Why are buyers, investors unhappy with Apple’s iPhone 17 launch?

Dubai: Apple’s much-hyped iPhone 17 lineup has sparked a backlash from both investors and buyers. Instead of fueling excitement, the launch triggered a sell-off that erased more than $112 billion in market value in just two days.

The company’s shares fell 1.5% immediately after the September 9 unveiling, then plunged 3.23% the next day to close at $226.79. Analysts say the reaction reflects more than routine profit-taking—it highlights deep concerns about Apple’s innovation strategy, margins, and its place in the AI race.

Apple’s market capitalization stood near $3.52 trillion before the event. A 3.2% decline wiped out around $112.6 billion—roughly the size of Nike’s entire market value. Even the smaller 1.5% slide equated to $52.8 billion in lost value.

By Thursday, shares were attempting a slight recovery, up 0.3% in pre-market trading, but the damage underscored Wall Street’s shifting mood.

The lukewarm reception was compounded by downgrades. Phillip Securities cut Apple to Reduce from Neutral, citing “stretched valuation” and rising headwinds, including tariffs and high capital expenditure. DA Davidson downgraded Apple to Neutral from Buy, warning the iPhone 17 family lacked the innovation to drive a major upgrade cycle.

Both firms left their price targets below the current share price—$200 for Phillip and $250 for DA Davidson—signaling more downside risk.

“Apple’s not really innovating… they’re still behind the eight ball on A.I. and the market is a little bit skeptical,” said Thomas Hayes of Great Hill Capital.

Apple CEO Tim Cook channeled Steve Jobs as he unveiled the ultra-thin iPhone Air—at 5.6 mm, slimmer than Samsung’s S25 Edge. Inside were a new A19 Pro chip, titanium frame, and improved Ceramic Shield glass.

Fans applauded. YouTuber Gaurav Chaudhary, with 24 million followers, praised the design and durability. IDC’s Nabila Popal said the Air’s pricing undercuts Samsung and should spur upgrades.

But for Wall Street, style wasn’t enough. With the Air carrying just one camera, and key AI features delayed, investors saw another iterative cycle rather than a leap forward.

Apple shares are down 6.4% this year, even before this week’s decline. Meanwhile, Microsoft and Nvidia have posted double-digit gains on the back of AI leadership. Analysts warn Apple risks ceding its innovative edge if it fails to close the AI gap quickly.

DA Davidson summed up the mood: “Until Apple can redefine products or develop compelling new ones, growth will remain constrained under the status quo.”

For consumers, the iPhone 17 lineup may still prove popular this holiday season. For investors, the message is stark: Apple’s dominance can no longer mask hesitation about its future direction.

The company that once redefined entire product categories is under pressure to prove it still can. For now, the numbers show just how expensive disappointment can be—$112 billion gone in two days.

- With inputs from Agencies