Apple Stock Declines Following iPhone 17 Launch – Insights from Wall Street Analysts

Please note that this content does not constitute investment advice. The author does not hold positions in any of the stocks discussed herein.

Following the much-anticipated launch of Apple’s latest iPhone models, Wall Street analysts have provided their insights, though none have significantly upgraded their stock ratings. The response appears to reflect a cautious optimism rather than overwhelming enthusiasm, a sentiment that contrasts with the event’s promotional tone.

Bank of America has increased its share price target for Apple from $260 to $270 while maintaining a Buy rating. Analyst Wamsi Mohan emphasized that the new iPhone launches may position Apple favorably in the emerging field of AI technology. Although the stock price saw a minor decline post-launch, Mohan advised investors to remain optimistic, citing historical recovery patterns typically seen 30 to 60 days after such events.

Mohan also noted that the price increase for the Pro model’s entry-level variant—starting at $1, 099 for 256GB, up from $999 for the 128GB model last year—was a key factor influencing the revised price target.

In a similar vein, Redburn analyst James Cordwell articulated that the iPhone 17 launch reaffirmed his firm’s belief in Apple’s return to a hardware-centric business strategy. He opined that the event highlighted the significance of design in the new models, predicting a 4% increase in iPhone revenue year-over-year during Apple’s fiscal year 2026. With revised earnings per share estimates of $8.24 and $9.05 for fiscal years 2026 and 2027, Redburn lifted its price target from $230 to $260 but maintained a Neutral rating due to the stock’s current valuation.

UBS analysts examined the implications of Apple’s decision to phase out the 128GB base configuration in the latest iPhones. Although the retail prices of the new models have risen, UBS argued that this move, when aligned with storage configurations, effectively stabilizes pricing compared to the previous year. They posited that with the Base and Pro models projected to account for about two-thirds of sales, there could be an approximate year-over-year price increase of 3.5%.Despite these insights, UBS kept its price target steady at $220 and issued a Neutral rating, citing slight potential increases in production costs offsetting price gains.

HSBC also maintained its price target at $220, issuing a Hold rating. They noted that many of the features showcased during the launch event had already been anticipated due to leaks. Nonetheless, the bank acknowledged notable advancements in hardware innovation, particularly highlighting improvements in the iPhone Air’s design and the enhanced noise cancellation capabilities of the AirPods.

Evercore’s Amit Daryanani raised Apple’s target price from $250 to $260, citing the significant design changes across the iPhone 17 lineup. Daryanani believes these alterations could spur an upgrade cycle among iOS users, labeling the iPhone Air as a potential game-changer that could catalyze renewed interest in Apple’s product offerings.

Melius’ analyst Ben Reitzes increased Apple’s share price target by $30 to $290, supported by a favorable earnings outlook for FY27. Reitzes expressed confidence in Apple’s ongoing Services expansion, while also noting that recent frustrations with Siri would not detract from the overall brand strength, asserting that “patience is being rewarded.”

Finally, Rosenblatt’s Barton Crockett adjusted Apple’s price target to $241 while holding a Neutral stance on the stock. He referred to the iPhone updates as a “solid improvement”and underscored recent positive developments, including exemptions from tariffs and significant contracts with Google, which might help alleviate previous concerns about the company’s prospects.

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