Apple stock price closed flat on the day it introduced the highly anticipated iPhone 16, along with other major products such as the Apple Watch Series 10 and AirPods 4. Apple closed at $ 220.91, down by 0.04% from the previous close on Monday and was quoting almost 1.23% lower in the early pre-market session on Tuesday. Since then, the price has recovered and is down 0.67%. How the Apple stock opens on Tuesday remains to be seen.
The Apple event on September 9, 2024, showcased innovations at Apple Park in California, including the iPhone 16, which featured AI improvements. The Pro versions, featuring the A18 Pro chip, improved photo organization and video recording. Apple also announced Apple Intelligence, a generative AI software set to launch in October, aiming to transform the iPhone experience with AI-driven features.
Despite new launches, the market seems to be confused. “The market’s attention shifted towards Huawei, which announced a record number of pre-orders for its new foldable phone. This highlights the growing competition between the two brands, especially in the Chinese market.
Huawei has recovered from recent setbacks and is repositioning itself as a key competitor in the smartphone industry, posing a significant challenge for Apple in one of its most important markets,” says Antonio Ernesto Di Giacomo, Senior Market Analyst at XS.com
Apple’s stock drop reflects the company’s growing competition in the global market, with Huawei’s success in China posing a significant threat. Despite its technological leadership, Apple must strengthen its strategy to maintain its position in key Asian markets, where competition is intensifying.
Meanwhile, any rise in Apple stock price from the current price will depend a lot on the unit-sales of iPhone 16. “The new iPhone 16 has the potential to boost stagnant smartphone demand for Apple after nearly three years of near-flat unit sales, largely driven by the need to upgrade devices sold 3 and 4 years ago.
Sales may increase by 5% to about 235 million. The number of older devices will be the biggest driver of sales as Apple Intelligence’s AI toolset will have a bigger impact in 2026,” says Hani Abuagla, Senior Market Analyst at XTB MENA.
How can the launch of the iPhone 16 affect Apple’s stock? Abuagla says, “The world’s most valuable company has been in a state of flux over the past few months. In particular, in the first few months of the year it lost 15%, dragged down by weak sales and restrictions in China.
But since the lows in April, Apple has soared more than 40% to reach a new all-time high in July at $236 per share. Apple shares are now trading 7% below these levels, but demand for orders in the days following the presentation could push them back to highs. Even so, we will probably have to wait for the presentations in the coming quarters to see the impact of the iPhone 16 on sales.”