Why is Apple stock price falling after the iPhone 16 release date in India ?
Due to this highly hyped release of the iPhone 16, many investors thought of Apple’s stock rising, but it has actually been trending lower. The bear trend in the price of the stock has left the curiosity of the market and analysts on why the shares of Apple have not seen a boost after the release of not just the iPhone 16 but also other flagship products such as the Apple Series 10 smartwatch and the AirPods 4.
This is a drop of an insignificant 0.04% from the last session. Stocks were 1.23% down during pre-market trading the next day, but have since recovered a bit to stand at a negative 0.67%. The coming days will likely see this stock’s performance influenced by early sales figures for the new iPhone 16.
California, at Apple Park, was the setting for the launching ceremony on September 9, 2024, where Apple introduced various state-of-the-art technologies, an upgrade of the iPhone with AI not least among them. The iPhone 16, especially the Pro version fitted with the A18 Pro chip, featured serious improvements in photography, video shooting, and overall user experience. Simultaneously, Apple officially announced Apple Intelligence-a generative AI toolset slated to start rolling out this October-designed to make the iPhone experience even more impressive, infused with AI capabilities.
California, at Apple Park, was the setting for the launching ceremony on September 9, 2024, where Apple introduced various state-of-the-art technologies, an upgrade of the iPhone with AI not least among them. The iPhone 16 release date in India, especially the Pro version fitted with the A18 Pro chip, featured serious improvements in photography, video shooting, and overall user experience. Simultaneously, Apple officially announced Apple Intelligence-a generative AI toolset slated to start rolling out this October-designed to make the iPhone experience even more impressive, infused with AI capabilities.
Yet, despite all improvements, the reaction in the market is lukewarm, if not confused. One big reason could be increased competition Apple faces from Huawei, among others. The Chinese tech giant recently hogged headlines with a record number of pre-orders for its just-launched foldable phone. It shifted investor attention to Huawei’s resurgence, especially in China-a market that has always been very significant for Apple’s growth. Antonio Ernesto Di Giacomo, senior market analyst at XS.com, said that this recovery, after its mishaps, places Huawei in a very good position of strength, and it is especially competing hard in the smartphone arena, directly attacking Apple.
This partly can be attributed to the increasing global competition from which the Apple stock price has been on a decline. Success that Huawei is having in the Chinese market-a very key detour for Apple-is considered a major threat. While Apple still leads the way concerning technological innovation, the pressure is gradually piling up on how they can cement their positions in markets such as Asia, where their competitors are gradually gaining traction.
Going forward, Apple’s stock will most probably be pegged to the sales of the iPhone 16, after almost three years of stagnant sales of the smartphones, largely because consumers have been delaying upgrades. The iPhone 16 has the potential to rejuvenate demand. According to Hani Abuagla, Senior Market Analyst at XTB MENA, sales can increase by some 5% to lift the total number of units sold to about 235 million. However, much of this growth is likely to come through upgrades among clients by older iPhones, especially over the next few years.
It is worth noting, however, that Apple stock has been a rollercoaster all year: its shares fell 15% in the first few months of 2024 due to weaker sales and restrictions in China. Since touching a bottom in April, Apple’s stock has rocketed more than 40% to an all-time high of $236 in July. Even as the shares have fallen around 7% below that peak, there is hope that robust demand for the iPhone 16 will push the stock back toward previous highs.
It would take some quarters to see the result in Apple’s bottom line, said Abuagla, because of the iPhone 16. While the iPhone 16 has undoubtedly generated a lot of buzz, Apple’s stock has yet to reap any rewards from its launch. The company, in general, suffers from strong competition, especially in China, and only the unit sales of the iPhone 16 will tell if the stock of Apple can build upward momentum once more. Investors will be closely watching the statistics of sales and market dynamics for any indication of where the future trajectory of the price of Apple’s stock may be headed.