Apple stock dropped sharply after the company revealed its iPhone 17 series, with the market responding less enthusiastically than many expected. Investors sold shares, citing concerns over modest upgrades and an unclear AI strategy. According to Gulf News, Apple lost more than 112 billion dollars in market value in just two days. The stock slid about 1.5% immediately after the launch and another drop of roughly 3.23% followed the next day.
What Investors Found Underwhelming
At the event, Apple introduced the new iPhone 17 family, including an ultra-thin “iPhone Air,” updated Pro models, new Apple Watch versions, and refreshed AirPods with a live translation feature. However, many analysts argued these were improvements rather than revolutionary changes. The absence of strong AI breakthroughs, especially delayed overhauls to Siri, hurt confidence.
Other Contributing Factors
Tariff pressure also weighed heavily. Apple confirmed it would absorb more than 1 billion dollars in U.S. tariffs without raising device prices. While that may seem consumer-friendly, investors viewed it as a potential threat to profit margins. Additionally, leaks ahead of the launch had already set expectations high, which meant the actual reveal lacked surprise for many.
Market Impact and Analyst Response
Because of all this, Apple’s share price ended the day notably lower. While exact numbers varied by report, one widely cited source says Apple’s valuation, capital market cap, dropped by over 100 to 112 billion dollars over two days. Analysts such as those at D.A. Davidson downgraded the stock from “Buy” to “Neutral,” pointing to concerns about Apple’s competitive position and ability to sustain innovation at its current pace.
Some bullish analysts remain hopeful that new features, especially in wearables and the “iPhone Air,” could create a strong holiday season upgrade cycle, but many warn that Apple must show more than iterative improvements to stay ahead.
What’s Next
Investors will keep a close eye on Apple’s upcoming earnings reports to see how the iPhone 17 series performs in sales and whether the services and AI sides of its business can carry more weight. Meanwhile, market watchers expect Apple to accelerate its AI roadmap to avoid being left behind by rivals. For now, the big drop in value reminds everyone how high the bar is at Apple’s scale and how sensitive markets are to perceived innovation slack.
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