Whether you reside in America, Europe, Asia, Africa, or Australia, we’re aware that you devoted two hours of your time yesterday to watch Apple's latest presentation. Why? Because the whole world was watching, either due to the anticipation of purchasing a new iPhone or fascination with tech, or perhaps because you're an investor well aware of the impact these events have on the stock market. If you fall into the latter category, we have some unfortunate news to share. But first things first.
Every year, Apple's September iPhone launch is a significant event in the tech world, and this year’s event was no different. iPhone, which accounts for about half of all sales, was the main focus of the big tech product unveiling known as Wonderlust. While no one expected a completely new design, there were adjustments made to cameras, bezels, processors, and a transition from Apple's Lightning connector to the standardized USB-C type. To sum it up, those were the key updates. Oh, and it's worth noting that these improvements come with a price adjustment as well. The top-tier model, the iPhone 15 Pro Max, will now retail for $1,199. However, in an unexpected turn, Apple maintained the starting price for the new iPhone. That about covers it.
Tuesday's event, focused on the new iPhone 15 line-up and Series 9 Apple Watches, didn't deliver any major surprises to Wall Street. As usual, leading up to Apple's annual launch event, Apple stock experienced a 0.2% gain in pre-market trading on Tuesday, following a 0.7% increase on Monday. However, the good news pretty much ends there. Following the company's latest product reveal, Apple shares closed down 1.7% at $176.30 on Tuesday.
Frankly speaking, 2023 hasn't been an easy year for the company. Apple is grappling with weak demand for smartphones and, to make matters worse, China has banned central government officials from using iPhones due to security concerns. What a rollercoaster year it has been! Over the past month, the company's shares have depreciated by approximately 2%.
Nonetheless, the overall performance for the year remains positive, with Apple shares up by around 39%.
This situation isn't just about Apple; it has wider implications. Tech giants like Apple have a significant impact on the market. On Tuesday, the Nasdaq Composite index experienced a 1% drop as a tech downturn overshadowed an otherwise promising day. It wasn't just the debut of Apple's iPhone 15 that failed to ignite excitement; Oracle's quarterly update contributed to the lackluster mood as well (but that's a separate story).
