How Apple’s Highly Anticipated iPhone 16 Launch Could Affect Its Stock

Yesterday, on Sept 09, Apple (AAPL) unveiled its latest iPhone and expanded its Apple Smartphone roadmap. That highly repercussible event showcased the company’s legendary core product and technology platform strategy and solidified its competitive advantage. As Apple prepares to launch the iPhone 16 soon, the biggest question on investors’ minds is pricing. Apple’s next-generation iOS 18 and its integration with AI-driven features is equally important. The iPhone 16 series phones will be the first designated AI (artificial intelligence) incorporated iPhones, which could be a compelling reason for consumers to upgrade their current units.

Apple’s on-device generative AI capabilities are a unique competitive advantage powered by Apple Silicon. Siri can respond on-device or integrate with ChatGPT in Apple’s private secure cloud. There is also a 5-core GPU with support for hardware-accelerated ray tracing.

Having said all that, historically, the iPhone launch event has been a sell-the-news event, meaning Apple (AAPL) stock initially tends to decline for a few days in a row, and “modestly outperform” the market in the following three months. However, the rest will certainly depend on Apple’s earnings report, where the real success (or failure) story would be unveiled.