Apple (AAPL), the world’s most iconic smartphone maker, wasted no time making waves after its much-anticipated launch event on Tuesday. The company unveiled its latest product lineup, headlined by the iPhone 17, in its annual showcase of cutting-edge devices. Pre-orders open tomorrow, with Apple urging customers to “get ready” for the next generation—sweetening the deal with savings of up to $1,100.
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Among the highlights are a new front camera designed for “next-level” selfies and a 48-megapixel fusion camera, according to Apple’s press release. While the company touted its signature “seamless upgrade experience” to excite loyal fans, analysts were less impressed. The stock has slid 6% in the past two days, falling from $241 to $226 per share.
First and foremost, market participants took issue with Apple’s lack of “meaningful” innovation in offering yet another $1,000+ device, only twelve months following the previous one. Does marginal improvement justify a new upgrade? It seems to depend on who you ask. Meanwhile, the market remains concerned that Apple isn’t doing enough to integrate AI and/or build a truly innovative device that brings back the “wow” factor. However, many Apple fans are pretty content with the firm’s new in-house N1 chip, signaling a decoupling from suppliers such as Broadcom (AVGO).
According to analysts, an in-house chip enables Apple to achieve operational independence, thereby securing greater control over final performance, integration decisions, and, perhaps most importantly in today’s austere times, cost efficiency. An $800 million tariff-related impact in the June quarter, with an expected increase to $1.1 billion in September, is a relatively small impact considering Apple’s ~$57 billion annual total spend on R&D, marketing, and administration. According to the iPhone maker, it has spent $46.24 billion in total operating expenses between September 2024 and June 2025.
Apple’s Glitz and Glamor Fails to Impress Analysts
This year, Apple’s launch event failed to please analysts, as immediately after the event, downgrades followed from Analyst Gil Luria of DA Davidson, who downgraded AAPL from a Buy to a Hold. In parallel, Helena Wang of Phillip Securities took a more bearish stance, downgrading Apple from a Hold to a Sell rating with a target price of $200. A further analyst, Jim Hin Kwong Au from DVS, reiterated a Hold rating without setting a definitive price target.
On a broad basis, AAPL stock is currently rated as a Moderate Buy, with 15 analysts currently bullish, 14 neutral, and two bearish. Apple’s average stock price target of $242.27 implies almost 6% upside potential over the next twelve months.
Falling Apple Bounces Back
If there was any doubt that Apple stock would bounce back from what has now become routine criticisms of the firm lacking innovation and slow development, this morning’s early trade dispelled it. Apple bulls were out in force, taking the stock higher in the morning session. As of writing, AAPL stock is trading $1.49 higher at ~$228 per share.
