apple Shares Dip Following iPhone Launch, analysts Cite price Increases and Historical Trends
New york – Apple shares fell following the debut of its latest iPhone model, as Wall Street reacted with skepticism to price increases and a lack of important innovation. Despite a 38% rebound as April lows, Apple’s stock is down more than 5% year-to-date, underperforming the Nasdaq 100’s 13% gain.
Analysts point to the elimination of the 128 GB storage option, with the 256 GB model now serving as the base configuration – a US $100 price increase – as a key factor. The introduction of a new, lighter iPhone model priced at US $999 “could also contribute to an increase in the average sale price,” according to analysts. Historically, apple’s stock has often experienced declines in the days immediately following new iPhone presentations.
The new iPhone, featuring improved camera technology and materials, “failed to generate enthusiasm” among investors. Despite a moderately favorable analyst consensus – 56.9% recommend buying the stock, 37.9% suggest holding, and only 5.2% advise selling – the 12-month target price of US$237.61 offers a limited potential return of just 1.2% above the current price. Over the past twelve months, the stock has delivered a return of approximately 6.7%.
Apple currently trades at a valuation near 30 times projected earnings, making it one of the most expensive technology companies in the S&P 500. The information was updated as of 4:39 PM ET with market closure data.
