Apple shares erase 2% dip, gain 0.92% to $319.15 high

Apple shares erased a 2 percent intraday slide to gain 0.92 percent, hitting $319.15 after the foldable iPhone Duo debut.

Bank of America's Wamsi Mohan, who reiterated a Buy rating with a $380 price target ahead of the event, had flagged the launch as a potential sell-the-news moment. "Apple shares have often exhibited a modest sell-the-news reaction immediately following launch events," Mohan wrote in a Tuesday note, citing data showing the stock fell the day after 10 of 24 product launches since 2007.

The reversal came as Apple unveiled the iPhone 18 Pro and Pro Max with a $100 price increase, plus the foldable Duo starting at $1,999. Chief executive John Ternus made his first major product debut, introducing the A20 Pro chip and new glacier and burgundy colorways for the iPhone 18 line. The company also announced Apple Watch Series 12 and AirPods 5.

The launch marks Apple's entry into the foldable market, where Samsung has sold devices for years and Chinese rivals unveiled competing products days before the event. IDC senior research director Nabila Popal projects the foldable could generate more than $45 billion in revenue for Apple by the end of next year. MoffettNathanson estimates the device needs to be priced near $2,500 to boost margins, above the announced $1,999 starting price.

Analysts Split on Foldable Pricing, Demand

Wall Street views on the launch diverged sharply. HSBC's Nicolas Cote-Colisson said Apple's brand commands high pricing power and expected price increases of at least $100 to offset rising memory costs, which he estimated at $100 to $150 per smartphone. Laura Martin at Needham expressed concern about the foldable's price point "given rising memory prices and advanced-node supply constraints." Paul Meeks at Freedom Capital Markets was skeptical, noting Samsung has offered foldables for years.

The stock's post-event recovery suggests investors found enough in the announcement to look past the initial disappointment, though the longer-term test will be whether the foldable drives a meaningful iPhone replacement cycle. Apple shares have risen 60 days after 17 of 24 product launches since 2007, according to BofA's research. The company faces a crowded competitive field, with Chinese manufacturers having launched foldables days before Apple's event, sharpening the pressure on Ternus's first major product cycle.

This article is for informational purposes only and does not constitute investment advice.