iPhone 17 launch wipes $112b off Apple's market value amid investor backlash
Instead of generating excitement, the unveiling on 9 September sparked disappointment, with shares dropping 1.5% on launch day and another 3.23% the following day, closing at $226.79
Apple's much-anticipated iPhone 17 series launch has backfired, triggering sharp investor backlash and wiping more than $112 billion off the company's market value in just two days.
Instead of generating excitement, the unveiling on 9 September sparked disappointment, with shares dropping 1.5% on launch day and another 3.23% the following day, closing at $226.79, reports the Gulf News.
Analysts say the fall reflects mounting doubts about Apple's innovation pipeline, profit outlook, and lagging position in the global race for artificial intelligence (AI).
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Why investors are worried
Lack of breakthroughs: The iPhone 17 brought only a slimmer design and minor hardware tweaks, far from the groundbreaking upgrades investors expected.
AI delays: A revamped Siri with advanced AI features has been postponed until 2026, leaving Apple trailing Google and Samsung.
Leaks spoiled the surprise: Key features, such as the ultra-thin iPhone Air, were widely leaked before launch.
Profit squeeze: Apple announced it would absorb over $1 billion in tariffs instead of raising prices, raising concerns about profit margins.
Weak demand signals: Low trading volumes on launch day suggested fragile investor confidence.
The sell-off wiped out an amount nearly equal to Nike's total market capitalization. Even the initial 1.5% decline translated into losses of more than $52.8 billion.
Several financial institutions, including Phillip Securities and DA Davidson, have since downgraded Apple's stock, saying the iPhone 17 does not offer enough innovation to encourage mass upgrades.
"Apple is not truly innovating… they're still behind in AI, and the market is skeptical," said Thomas Hayes of Great Hill Capital.
Apple CEO Tim Cook unveiled the ultra-thin iPhone Air, marketed as the slimmest smartphone yet—thinner than Samsung's Galaxy S25 Edge. The device features a new A19 Pro chip, titanium frame, and stronger ceramic shield glass.
While fans and YouTubers praised the design, Wall Street remained unimpressed, especially as the model ships with just one camera and no major AI enhancements.
The setback comes as Apple's stock had already fallen 6.4% earlier this year, while rivals like Microsoft and Nvidia surged on AI momentum. Analysts warn that unless Apple closes its AI gap soon, it risks losing its reputation as the industry's innovation leader.
For consumers, the iPhone 17 may still be a holiday-season favourite. But for investors, the message is clear: Apple faces mounting pressure to prove it can still shape the future of technology.
