Apple Lags Behind Big Tech Peers in AI and iPhone 17 Launch

Apple stock has declined 5% since the start of the year, making it the only Magnificent Seven stock in the red for the year. The company has struggled to roll out artificial intelligence features, leading Wall Street to debate whether Apple should make an uncharacteristically large acquisition to close the gap with big tech peers. Low expectations heading into this year's iPhone upgrade cycle could boost the stock in the near term, according to Morgan Stanley analyst Erik Woodring.

Apple stock has experienced a notable decline of 5% since the start of the year, making it the only member of the Magnificent Seven in the red for 2025. The company has faced challenges in rolling out artificial intelligence features, prompting Wall Street to consider whether Apple should make an uncharacteristically large acquisition to close the gap with big tech peers. Low expectations heading into this year's iPhone upgrade cycle could potentially boost the stock in the near term, according to Morgan Stanley analyst Erik Woodring Analysts weigh in on Apple's future after iPhone 17 event^[2].

The iPhone 17 launch event, held on Tuesday, showcased the new iPhone Air model and updated Watches and AirPods. However, the stock underperformed, dropping by about 4.1% since last Friday. Analysts' ratings and estimates suggest a mixed outlook for Apple's future. While some analysts, such as those at Morgan Stanley, hold an overweight rating with a price target of $240, others, like Wedbush, have an outperforming rating with a $270 price target Analysts weigh in on Apple's future after iPhone 17 event^[2].

The company has struggled with integrating AI features, which has led to a slower rollout. Morgan Stanley analysts believe that Apple's "largest base of pent up iPhone demand ever" and new AI features could accelerate growth starting in fiscal year 2026. However, they caution that replacement cycles will contract in the following two years Analysts weigh in on Apple's future after iPhone 17 event^[2].

Despite the challenges, Apple's stock has shown resilience. The company reported a $1.57 EPS for the quarter, beating analysts' consensus estimates of $1.43. Apple's revenue was up 9.6% year-over-year, driven by strong performance in its iPhone segment. The company also announced a quarterly dividend of $0.26 per share, paid on August 14th McAdam LLC Has $16.59 Million Stock Position in Apple Inc. $AAPL^[1].

The iPhone 17 launch event and the subsequent analyst reactions highlight the importance of Apple's upcoming iPhone upgrade cycle. If the company can successfully integrate AI features and meet expectations, it could potentially boost the stock. However, the market remains cautious, and the stock's performance will depend on Apple's ability to execute on its plans.