Apple's reveal of the iPhone 13 for the first time was met with a drop in stocks on Tuesday, aligning with the weak stock performance typically observed on the day new devices are announced. Shares of the tech giant fell after Apple executives, including CEO Tim Cook, presented the new lineup of phones and other devices. The stock declined by more than 1%, closing at $148.12 during New York trading. According to calculations by "Al Arabiya.net," Apple's market value dropped by roughly $25 billion during yesterday's trading. Prior to Tuesday, Apple shares had decreased on 75% of the days when the company unveiled new iPhones, according to data compiled by Bloomberg.
Excluding a rise of 8.3% on the day co-founder Steve Jobs introduced the first iPhone in 2007, Apple's stock has, on average, dropped by 0.8% on its first day. This comes as the iPhone accounts for nearly half of Apple's revenues in the last fiscal quarter. Bespoke Investment Group attributed the stock decline to investor adaptation to Apple's routine innovations, as well as stock increases prior to the announcements based on rumors disclosing many details about the new products. The research firm noted in a client memo on Monday, "Any positive impact from a new release is typically priced into the stock."
Apple shares have recorded double-digit gains this year, marking their third consecutive annual rise, buoyed by investor optimism regarding the company's growth prospects. However, the stock faced a setback last week after a federal judge ordered Apple to modify its App Store business model. The shares experienced their largest decline in four months following the ruling, wiping out $85 billion of its market value. Nevertheless, Wall Street remains optimistic about the stock.
Eighty percent of 47 analysts covering Apple recommended buying the shares, with only two suggesting selling them, according to data collected by Bloomberg, which "Al Arabiya.net" reviewed. The analysts' average expectations for the stock indicated a rise of 11% over the next 12 months, as of Monday's closing session.
