Apple Launches iPhone 17: Analysts Eye Bigger Updates in 2026
Apple (AAPL) recently unveiled its new iPhone 17 lineup, featuring the highly anticipated thinner model, the iPhone Air. While some analysts were pleasantly surprised by this update, many investors and fans are now looking ahead to more substantial innovations expected next year.
iPhone 17 Highlights and Market Reaction
The standout feature of this week’s release is the iPhone Air, described by Morgan Stanley analysts as “truly differentiated, sleeker, and thinner in-person than expected.” The event provided a “small positive surprise,” according to the firm.
Despite this, Apple’s stock has seen a slight decline following the launch. Shares slipped nearly 2% to close at around $234 on Friday, marking a more than 6% drop since the start of the year. This decline positions Apple as the worst-performing member of the “Magnificent 7” stocks for 2025, a title previously held by Tesla (TSLA) until a late-week rally improved Tesla’s performance.
Analysts remain divided on Apple’s short-term stock potential. According to Visible Alpha, four analysts maintain a neutral rating while another four recommend buying, and only one suggests selling. The average price target sits near $240, indicating a potential gain of less than 3% from the current level.
Limited “Awe-Inspiring” Moments
HSBC analysts noted that Apple “is still not delivering on all promises made in 2024” and maintained a neutral rating post-event. The firm highlighted that the only truly noteworthy innovation was the AirPods Pro 3’s live translation feature. However, they and UBS analysts do not expect this functionality to meaningfully drive sales in the next few quarters.
Looking Ahead: Foldable Phones and AI Features
Some analysts are taking a more bullish view. Citi suggests that the iPhone Air may “lay the groundwork for a foldable phone next year,” which could trigger a stronger replacement cycle among users.
Morgan Stanley also emphasized future opportunities in artificial intelligence. Analysts anticipate a major update to Apple’s AI ecosystem, including a possible Siri revamp expected in 2026. This update may leverage a combination of Apple technology and partnerships with AI leaders such as Google’s Gemini, OpenAI, or Anthropic. They predict this could represent the most significant evolution in Apple Intelligence to date.
Analyst Sentiment
Despite mixed reactions to the iPhone 17, Morgan Stanley analysts expressed optimism, suggesting that any short-term weakness could present a buying opportunity.
Market Implications
Apple’s recent launch highlights the company’s incremental innovation approach for 2025 while signaling that the more transformative updates—particularly in AI and potential foldable devices—are expected in the 2026 product cycle. Investors are advised to monitor upcoming developments closely as these future innovations could serve as stronger catalysts for the stock.