Apple Stock Listless After Tech Giant’s Newest iPhone Unveil: $599 Model Fails To Rev Up Retail Sentiment

Apple, Inc. (AAPL) announced the iPhone 16e, the most affordable model of the latest iteration, on Wednesday, but its stock failed to gain any appreciable momentum.

The company said the iPhone 16e offers powerful capabilities at an affordable price. Powered by the A18 chip and armed with Apple’s in-house Apple C1 cellular modem, it is built for Apple Intelligence. 

The iPhone 16e comes with a 48MP Fusion camera and has an integrated 2x Telephoto. 

When outside cellular and Wi-Fi coverage, Apple’s satellite features, including “Emergency SOS, Roadside Assistance, Messages, and Find My via satellite,” help users stay connected and get assistance.

The iPhone 16e will be available in two matte finishes—black and white. Preorders for the gadget begin Friday and it will be available to customers starting Feb. 28.

Apple’s vice president of Worldwide iPhone Product Marketing, Kaiann Drance, said, “iPhone 16e packs in the features our users love about the iPhone 16 lineup, including breakthrough battery life, fast performance powered by the latest-generation A18 chip, an innovative 2-in-1 camera system, and Apple Intelligence.”

The iPhone 16e has 128GB, 256GB, and 512GB storage capacities and costs a buyer $599 or $24.95 per month for 24 months. Trade-in and carrier offers are also available, which will further reduce the price.

Commenting on the launch, Deepwater Asset Management’s Gene Munster said the iPhone 16e is priced $100 more than the previous iPhone SE but lower than the $799 entry price for the iPhone 16.

The tech venture capitalist expects the 16e model to account for 10% of the revenue, surpassing the SE model, which makes up about 7%.

According to Munster, the incremental revenue should help Apple report upside to current Street expectations of 1% year-over-year iPhone growth in fiscal year 2025, potentially ringing in growth of 3% or more.

He also expects the shift away from Qualcomm, Inc. (QCOM) to boost Apple’s margin

On Stocktwits, retail sentiment toward Apple stock remained ‘neutral’ (48/100), with the message volume remaining ‘low’ amid the launch.

Unperturbed by the lackluster stock reaction, a retail watcher said Apple is a “safe core holding.”

Another user, however, did not see merit in the ‘low-cost’ pitch for the newest iPhone.

Apple stock traded up 0.06% at $244.61 by Wednesday noon. The stock is down more than 2% since the start of the year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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