Apple’s new iPhone X unveiling went off pretty well Tuesday, with lots of technical and fun features that will likely please users. But, while the phone itself proved popular in the post announcement news, the Apple stock didn’t. It lost all the gains made ahead of the announcement, ending the day lower.
The iPhone X certainly packs in a lot of new features:
- Edge-to-edge, OLED screen.
- Facial recognition.
- Wireless charging.
- Upgraded camera.
- Augmented reality with animoji.
But, for all that, investors ended the day less impressed than when they began it. There are two main reasons the Apple stock ended the US trading day 0.4% lower; the release date and reliability of the facial recognition feature.
Earlier in the year, Apple had stated the iPhone X would be ready for distribution in its fiscal Q1, which is the final quarter of a calendar year. However, orders for the phone won’t be taken until October and it won’t be available to users until November.
While that is in line with Apple’s previous guidance, with the iPhone 8 and iPhone 8 Plus to be released in the traditional Apple new product release month of September, there’s uncertainty over how many Apple fans will wait for the high-end and more expensive – albeit impressive – iPhone X.
In addition to that, the facial recognition tech hit a glitch during the presentation. Apple CEO Tim Cook had to use a back-up phone after the first demo phone remained unlocked after two attempts.
The Apple stock fell on that glitch before recovering during the two-hour unveiling. However, the seeds of doubt were sown and concerns that the facial recognition feature may not work as well as it should, remain. Something only time and users will be able to verify or brush aside.
Despite those worries, Apple’s own guidance suggests its confident the iPhone X will be popular and help generate profits. That’s in addition to anticipated upbeat sales from the iPhone 8 and iPhone 8 Plus.
The Apple stock today remains lower in pre-trading. However, only its future performance will be proof of the success of its newest and re-invented iPhone offering.