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Headlines
- Apple's introduction of Apple Intelligence was the highlight of its iPhone 16 event, but the delayed software update for US English users may have affected stock movement.
- Despite the iPhone 16 launch on September 20, the stock showed minimal movement, with a slight decrease of 0.9% during the event and a modest increase of less than 1% over the following three days.
- Historical data suggests that Apple's stock typically experiences a stronger performance a month or two after an iPhone launch, as seen with previous models.
Apple's (NASDAQ:AAPL)iPhone 16 event on Monday showcased the company's latest innovation, Apple Intelligence. This new feature, however, faces a delay in its software update for US English users, which may have influenced the stock's performance. The iPhone 16 is scheduled for release on September 20, but the accompanying software update won't be available until October.
The stock's reaction to the event was relatively muted, with shares declining by approximately 0.9% during the event and showing a minimal increase of less than 1% over the subsequent three days. This subdued movement is not unusual, according to Goldman Sachs senior equity research analyst Michael Ng, who noted that Apple's stock performance during iPhone launch days often aligns with historical patterns.
Ng highlighted that Apple's stock typically shows underperformance on launch days compared to the S&P 500. On Monday, this underperformance was slightly more pronounced, matching historical trends. Historical data from Bank of America indicates that Apple’s stock usually improves a month or two after an iPhone release. For instance, the iPhone 15 saw a 1% drop a day after its announcement but rose by 6% within 60 days. Similarly, the iPhone 11 led to a 3% increase the day after its reveal, followed by a 20% gain over the next two months.
Ng emphasized that the potential for growth in Apple’s normalized earnings power could become more apparent as users begin to upgrade their devices. This suggests that while immediate stock movements might be subdued, longer-term performance could show positive trends.
