Now that Apple Inc. has taken the wraps off its iPhone X, iPhone 8 and other new gadgets, Wall Street analysts can’t agree on whether Tuesday’s big reveal was a flop or a smashing success.
Apple’s stock AAPL, -1.43% on Tuesday closed 0.4% lower at $160.86, as a rally to nearly $164 during the tech giant’s event didn’t have staying power. But the Dow Jones Industrial Average component’s shares are still higher for the week — up by 1.4% — and have scored a year-to-date gain of 39%. Meanwhile, the DowDJIA, -0.02% is up by 1.5% for the week and 12% for 2017.
Apple introduced three new smartphones, including the high-end iPhone X that starts at $999, as well as a new Apple Watch and its Apple TV 4K. Below are some of the initial reactions from analysts to the latest lineup of gadgets, ranging from bearish takes to cheering. In premarket action on Wednesday, Apple’s shares were down 0.5%.
KeyBanc views iPhone X as ‘disappointing’
Tuesday’s event was “largely neutral,” said an analyst team from KeyBanc Capital Markets led by Andy Hargreaves.
“We were positively surprised by the Apple Watch functionality and the price increase on the iPhone 8 and 8 Plus, but were disappointed by the lack of incremental functionality in the iPhone X to justify the $999 price point,” the analysts wrote in a note.
The iPhone X (which Apple pronounces as “iPhone 10”) is “disappointing, in our view, and raises the risk that Apple will struggle to drive incremental upgrade activity in future cycles,” the KeyBanc team said.
That’s analyst speak that means people might not buy Apple’s latest phones in the future, as they instead just stick with the iPhones that they already have. Many analysts have been highlighting the potential for a “super cycle” after the latest updates to Apple’s key product, thanks in part to the record number of older-model iPhones in use.
KeyBanc has a rating of sector weight, or neutral, on Apple’s stock, and doesn’t offer a price target.