Apple is falling after it announced the iPhone X
Apple announced the iPhone X, iPhone 8 and 8 Plus, the Apple Watch Series 3 and a new Apple TV on Tuesday. All were extensively leaked before the event and investors don't seem overly bullish on the company after hearing all Apple has to offer.
Shares of Apple are down 0.90% in early trading on Wednesday, the day after the announcement event. The flagship announcement, the iPhone X, featured a screen that takes up most of the front of the phone.UBS said Apple usually moves up or down about a couple percent the day of its announcement event. It then rises slightly from the event to the launch, which for the iPhone X comes in a later-than-usual late October. The stock usually then slips for a couple weeks post-launch before gaining into the earnings release, according to UBS.
Apple is following that trend so far, as its move down on Tuesday and early Wednesday falls within the 2% UBS predicted. Because the new device will be launched later than normal for Apple, the trend may change from previous iPhone releases.
Most analysts are bullish after the event. Some see a "supercycle" of upgrades as many customers held off on upgrading during the last cycle in anticipation of the new phone. The new facial unlock technology may pose a security risk for the new phones but will provide new tracking capabilities for tools such as messaging apps, Bank of America Merril Lynch pointed out.
Apple is up 37.24% so far this year and is trading at $159.29.