Investing.com - The mood with which Apple (NASDAQ:AAPL) CEO Tim Cook led the unveiling of the company's new products, including the much-anticipated iPhone 15, did not rub off on investors.
As of 12:21 Mexico City time and just after the end of the event held at its campus in Cupertino, California, Apple's shares were down more than 2.4 per cent at $174.92.
This morning, Apple unveiled its new generation of smartphones, iPhone 15, which will start at $799, while the iPhone 15 Plus will start at $899. The iPhone 15 Pro version will have an introductory price of $999, while the iPhone 15 Pro Max will start at $1,199.
With this, Apple opted not to raise prices for its new releases, contrary to what analysts expected, who were predicting price hikes of up to $100 for the high-end devices.
In addition, the company unveiled a new version of its smartwatches, Apple Watch Series 9 and Ultra 2, launching its first carbon-neutral line, as well as a change to the devices' charging ports, adopting the USB-C standard, replacing the previous Lightning port and responding to the demands of European regulators.
Apple's presentation this morning was one of the most anticipated events for investors, with a challenging outlook on the backdrop.
The world's most valuable company made the launch at a time when sales of its smartphone are sliding, as China banned the use of iPhones by state officials and employees.
Despite the fall, the stock's performance following Apple's unveiling followed the script: "Approximately 75% of the time the stock price falls after the unveiling of a new iPhone," predicted Dario Garcia, an analyst at XTB, as previously reported by Investing.com.
Tuesday's share price drop takes Apple away from the median target price of $201.35, given by the 43 analysts following the company, so the stock still reflects a potential gain of 15.1%. It is worth noting that in the upper range, there are analysts giving a price target of up to $240 for the next 12 months.
But if one considers the fair value of $161.56, given by InvestingPro from 14 financial models, Apple shares are still overvalued and would be trading at a potential loss of 7.7%.
With Apple's new products, investors are waiting to see whether they will be enough to stimulate demand and mitigate the potential fallout from China's ban.
"There is some risk of share losses in China for Apple, but even in our worst-case scenario, the impact will be in single-digit percentages," said analysts at Evercore (NYSE:EVR).
For Apple's fiscal fourth quarter, which ends in September, analysts at InvestingPro expect revenue to fall 1% from the same period last year to $89.237 billion, after forecasts were revised down from the $90.769 billion expected before the company's fiscal third quarter report.
As for its earnings per share (EPS), analysts also downgraded it from $1.41 to $1.39, but this still reflects a 7.7% increase over the fourth fiscal quarter of the previous year.
Translated from Spanish using DeepL.
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