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Why Are Investors And Apple Fans Unhappy With The iPhone 17 Launch?

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12th September, 2025 10:38 IST

Apple's iPhone 17 series, unveiled earlier this week, at the 'Awe-Dropping' event in Cupertino, was expected to spark excitement but instead triggered a sharp market reaction, erasing $112.6 billion in market value in over two days. The company's shares slid 1.5 percent post-event and plummeted 3.23 percent the next day, closing at $226.79. While such post-launch dips are not uncommon for Apple due to its massive trading volume, historically averaging a 0.2 percent drop on announcement days with a 2.8 percent rebound within a month, the scale of disappointment among investors, buyers, and Apple fans highlights deeper concerns about innovation, pricing, and design.

Why are investors disappointed with the iPhone 17 launch?

Investors expressed frustration over the iPhone 17's lack of groundbreaking features, particularly in artificial intelligence (AI), reports AFP. With rivals like Google and Samsung advancing AI integration, Apple's delay of a major Siri overhaul to 2026 and vague AI roadmap disappointed those expecting a transformative upgrade cycle. The 'sell-the-news' effect, fueled by pre-event leaks of features like the ultra-thin iPhone Air, left little surprise, contributing to subdued trading volumes. Additionally, Apple's decision to absorb over $1 billion in US tariffs without raising prices raised fears of squeezed profit margins, prompting downgrades from firms like Phillip Securities (to Reduce, $200 target) and DA Davidson (to Neutral, $250 target), who cited 'stretched valuation' and limited innovation.

Apple Fans: Pricing and Design Disappointments

Buyers, while intrigued by the iPhone 17’s new A19 chip and the ultra-thin iPhone Air’s 5.6mm titanium design, were concerned about pricing and value. The iPhone 17 Pro’s base price rose for 256GB, with no lower-capacity option. Apple’s choice to maintain prices despite tariff costs, which could exceed $1 billion quarterly, signaled potential margin pressure, indirectly affecting buyer perceptions of long-term value. The iPhone Air was praised for undercutting Samsung’s Galaxy S25 Edge but criticized for featuring only one camera, limiting its appeal for photography enthusiasts.

Apple fans voiced strong discontent on social media, particularly over the iPhone 17 Pro and Pro Max’s design changes. The full-width camera bar and textured glass back, intended to enhance wireless charging, were labeled 'terrible' and 'ugly' on X, with some comparing the design to Android devices like the Google Pixel 10.

The absence of a black color option and the introduction of a bright orange variant, dubbed 'a crime against design,' further fueled criticism. Fans lamented that the redesign strayed from Apple’s signature aesthetic, with one X user stating, 'iPhone 17 Pro is the ugliest iPhone ever. Steve Jobs would have fired everyone.'

Despite some praise for the iPhone Air’s slimness and durability, the overall sentiment reflected a sense of betrayal among loyalists.

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