Despite Record Highs in the New York Stock Market, Apple Shares Fall...
"Reflecting Market Disappointment"
Sales Expected to Slightly Decrease Compared to Previous Model
Limited Hardware Changes and Lack of Innovation
On September 10, KB Securities stated that market reactions to the iPhone 17 series have been somewhat negative, citing reasons such as limited hardware changes and a lack of innovative features. As a result, it is expected that market attention will shift to the foldable iPhone, which is anticipated to be released in the second half of next year.
Lee Changmin, a researcher at KB Securities, said in a smartphone-related report released that day, "We estimate that iPhone 17 sales (from September to the following August) will reach 142 million units, a slight decrease compared to the previous iPhone 16's 147 million units." He added, "The market response after the iPhone 17 series unveiling has been somewhat negative. Although major U.S. indices reached all-time highs, Apple's stock price fell by 1.5%, reflecting market disappointment," describing the immediate market sentiment following the release.
The iPhone 17 series, unveiled by Apple on September 9 (local time), consists of four lineups, the same as previous series. The standard, Pro, and Pro Max models remain, while the Plus model is now the thinnest ever released. Major changes include the standard model's display increasing from 6.1 inches to 6.3 inches, matching the Pro, and the front camera's resolution being upgraded to 24 megapixels.
Lee summarized the main points of market disappointment with the iPhone 17 series as follows: limited hardware changes noticeable to consumers; a lack of innovative features such as new artificial intelligence (AI) functions; and negative feedback on the new rear design and limited color options.
Accordingly, he estimated that sales would see a slight decrease compared to the previous model. He also predicted, "In addition to these points, U.S. sales may be affected by speculative demand due to tariffs." However, he added, "A significant drop in sales is unlikely, as Apple is making aggressive efforts to maintain a certain level of sales, including running strong promotional campaigns."
He noted, "Since the iPhone 17 is not expected to generate positive momentum, market attention will likely focus on the foldable iPhone projected for release in the second half of next year."
Additionally, Lee pointed out that Apple is enduring increased manufacturing costs and declining profitability due to promotions as it expands the iOS ecosystem. He commented, "This has led to requests for lower supply prices from related value chain partners, and as a result, companies with a high proportion of Apple sales have recently seen their profitability decline, which is a disappointing factor."
Meanwhile, Lee maintained Samsung Electro-Mechanics as his top pick within the IT sector. He emphasized, "The industry for MLCC (multi-layer ceramic capacitors) and packaging substrates is expected to enter a boom period thanks to AI-driven demand. In particular, for high-value-added MLCCs, it appears we are at the beginning of a supply shortage cycle." He added, "Since the MLCC operating rates for first-tier companies such as Samsung Electro-Mechanics and Murata have already surpassed 90%, price increases for MLCCs at the end of the year or the beginning of next year are likely. If this materializes, the improvement in earnings could be significant."
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