Why Apple (AAPL) Shares Are Sliding Today

What Happened?

Shares of iPhone and iPad maker Apple (NASDAQ:AAPL) fell 3.3% in the afternoon session after its highly anticipated iPhone 17 launch event on September 9 left some investors and analysts underwhelmed. 

The stock's decline, which began after the event and continued into the next day, was attributed to several factors. Investors were likely unenthusiastic about the new devices, viewing them as offering only modest enhancements and incremental upgrades rather than revolutionary breakthroughs. This sentiment was compounded by a "sell-the-news" reaction, as many of the new features had been leaked beforehand, removing any element of surprise.

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What Is The Market Telling Us

Apple’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 2.6% on the news that a court ruling ordered competitor Google to share some of its search data. 

The ruling requires Google to provide rivals with access to certain search index and interaction data, a move that could significantly help Apple develop and enhance its own competitive AI chatbots and search tools. This legal development is seen as a major benefit for Apple's ambitions in the artificial intelligence space. Adding to the positive sentiment, analyst Ming-Chi Kuo reported that Apple has substantially increased its shipment forecast for the upcoming iPhone Fold, signaling strong confidence in the new foldable smartphone. Furthermore, reports indicate Apple is accelerating the use of automation and robotics throughout its supply chain to reduce labor dependency and ensure consistent product quality.

Apple is down 7.1% since the beginning of the year, and at $226.57 per share, it is trading 12.5% below its 52-week high of $259.02 from December 2024. Investors who bought $1,000 worth of Apple’s shares 5 years ago would now be looking at an investment worth $1,996.

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