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Apple Inc. (AAPL) shares traded lower in early trading on Tuesday, with the AAPL stock down about 0.5% to around $236 ahead of the company’s “Awe Dropping” Fall hardware launch event.

The technology giant’s underperforming shares have struggled to gain momentum in the run-up to the highly anticipated unveiling.

The livestream, scheduled for 1 pm ET, will be available on Apple’s website, its official YouTube channel, and Apple TV.

Apple stock is down more than 4% so far in 2025, even after a 39% rebound since April.

Historically, the company’s stock has often slipped on product launch days.

The shares gained 3.3% last week after an antitrust ruling allowed Apple to continue receiving search payments from Alphabet.

What to expect from Apple’s main event?
 

Apple is widely expected to announce its latest iPhone lineup, including the iPhone 17, iPhone 17 Air, Apple Watch Series 11, Apple Watch Ultra 3, Apple Watch SE3, and the AirPods Pro 3.

The new iPhone 17 Air, described as ultra-thin and lightweight, is expected to replace the Plus model from the previous generation.

The launch carries heightened expectations after the iPhone 15 underperformed and demand for iPhone 16 Pro models remained weak.

Apple is aiming to reverse this trajectory with its latest releases.

Analysts on Apple’s event
 

UBS analyst David Vogt said the thinner design of the iPhone 17 Air is new but unlikely to significantly boost sales or shift consumer behaviour.

Vogt added that Apple’s recent software updates have been relatively minor, while major artificial intelligence upgrades to Siri are not expected until spring 2026.

He also expressed scepticism that a potential AI partnership with Alphabet’s Google would have a meaningful impact on iPhone demand.

Vogt maintained a Hold rating on the stock, with a price target of $220.

Jefferies analyst Edison Lee also remained cautious, lifting his price target slightly to $205.82 but reiterating a Hold rating.

Lee pointed to market saturation, rising AI-related costs, and slow innovation as ongoing concerns, while saying there were no clear indicators of robust demand.

Wedbush analysts highlighted the potential for a price hike of $50 to $100 on the iPhone Pro and Pro Max models, citing Apple’s increasing shift of production from China to India.

They noted that most iPhones sold in the US are now made in India, a move expected to be a $1 billion headwind in the September quarter.

Wedbush also projected upgraded cameras, larger batteries, faster charging, and the introduction of the new A19 chip across models.

The firm said investor focus will be on Apple’s AI strategy, with Google’s Gemini seen as a possible partner.

Concerns about the lack of clarity in Apple’s AI roadmap have weighed heavily on its stock, Wedbush noted, despite the company’s global installed base of around 4.3 billion iOS devices.

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