San Francisco.

Ware said while there was a lot of excitement around the iPhone 6 announcement, the hurdle is lower this time because people feel like they know what to expect from Apple.

"With lower expectations, if there's anything that comes out that might excite folks or get people to go out and upgrade at a faster rate than maybe the Street's expecting … that's good news," the chief investment officer for Albion Financial said in an interview with CNBC's "Power Lunch."

Andrew Kelly | Reuters

Apple is expected to unveil its iPhone 7 at the event. Analysts are anticipating a faster processor, a pressure-sensitive home button, improved water resistance and a higher quality camera with a dual lens. However, the most controversial change may be the expected removal of the headphone jack.

However, Ware doesn't think customers will leave their iPhones behind if the wired headset is replaced with a wireless one.

"There's a cult brand equity that they have," he explained. "I don't think you're going to see too many people shifting away from the ecosystem that Apple certainly provides their customer base just because they lose the jack."

Instead, he believes there will be other things that excite them about the phone like the expected upgraded storage tiers, faster processing and upgraded camera.

And while there may not be a "dramatic" push of customers upgrading to an iPhone 7, "a healthy upgrade is enough to move the needle," Ware noted.

However, he thinks there is a risk to iPhone 7 sales — the iPhone 8.

"If that starts to look really, really attractive, there could be some delays from people saying, 'Well, why do 7 when I can wait for 8, because it's really going to be a sea change from what we see now,'" he said. "But we're probably not quite there yet in terms of visibility."