Smartphone launches are among the most anticipated phenomena in the technology industry and tend to influence the mood of both consumers and investors. Apple (AAPL), especially, has always used these occasions to demonstrate how its new generation of iPhones, packed with technological innovations, will further cement its grip on the luxury smartphone industry.
On Sept. 9, Apple launched the iPhone 17 series, comprising the iPhone Air, the regular iPhone 17, and Pro variants. The devices feature new designs, fast A19 silicon, improved camera systems, and Apple Intelligence upgrades, emphasizing the company’s effort to fuse smooth hardware with artificial intelligence (AI) functionality. The release highlights the idea discussed by Apple that the product remains at the center of the growth narrative despite the company assessing the potential of the stock to continue to appreciate.
The question to shareholders and would-be buyers, now that the iPhone 17 has been unveiled: is it a good time to grab some of these shares? Let’s find out.
Wall Street’s response was muted. AAPL stock slipped about 1.5% on the day of the event and then plunged roughly 3% on Sept. 10. In two trading days, the company lost over $100 billion in market value as investors parsed the news. Reporters noted that many features had leaked ahead of time, so much of the bullish anticipation “buy the rumor” was already priced in.
In particular, market observers cited the lack of a breakthrough AI feature (no Siri overhaul until 2026) and the absence of a “wow” product as reasons for a post‑launch pullback. Overall, the post-launch “sell-the-news” reaction was modest; Apple was up about 3 to 4% the first two days of earnings week after its July results, but the stock did trim the small post-event gains it had.
From a broader perspective, Apple’s stock performance was volatile in 2025. Early in the year, amid rising U.S. tariffs on Chinese imports and concerns that Apple lagged in artificial intelligence, AAPL fell sharply. Until now, Apple has been down roughly 6% year-to-date (YTD), underperforming other “Magnificent Seven” tech giants.
Apple delivered record results in its fiscal third quarter of 2025, comfortably surpassing Wall Street expectations. Revenue rose 10% year-over-year (YoY) to $94 billion, compared with $85.8 billion in the prior-year period, while earnings per share (EPS) advanced 12% to $1.57. The company also broke June-quarter records for total revenue and iPhone revenue.
The iPhone remained the primary growth driver, with sales increasing 13.5% to approximately $44.6 billion. This strength was supported by customer upgrades ahead of tariff deadlines as well as robust demand for the lower-priced iPhone 16e. Services revenue reached an all-time high of $27.4 billion, while Mac sales expanded by about 15% to $8.05 billion, outperforming estimates.
Other segments were more mixed. iPad revenue declined modestly to $6.58 billion, and Wearables & Home products, including the Apple Watch and AirPods, generated roughly $7.4 billion, slightly below projections. Gross margin stood at 46.5%, modestly exceeding forecasts.
Apple ended Q3 with $36.3 billion in cash and about $133 billion in cash plus marketable securities, generating free cash flow of nearly $24.4 billion after dividends paid.
Consistent with past practice, Apple did not issue forward guidance. However, management indicated that it anticipates mid- to high-single-digit revenue growth in the September quarter, citing record levels of its installed device base and broad-based strength across geographies.
Wedbush’s Dan Ives, a long-time Apple bull, reiterated an “Outperform” rating with a $270 price target, calling the new iPhones a potential catalyst for a “super-cycle” of upgrades. Ives notes Apple still has 1.5 billion iPhones in use and highlights incremental gains in design, display, and the AI-ready A19 chip. On the other hand, several analysts were cautious.
A few days ago, Phillip Securities cut AAPL to “Reduce“ with a $200 target, explicitly citing Apple’s “stretched valuation” and headwinds like tariffs. DA Davidson’s Gil Luria downgraded Apple to “Hold” with a $250 target, warning the 17 series lacked a truly “disruptive” feature to spark a major upgrade cycle. These lowered targets still remain above current levels but signal limited near-term upside.
Overall, Wall Street analysts are moderately bullish on the stock, with a consensus “Moderate Buy” rating. The group of 38 analysts covering AAPL has set a mean price target of $241.14, which suggests a modest 3% upside potential from current levels.
Apple’s iPhone 17 launch highlights its strong ecosystem, with sleek upgrades, steady cash flows, and a huge user base, setting up a multi-year refresh cycle. Ongoing buybacks and a solid balance sheet support long-term growth. Tariff costs may weigh in the short term, but Apple’s loyal customers and AI potential give it breathing room. Plus, with a forward P/E near 30, Apple looks cheaper than most of its “Magnificent 7” members, making AAPL stock more attractive for long-term investors.
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com