Apple Shares Plunge After iPhone 17 Launch

Apple’s stock experienced a mid-day reversal following its product launch event earlier today, with shares dipping as much as 1.79% after an initial surge. The market reaction follows the unveiling of the iPhone 17 series, which includes the standard iPhone 17, the new iPhone Air, the iPhone 17 Pro, and the top-tier iPhone 17 Pro Max.

Pricing for the new lineup starts at ¥5999 for the iPhone 17, ¥7999 for the iPhone Air, ¥8999 for the iPhone 17 Pro, and ¥9999 for the iPhone 17 Pro Max. The iPhone 17 Pro Max, in its highest configuration, reaches a record price point of ¥17999, making it the most expensive iPhone to date.

A key highlight of the event was the introduction of the iPhone Air, touted as Apple’s slimmest device yet, measuring a mere 5.6mm in thickness. However, the iPhone Air notably features a throttled version of the A19 Pro chip and exclusively supports eSIM functionality, a design decision that could impact its appeal in certain markets where physical SIM cards remain prevalent. This strategic choice to use a slightly less powerful chip and focus solely on eSIM may be a play to differentiate the Air and target a specific consumer base prioritizing sleek design and convenience, albeit with potential trade-offs in performance parity with the higher-end models.

Pre-orders for the new iPhone series will commence on September 12th at 8 PM, with official sales beginning on September 19th. Analysts are closely watching consumer response to the higher price points and the features of the new iPhone Air to gauge the overall success of the product launch. The market’s initial downturn suggests investors are weighing the potential impact of the pricing strategy and the iPhone Air’s unique features on Apple’s future revenue streams. Furthermore, the reliance on eSIM technology is a bold move that could either solidify Apple’s technological leadership or face resistance in markets with less developed eSIM infrastructure. The coming weeks will provide critical data on consumer adoption and the long-term viability of these strategic decisions.