Will Apple bring down the market?

AAPL's recent decline is very small compared to other technology stocks. It is nothing more than hyping up the launch conference on September 9. Many institutions are still hyping how the iPhone 16 will be epoch-making. But think about it, a few months ago, AAPL was still clamoring for the launch. A blockbuster AI product, but after months of speculation, it was finally announced that it would cooperate with OpenAI. This does not exactly mean that Apple is not good at AI. I think it is a bit foolish to expect this conference to save the U.S. stock market.

Mark Gurman, a well-known Bloomberg reporter who follows Apple news, expressed three concerns about Apple AI: ① Apple Intelligence is not perfect enough; ② The initial version will lack many features Apple released in June this year, including ChatGPT; ③ Apple Intelligence is not available in the EU.

I also give the fourth biggest concern: Apple and China's Huawei hold press conferences on the same day.

According to Gurman, the EU is a key region for Apple, covering Italy, France, Spain, Sweden and Germany. Nor was it ready to enter another important overseas market: China. Although AI is an exciting new field for tech enthusiasts, the vast majority of consumers are not well-versed in it. Many of them didn't even understand why they needed Apple Intelligence, and it took Apple months to explain the benefits of the technology. This is a problem. Institutions are exaggerating, saying that iPhone 16 sales will increase by 15% due to Apple Intelligence. Buffett liquidated half of AAPL, causing the market to plummet. However, institutions are forced to brag about Apple. Not to mention how powerful this feature is, Apple Intelligence alone cannot be used in the EU and China for the time being. The growth of iPhone 16 is worth considering.

Huawei, AAPL's biggest competitor in the Chinese market, has launched a three-fold screen this time, and the number of pre-orders has exceeded 3 million. Regardless of the performance of this mobile phone, the price is definitely far higher than AAPL, and it is different from most mobile phones on the market, which satisfies curiosity needs very well.