Apple Inc (NASDAQ: AAPL) launched its latest iPhone 17 lineup and new AirPods at its closely watched “Awe Dropping” product event on Tuesday, September 9th.
With the launch of new devices, the multinational tried to refresh its hardware appeal amid growing concerns that it’s falling behind in artificial intelligence (AI).
However, the market’s lukewarm response reflects doubts about AAPL’s ability to drive significant revenue growth from these updates. Its all-new iPhone 17 Air does introduce a sleeker form factor – but experts believe it lacks the disruptive impact needed to lift the stock.
Amid a misplaced focus on flagship smartphone, though, investors may be discounting an exciting AI feature in the new AirPods, which could prove the real catalyst for Apple stock moving forward.
Why iPhone 17 won’t help Apple stock
In a post-event interview with CNBC, industry expert Patrick Moorhead expressed disappointment in the launch of iPhone 17 – going so far as to call it a “crapshoot”.
While some are lauding Apple for a more stylish “Air” variant, Moorhead believes it’s more likely to “cannibalize” Pro Max sales than expand the firm’s market share in the smartphone segment.
“Nothing AAPL brought out here was definitive on anything that can move revenue, decrease cost, or take share,” he argued on Closing Bell: Overtime.
Moorhead outlined six potential growth levers: increase in average selling price (ASP), share shift, replacement cycles, new categories, service attachments, and cost reductions – but concluded the iPhone Air doesn’t check any of those boxes.
“This is not a new category,” he added, casting doubt on its ability to excite investors. AAPL stock is currently down over 5.0% versus its year-to-date high.
Why AirPods Pro 3 might boost AAPL shares
While Apple may have disappointed on iPhone, a senior tech analyst Gil Luria sees more promise in the new AirPods.
According to the Nasdaq-listed behemoth, its latest earbuds offer live translation of conversations in foreign languages in real time – which Luria dubbed “an AI breakthrough if it actually works.”
Such a feature on the AirPods will particularly prove game-changing for Apple shares given peers, including Meta Platforms and Google have so far struggled to deliver reliable live translation via wearable tech.
AirPods Pro 3 offer a sleek design and drop-resistant build as well – but it’s the real-time language translation feature “that would actually get people to upgrade,” Luria noted.
If the product delivers as Apple claims, it could mark a meaningful step forward in consumer AI – and a reason for investors to take notice.
Is it time to load up on Apple shares?
Apple’s product refresh shows the company still knows how to design sleek hardware – however, investors are looking for more than aesthetics.
The iPhone 17 Air may appeal to a niche segment, but without a clear path to revenue growth, it’s unlikely to move Apple stock.
In contrast, the AirPods’ artificial intelligence capabilities hint at a more transformative future. If Apple can turn that promise into performance, it might just find its next growth engine – not in the palm of your hand, but in your ears.
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