Retail investors took profits ahead of Apple’s iPhone Duo launch, Webull UK says

Retail investors approached Apple's ↗ 1.75% "Surprise and Shine" product event on Wednesday with caution rather than enthusiasm, according to Webull UK chief executive Nick Saunders, who said trading data pointed to profit-taking ahead of the launch rather than a rush to buy the hype.

Muted Retail Response

"It looks as though investors had been taking profits ahead of the event, suggesting a reluctance to buy in to hype," Saunders told Investing.com. He attributed the tepid reaction to a broader lack of enthusiasm for tech among retail traders, noting that many had trimmed positions before Apple unveiled its first foldable iPhone, the $1,999 iPhone Duo, alongside the iPhone 18 Pro lineup.investing+1

Saunders cautioned against reading too much into the pullback. "Apple stock drops 70% of the time following a new product launch with stock often regaining ground in the next month or so," he said. Research cited by Yahoo Finance supports the pattern, finding Apple shares have gained in the 60 days following an iPhone reveal 17 times dating back to the original 2007 launch.finance.yahoo+1

Wall Street and Retail Diverge

While Saunders described a cautious retail mood, sentiment on Stocktwits turned bullish in the 24 hours after the event, with message volume rising to "high," according to a TradingView report. One retail trader called the Duo reveal a "modern day Steve Jobs moment" and predicted Apple's stock could "climb slowly to $400". Apple shares traded roughly 3% higher on Thursday afternoon.tradingview

Wall Street reaction was mixed. Morgan Stanley noted the Duo's $1,999 price came in below many investor expectations of $2,300 to $2,500, suggesting Apple is "prioritizing adoption rather than maximizing near-term economics". JPMorgan maintained an Overweight rating, while Jefferies, which carries an Underperform rating, warned that Apple may be protecting volume at the expense of margins as memory costs rise. UBS held a Neutral rating with a $296 price target.tradingview

AI, Not Hardware, Is the Real Test

Saunders argued that the Duo "made for a great photoshoot but was not the main event." Instead, he said investors are focused on Apple's AI strategy, particularly the rollout of the "Apple Intelligence" version of Siri. Evercore ISI highlighted updates to Siri's ability to find personal context across apps, maintaining an Outperform rating with a $365 price target.investing+1

"Hardware does not move markets any more," Saunders said, adding that the key question is whether combining hardware and AI can justify a higher-priced product category.investing