Apple shares fell 3.2% to close at $226.84 on Tuesday, September 9, after the company’s “Awe Dropping” product event. The decline followed muted reactions to the iPhone 17 lineup, Apple Watch Series 11, and AirPods Pro 3.
Historically, Apple’s stock dips around major iPhone launches, averaging about 2%. This year’s pullback was slightly larger.
The highlight of the event was the iPhone 17 lineup, including the ultra-thin iPhone Air priced at $999 and the iPhone 17 Pro starting at $1,099. The iPhone 17 Pro Max now offers up to 2TB of storage, appealing to high-end users.
AirPods Pro 3 received real-time translation and heart-rate monitoring, while the Apple Watch Series 11 introduced hypertension tracking and sleep scoring. Importantly, Apple held pricing steady, protecting margins despite an estimated $1.1 billion quarterly tariff exposure.
Analysts described the upgrades as “incremental but strategic,” setting up Apple for a longer product cycle reset rather than a single breakout device.
However, Apple continues to trail rivals in AI headlines, yet its approach prioritizes privacy and integration within its ecosystem. Reports suggest Apple is negotiating with Google to integrate Gemini AI into Siri in 2026, potentially strengthening its AI presence.
Over the past year, Apple posted $408.6 billion in revenue with a 24.3% profit margin, generating $99.2 billion in net income. In India, sales rose 13% to nearly $9 billion in FY2025, helping offset flat demand in North America.
China also showed signs of recovery after quarters of weakness, with stronger iPhone demand boosted by targeted promotions. Analysts highlight that 315 million iPhone users have not upgraded in four years, a base that could fuel the iPhone 17 cycle.
While shares slipped after the event, some analysts argue the reaction reflects short-term skepticism rather than long-term weakness.
Still, the muted response shows investors want more than ecosystem refinements. The coming months will test whether the iPhone 17 cycle triggers the long-awaited upgrade wave.
