Why does Apple stock price drop on the day when new iPhones are released?

Steve Jobs famously said, "I skate to where the puck is going to be, not where it has been," back in 2007 when he announced that "Apple was going to revolutionize the phone."

Fair enough, 苹果 has consistently committed to Gretzky's statements since Day One. And as a consequence, we've seen a tonne of incredible product debuts!

The Mac was released first, followed by the iPod and the iPhone – Apple rarely upsets its loyal followers. Additionally, it succeeds in providing value to its stockholders.

Apple's stock has increased by almost 290% in the previous five years alone. It is also the most valuable asset in Warren Buffet's renowned portfolio!

However, in an odd twist, amid the HYPE of an Apple Launch event, Apple stock prices suffer and historically have dropped from their highs.

We were interested in learning what triggered this quick selloff in the past because Apple's "Far Out" launch is taking place today.

Apple product debuts are always epic! People flocked to the Apple shop in record numbers to purchase their first iPhone in January 2007, when Steve Jobs unveiled the original iPhone to the world.

After interminable lineups and all-day waits, 270,000 iPhones were sold in only the first 30 hours. And in the next 74 days, the brand sold its one-millionth iPhone!

The impressive sales figures for the iPhone are greatly influenced by Apple's launch events. For instance, during the holiday season after the September 2021 launch, Apple sold more over 40 million iPhone 13 devices!

Now, changes in the stock market frequently represent how customers feel about a company. Investors will indeed purchase the stocks if they have a strong belief in the firm. Launches may appear like a "HAPPY" occasion, but 75% of the time, Apple's stock price fell on the day of the launch.

It decreased by 0.96% in 2021.

For the release of the iPhone 12 series in 2020, the stock price fell by 2.65%.

The majority of its releases since 2007 have followed the same pattern. Since the original iPhone, there have only been four releases when the stock price has increased!

Apple's constant innovation is well known to investors, and many of the specifics have already been acknowledged or hinted at.

As a result, investors begin investing in Apple stocks much early, and the positive benefits of the new release are already included in Apple's share price before the device ever appears.

Because Apple has become so synonymous with innovation, even a product that is much better than its predecessor cannot satisfy shareholders. As a result, when Apple fails to create another innovative gadget, the price of its stock falls.

As a result, more people sell their shares on the day of the launch that followed the stock price drop

In the long term, the iPhone launch event has less of an impact on stock prices than their quarterly revenue, cash flow, and profit figures.

Furthermore, while Apple has long been known as the "iPhone business," it is rapidly transitioning into a software company. Apple's services division generates $70 billion in sales.

Nonetheless, the iPhone remains Apple's MAIN cash cow, accounting for 50% of the company's income. While it is doubtful that a launch event would have a long-term impact on the stock price, launch events will be crucial for the growth of the iPhone and Apple.

So, what are your opinion on this phenomenon?

-----

Follow me on LinkedIn: Kishan Nakrani

founder of Contentpool: Marketing and Growth Experts

If you've like our posts so far, I'd love it if you could give us a mention on LinkedIn .

Stay tuned and keep Minimal.