Apple's stock turns positive for year after iPhone 17 launch

Apple shares have erased their 2025 losses, now up over 2% for the year, driven by robust demand for its newly launched iPhone 17 lineup, Apple Watch, and AirPods models. Bank of America analysts highlight significantly extended ship times for the redesigned iPhone Air, signaling strong initial sales, including in the critical China market. While Apple was the last tech megacap to turn positive for the year amid ongoing concerns about its lagging AI investments and delayed Siri enhancements, the new product releases do incorporate AI features, such as translation in AirPods Pro 3.

Analysis

Apple (AAPL) shares have erased their 2025 losses, turning positive for the year with a gain of over 2% following a 4% rally. The primary catalyst is the launch of its new iPhone 17, Apple Watch, and AirPods, which are showing signs of strong consumer demand. Bank of America analysts substantiate this, noting that ship times for the new iPhone are significantly extended at 18 days, compared to 10 days for the prior year's model, with similar strength observed in pre-orders from the key China market. Despite this positive product cycle momentum, Apple remains the laggard among tech megacaps for the year. This underperformance stems from investor concerns regarding its comparatively lower spending on AI infrastructure and a perceived strategic delay relative to rivals like Google and Microsoft. The postponement of a key Siri update to 2026 has intensified these concerns. However, Apple is embedding AI directly into its new hardware, such as real-time translation in the AirPods Pro 3 and machine learning-driven health warnings in the Apple Watch, indicating a product-centric AI strategy that contrasts with the data center-heavy approach of its peers.

Key Decisions for Investors

• The strong initial demand for the new iPhone lineup, evidenced by extended delivery times, presents a potential catalyst for near-term revenue beats and could support the stock's recent positive momentum.
• Investors should remain cautious of the persistent narrative that Apple is lagging in the broader AI race, as the delay in Siri's enhancement and lower infrastructure spending relative to peers could cap valuation multiples.
• Consider whether Apple's embedded, product-focused AI features can sufficiently counter concerns about its lack of a large-scale generative AI offering, as this will be a key determinant of future performance against competitors.