Sep 14, 2023

Apple released its iPhone 15 at its Cupertino, California headquarters, and investors will be closely monitoring the stock’s reaction.

AAPL Weekly Chart

AAPL: Weekly Chart

Apple Inc. (AAPL) recently lost $200 billion in market capitalization, with its shares closing below their previous highs in early 2022. As technology stocks remain under pressure, a further decline in Apple’s stock price cannot be ruled out.

Chief Executive Officer Tim Cook unveiled the new iPhone, Apple Watch, and AirPod models on Tuesday at the annual hardware product launch event in Silicon Valley. The event was live streamed on YouTube and aimed to entice customers with improved chips and cameras in the latest iPhones, the 15 and 15 Pro. The updated devices now use a USB-C charging port, in line with European regulations that come into effect next year.

Apple’s share price on the New York Stock Exchange (Nasdaq), where the company is listed, fell by 2% after the launch of the new iPhone. This valuation drop followed news that the Chinese government had banned iPhones from being used in its government agencies due to cybersecurity concerns.

Victoria Scholar of Interactive Investor stated that recent developments in China have “overshadowed” the launch. She said, “Beijing is cracking down on the use of iPhones among government officials there as US-Sino tensions intensify and technology becomes a key battleground.”

Tom Forte, Senior Research Analyst at D.A. Davidson stated that Apple’s newly announced products may not boost their stock price into the end of the year, and investors will need to see traction in sales before they can be confident in the company’s performance.

Despite the recent sell-off, Apple is still valued at 26 times its forward earnings, which is at the higher end of the last ten years. Investors should monitor the Nasdaq and Apple closely after the index breached its weekly high from 2022. Some tech stocks that have surged in recent years on the back of AI hype could be vulnerable to a sell-off.

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