Apple's fall product launch event met expectations for new hardware but included minimal discussion of new artificial intelligence capabilities. Apple stock declined on Wednesday.
On Tuesday, the consumer electronics giant introduced its iPhone 17 family of smartphones, including the ultrathin iPhone Air. It also showed off new AirPods Pro and Apple Watch models.
The new handsets included incremental improvements to processors, displays, cameras and battery life.
"Consumers may be pleased, and some analysts surprised, by limited/muted price hikes," Rosenblatt Securities analyst Barton Crockett said in a client note. He called the iPhone 17 lineup "a solid update."
While the iPhone lags in AI features compared with handsets from Samsung and Google, consumers do not appear to be switching from the Apple ecosystem, Crockett said.
"We presume Apple buyers will make purchases driven largely by necessary replacement cycles and the appeal of better cameras and battery life," he said.
Crockett kept his neutral rating on Apple stock and raised his price target to 241 from 223.
Apple Stock Retreats Post-Event
On the stock market today, Apple stock fell 3.2% to close at 226.79. On Tuesday, Apple stock slid 1.5%.
Apple didn't discuss AI much during the event because it didn't want to make the mistake again of overpromising and underdelivering, Gene Munster, managing partner at Deepwater Asset Management, said in a report. He expects Apple to come out with an AI-enabled Siri digital voice assistant early next year.
One AI demonstration earned raves from analysts. Apple showed how its AirPods Pro wireless earbuds can do live language translation. And it works with your iPhone so a user can provide text translations of their responses on screen.
"The live translation demo for the new AirPods Pro was awesome, proving a worthy wearable upgrade for travelers and could finally help stabilize the wearables category, which has been declining," Melius Research analyst Ben Reitzes said in a client note.
The AirPods Pro 3 also includes new heart-rate sensors.
Apple Stock Gets Price-Target Hikes
Reitzes reiterated his buy rating on Apple stock and raised his price target to 290 from 260. But his price-target hike was mostly related to greater confidence in the company's services business and lower tariff risks.
The lack of AI talk during the Apple event was noticeable, said Ryuta Makino, a research analyst for Gabelli Funds.
"Apple seemed to avoid talking about AI or Siri, which is disappointing but expected," Makino said. "I believe that Apple must make some drastic changes to its AI strategy."
Oppenheimer analyst Martin Yang knocked the iPhone Air for its shortcomings on battery life and imaging capabilities.
"It feels more like a one-time transition to a foldable iPhone in 2026," he said in a client note. Yang rates Apple stock as perform, or neutral.
IPhone Air Called 'Showstopper'
Evercore ISI analyst Amit Daryanani had a favorable opinion of the iPhone Air. He called the handset, which is just 5.6 millimeters thin, a "showstopper."
Daryanani kept his outperform rating on Apple stock and upped his price target to 260 from 250.
Needham analyst Laura Martin maintained her hold rating on Apple stock.
"We saw nothing today that made us want to raise our estimates for iPhone sales," she said in a client note late Tuesday. "We argue that AAPL is a single product company, with the iPhone as its anchor product, and, therefore, AAPL shares will NOT work until there is an iPhone replacement cycle."
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
