Apple at 30x Forward Earnings, above S&P – eToro Weighs In on Launch

Did Apple wow Wall Street with its new product release? Not really – but we did see four new iPhone models unveiled: the base iPhone 17, the superthin Air, the high-end Pro, and the Pro Max. Apple is not reinventing the wheel with the iPhone 17, but the new ‘Air’ model shows it can still set standards for the smartphone industry.

Josh Gilbert, Market Analyst at eToro, commented: “Apple has always had a unique ability to turn incremental updates into must-have products, and the iPhone Air is the clearest example of that in this launch. At just 5.6mm thick and weighing 165 grams, it’s Apple’s boldest hardware move in years and sets a new benchmark in smartphone design. While we didn’t get the much-anticipated foldable iPhone, Apple’s strategy here is about deepening ecosystem loyalty and flexing its pricing power.”

Beyond smartphones, Apple also refreshed its Watch lineup and updated the AirPods Pro for the first time in three years. The new AirPods are smaller, lighter, and deliver far stronger noise cancellation than their predecessors, while also introducing on-device translation – a feature that underscores Apple’s push to remain a leader in consumer technology. With AirPods already a USD $20 billion business, these upgrades carry significant financial weight.

The theme of the event, “Awe Dropping,” reflects Apple’s strategy of delivering just enough innovation to entice upgrades and keep its ecosystem sticky. With over 1.5 billion iPhones in use worldwide, even modest upgrade cycles could generate substantial demand in the next 12–18 months.

However, questions remain over Apple’s long-term AI strategy. While big tech rivals are sprinting ahead in artificial intelligence, Apple has yet to outline a clear plan – a gap reflected in its share price performance over the past year. With no updates on Apple Intelligence or broader AI integration, concerns around Apple’s positioning in the AI race persist.

Currently, Apple trades at around 30x forward earnings, compared with the S&P 500’s 23x multiple and well above its own 10-year average of 20x. With this premium valuation, today’s release – while significant – may not be enough to justify the gap without a stronger AI narrative.