Apple Stock Hits 4-Week Low After iPhone 16 Launch; Analyst Previously Noted 30-60 Day Recovery Trend

Apple Inc. AAPL saw its stock dip to its lowest level in four weeks on Monday, falling 1.4% to $218 a share by 3:00 p.m. ET, following the much-anticipated unveiling of the iPhone 16 series at Apple Park in Cupertino, California.

Despite the unveiling of multiple new products, including the iPhone 16, Apple Watch Series 10, and updated AirPods, investor immediate response was tepid, in line with past episodes.

Last week, Bank of America analyst Wamsi Mohan noted, “Past events have seen the stock pull back after the event, only to recover 30-60 days post event.”

iPhone 16 Pricing:

• iPhone 16: Starts at $799
• iPhone 16 Plus: Starts at $899
• iPhone 16 Pro: Starts at $999
• iPhone 16 Pro Max: Starts at $1,199

Apple Watch Series 10 Pricing:

• Apple Watch Series 10: Starts at $399

Apple Watch Ultra 2 Pricing:

• Apple Watch Ultra 2: Starts at $799

AirPods Pricing:

• AirPods 4: $129
• AirPods 4 with Active Noise Cancellation: $179

Chart: Apple Dips On Apple Event

New iPhone 16 Features

The iPhone 16 features a new A18 Bionic chipset, which improves processing power and energy efficiency. It also integrates a new Action Button, providing customizable shortcuts, and dynamic island notifications that were introduced in last year's models.

The device is powered by iOS 18, allowing for deeper customization and enhanced privacy features.

The Pro versions come with larger 6.3-inch and 6.9-inch displays, thinner bezels, and new colors, including a “desert titanium” option. Additionally, the iPhone 16 Pro boasts improved camera technology, including a 48MP primary sensor and 4K 120fps slow-motion video recording.

The Pro models also feature the A18 Pro chip, an even more powerful processor than the standard A18, designed to handle more resource-intensive applications, including advanced photography and gaming.

Apple's emphasis on artificial intelligence was a key talking point during the event. Dubbed “Apple Intelligence,” the new AI system is integrated into the iPhone 16 models, aiming to enhance the capabilities of Siri by making it more contextually aware and personal for users.

Craig Federighi, Apple's senior vice president of Software Engineering, highlighted the role of Apple Intelligence in shaping a more intuitive user experience, stating that the AI-powered system “marks the start of a new era for Siri, with richer language understanding and personalized interactions.”

‘A Multi-Year Software Driven Upgrade Cycle’

Ahead of Monday’s unveiling, analyst Mohan offered a more optimistic perspective in a Sept. 5 note, suggesting that the market's immediate reaction may not reflect the company’s long-term potential.

Mohan highlighted historical data showing that Apple’s stock typically performs well 30 to 60 days after a major product launch, despite often seeing a pullback immediately following the event.

This has been the case with most iPhone releases, where investors initially react to the incremental nature of the updates, only for the stock to rebound once actual sales data starts rolling in. Mohan pointed out that the strongest post-launch rally occurred after the iPhone 11 series debut in 2019, when Apple shares surged by 20% within 60 days of the event.

He emphasized that Apple’s iPhone 16 launch marks the beginning of what could be “a multi-year software-driven upgrade cycle,” underpinned by the integration of advanced features like Apple Intelligence, which could fuel long-term growth.

Mohan also noted that the shipment timeline for the iPhone 16 mirrors that of last year’s iPhone 15 launch, with nine shipping days expected in the current fiscal quarter, giving Apple a small but significant window to report initial sales figures for the new models.

Bank of America maintained a Buy rating on Apple with a price target of $256, implying an 18% upside from current levels.

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