Apple Stock Performance: New iPhone Launch Meets Market Headwinds
Market Performance and Recent Developments
Apple’s stock performance in 2025 has been challenging, with shares down 4% year-to-date, despite seeing a modest bounce in August.
However, the company’s June quarter demonstrated its resilience, posting impressive results with $94 billion in sales (up 10% year-over-year), while achieving a 12% surge in EPS to $1.57. iPhone sales showed particular strength with a 13% increase, and the Services segment reached record highs.
Latest Product Launch and Market Impact
In a significant move, Apple has introduced its first major iPhone redesign in years, unveiling the new iPhone Air, which CEO Tim Cook described as the ‘biggest leap ever for iPhone.’
The new lineup includes four devices: the iPhone 17 base model, iPhone 17 Pro, iPhone 17 Pro Max with expanded storage, and the thin iPhone Air. All models feature enhanced durability with ‘ceramic shield’ displays, while the Pro version boasts improved battery life and increased memory.
Financial Outlook and Market Position
Looking ahead, analysts project Apple’s revenue and earnings per share to grow at a compound annual growth rate of 6% and 13% respectively from fiscal 2024 to 2027.
The company maintains a strong financial position with $133 billion in cash and marketable securities, supporting continued share buybacks and dividend growth. Over the past three years, Apple has repurchased 7% of its shares and has maintained 12 consecutive years of dividend increases.
Market Challenges and Competition
Despite the new product announcements, Apple’s stock declined approximately 1.5% following the event, contributing to a nearly 4% decrease since the start of 2025. Market observers note that some of Apple’s new features trail similar offerings from competitors, such as Samsung’s thin Galaxy S25 Edge model launched in May.
The company continues to rely heavily on its services segment, which now boasts over 1 billion paid subscriptions, to counterbalance slower hardware sales.
