iPhone 15 Launch: Why Apple Shares Bleed On Most Product Launches Every Year

Apple's much anticipated annual product launch event 'Wonderlust' finally took place on September 12. The Tim Cook-led tech giant revealed iPhone 15 and other products at its flagship event last night.

Apple Shares Fall After iPhone 15 Launch

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And just like most of the past years when Apple's annual launch event took place, Apple's share price, too, behaved as expected. World's first $3 trillion market cap company Apple's shares declined 1.7% on Tuesday to end at $176.30. In the last five days, Apple's stock price has fallen more than 6%, losing more than $200 billion, especially amid reports of China banning government employees from using its products. However, despite the recent drop, Apple shares have rallied 41% this year to date.

Why Apple Stock Usually Falls After Product Launches

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The fall in Apple stock has been a long tradition of poor share price performance on the day the product launches are done. Excluding the first iPhone's launch in 2007, Apple shares have fallen on most product launches.

So why does it happen? The poor performances are a result of investors accustomed to regular innovation from Apple and also leaks and rumours that are reported prior to the presentations. Thus, any anticipation of newer products is already priced into the stocks before their eventual release. On the other hand, Apple is also known for its secrecy around products. Unlike other companies that happily show off prototypes and early versions to gain audience and investor momentum. Apple plays their cards close to their chest. Thus, no one really knows how the products will actually perform.

Also Read: How A Lost iPhone Led To Warren Buffett Investing Billions In Apple

What Products Has Apple Launched This Time

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Apple unveiled its iPhone 15 line-up of smartphones during an event in Cupertino, California. The tech giant revealed four new smartphones - the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max.

Apple also released its highly-awaited Apple Watch Series 9 during the company's annual launch event which was dubbed "Wonderlust" this year. The new series brings a lot of new features.

Also, Apple released the Apple Watch Ultra 2, the latest addition to the company's roster of watches and the follow-up to the Apple Watch Ultra - a watch designed for high performance. The company launched the new high-end watch along with the Apple Watch Series 9 which became Apple's first carbon-neutral product.

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