Apple's annual product event on Tuesday introduced a range of hardware and software updates, but the market response was lukewarm, with shares slipping 1.5% in early trading. The company unveiled the iPhone 18 Pro lineup, a revamped Siri, AirPods 5, and new Apple Watch models, yet investors appeared focused on the higher price tag for the flagship devices.
The iPhone 18 Pro starts at $1,199 for 256GB of storage, a $100 increase over the previous generation, while the Pro Max begins at $1,299. Apple also offers a 2TB storage option. The price hike comes as the company integrates its new A20 Pro chip, built on a 2nm process, which promises improved performance and efficiency.
This event marked the first iPhone launch under new CEO John Ternus, who took over from Tim Cook earlier this month. Ternus opened the event with a video highlighting the iPhone's camera capabilities, followed by a brief appearance from Cook, signaling a smooth leadership transition.
The iPhone 18 Pro features a next-generation vapor chamber with three times the surface area of the system in the iPhone 17 Pro, aimed at better thermal management. Battery life is rated at up to 24 hours for the Pro and 30 hours for the Pro Max, a notable improvement. The devices come in four colors: Deep Black, Silver, Glacier Blue, and Burgundy.
Apple also introduced an upgraded Siri, described as an "entirely new version" that can perform actions within apps, including third-party applications. The company says the new Siri AI works with more than 300,000 apps, positioning it as a key differentiator in the AI race. Additionally, iOS 27 will include a feature called "iPhone Handoff," allowing users to use a single phone number across multiple devices.
Beyond the iPhone, Apple announced AirPods 5, priced at $129, or $149 with wireless charging, now featuring active noise cancellation for the first time on its entry-level model. The company also unveiled the Apple Watch Series 12 and Apple Watch Ultra 4, expanding its ecosystem.
Despite the product breadth, the market's muted reaction may reflect concerns about pricing and demand elasticity. The $100 increase could test consumer willingness to pay premium prices, especially amid broader economic uncertainty. Some analysts note that Apple's focus on AI and performance upgrades may justify the higher cost, but others worry about the impact on unit sales.
Investors are also watching how Ternus's leadership shapes Apple's strategy. The new CEO inherits a company navigating intense competition in AI and hardware innovation. The success of these launches will be critical in maintaining Apple's growth trajectory.
For context, Apple's stock has been under pressure recently, with some analysts pointing to potential risks from foldable device hype and other factors. Meanwhile, the broader tech sector has seen mixed performance, with companies like Meta gaining on AI developments and AMD rising on AI chip forecasts.
The new products are expected to ship in the coming weeks, and early consumer response will be a key indicator of whether the price increase is sustainable. Apple's ability to leverage its ecosystem and AI capabilities will likely determine its near-term performance.
This article is for informational purposes only and does not constitute financial advice.
