Apple shares fall 7.4% from record high ahead of iPhone 16 launch

Apple shares: Apple shares have dropped 7.4 per cent, slipping from a record high of $237.23 to $220.82, ahead of the much-anticipated launch of the iPhone 16. The decline comes as the tech giant prepares to unveil its latest iPhone lineup at its fall event on September 9 at its Cupertino headquarters. Investors appear cautious ahead of the product launch, contributing to the stock’s recent slide, which is seen as part of the broader market trend influenced by high competition in the global smartphone sector.

According to research from Counterpoint, the global smartphone market grew by 8 per cent year-over-year (YoY) in second quarter of 2024, reaching 289 million units shipped, driven by stronger consumer demand in regions such as the Caribbean, Latin America, and Europe. Samsung retained its top spot with a 19 per cent shipment share, buoyed by strong sales of its Galaxy A-series. However, Apple ’s shipments showed only marginal growth in Q2 due to weaker demand in North America and stiff competition in China. In contrast, Xiaomi led the market with a 27 per cent growth, benefiting from a strong performance in China, India and emerging markets.

Apple Inc. reported better-than-expected earnings and revenue for the first quarter of fiscal 2024. The company's net income surged by double digits, reaching $33.92 billion, or $2.18 per diluted share, surpassing analysts' estimates of $32.56 billion, or $2.09 per share.

Revenue rose 2 per cent to $119.58 billion, also exceeding projections, fuelled by record services revenue and a nearly 6 per cent increase in iPhone sales. Despite this growth, Apple experienced a notable 13 per cent drop in sales in the Greater China region, even as revenues rose in all other geographies.

The decline in Greater China— Apple 's third-largest market, which includes mainland China, Hong Kong, and Taiwan—could heighten concerns about waning demand, particularly as competition from local brands like Huawei intensifies.

Meanwhile, Apple will be assembling its latest iPhones in India.

Apple is set to launch four models in the iPhone 16 series: the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. All models will run on iOS 18 and feature Apple Intelligence. While the iPhone 16 and iPhone 16 Plus will retain display sizes of 6.1 inches and 6.7 inches, the iPhone 16 Pro and Pro Max will feature larger displays at 6.3 inches and 6.9 inches, respectively.

A key change in this generation is the use of the A18 chip across all models, marking a departure from Apple ’s usual practice of equipping non-pro models with older chips. Additionally, the Pro and Pro Max versions will receive significant camera upgrades, including a 48MP ultra-wide lens and an improved telephoto system.

The A18 chip is based on Arm’s V9 architecture, with Apple extending its partnership with Arm through 2040. Arm’s technology plays a dominant role in the smartphone chip market, accounting for 50 per cent of global revenue, and has been a key partner for Apple since 1990.