On Tuesday, Apple Inc.'s (NASDAQ:AAPL) "Awe Dropping" event drew a mix of enthusiasm and skepticism from analysts, who praised the company's camera upgrades and thinner designs but questioned whether the iPhone 17 lineup offers enough innovation to ignite investor excitement.
Incremental Gains Raise Concerns
Daniel Newman, CEO of The Futurum Group, struck a more cautious tone.
Speaking with CNBC, he argued the event lacked the kind of breakthrough needed to spark a new sales supercycle.
"This is a really tough moment for Apple," Newman said, noting that while the thinner phone and longer battery life were appealing, the updates were "pretty incremental."
He pointed to Apple's earlier push around "Apple Intelligence," which was expected to fuel a wave of demand but failed to do so. "We haven't had a big supercycle in four years," Newman said. "Does the thinnest phone ever and longest battery drive one? I'm not sure."
AI Strategy In The Spotlight
Newman also said investors are watching Apple's AI strategy closely, especially as companies like Nvidia Corporation (NASDAQ:NVDA) and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google have surged on AI-driven growth.
While Apple has the advantage of a massive installed base, Newman questioned whether its current approach will satisfy shareholders hungry for stronger growth.
"It's hard for that investor to say, I want to put a dollar here into Apple," he said, suggesting acquisitions in the AI space may be necessary to catch up with rivals.
Analysts React To Apple's iPhone 17 Launch
Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, described the updates as welcome but not groundbreaking.
"Not much innovation but certainly nice upgrades to the iPhone lineup and some fairly compelling reasons to go back into the Apple Store," he said, noting he was intrigued by the new thin design but wanted to test it firsthand.
Gerber added that holding prices steady across models was "good" and called the overall launch a "nice upgrade for Apple products."
Gene Munster, managing partner at Deepwater Asset Management, put the spotlight squarely on the camera system.
"It's all about the camera," he said. Highlighting the Pro model's advancements, Munster called the setup "a beast," pointing out its 8x telephoto lens with 40x digital zoom, a sharp improvement over the iPhone 16 Pro's 5x telephoto and 25x digital zoom.
Price Action: Despite the product showcase, Apple shares slipped 1.48% during Tuesday's session and dipped another 0.35% in after-hours trading, according to Benzinga Pro.
Benzinga's Edge Stock Rankings show that AAPL continues to trend higher across short, medium and long-term periods, with more detailed performance insights available here.
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Apple Awe Dropping | Photo courtesy: jackpress / Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
