In two days, Apple’s market value dropped by over $112 billion sparking a backlash from both investors and buyers.
The launch was largely followed by a sell-off reaction from investors who were previously overwhelmed by the new product lineup.
However, the company's shares fell 1.5% immediately after the September 9 products unveil, they then plunged 3.23% the very next day to close at $226.79.
Analysts say that reaction reflects more than routine profit-taking, as it highlights deep concerns about Apple's innovation strategy, its profit margins and its place in the AI race.
Considering the incremental updates, Wall Street had been looking for a disruptive upgrade cycle. Instead, the iPhone 17 lineup delivered only slimmer designs and modest hardware tweaks.
Investors were hoping for more disruptive innovations and new models featuring a wide range of distinct updates.
The decision by Apple to delay its major Siri overhaul until 2026 was a significant point of disappointment for investors and a key factor in the stock’s recent decline.
Wall Street had been betting on AI to fuel growth, but the postponement of key features left Apple trailing rivals like Google and Samsung in the artificial intelligence race.
Apple’s stocks has faced a significant decline this year, with a 6.4% drop even before the recent iPhone 17 launch.
Microsoft and Nvidia have posted double digit gains fueled by their leadership in the AI space.
Analysts are increasingly vocal in their concerns that Apple risks ceding its innovative edge if it fails to close the AI gap quickly.
DA Davidson’s analysis sums up the situation: "Until Apple can redefine its products, growth will remain constrained."
The company that once redefined entire product categories is still under pressure to prove it still can.