Takeaways from Apple’s product event: Is it time to upgrade?

Apple Inc. (NASDAQ: AAPL) showed several new enhancements during its product event on September 9, 2025. What happened during the event and what are analysts expecting going forward?

Apple CEO Tim Cook at the September 9, 2025 product release event

Overall, this product update was iterative. Apple’s areas of focus seemed to be on driving faster speed, lighter weight, more efficiency and higher performance for the new wearables and iPhone models. The stock did not react much during the event but is down 4% since the event on September 9, 2025. The market seems to be underwhelmed with the enhancements. In addition, there was little emphasis on AI and how the company may start to leverage its AI capabilities to drive innovation and stickiness in its ecosystem.

 The event kicked off with air pods and apple watch updates. The wearables segment is projected to generate $35.5 sales this fiscal year. Based on Visible Alpha consensus, this segment is projected to grow low single digit over the next several years and to generate a lower 33% gross margin (vs the iPhone at 40%). Will these accessories help to drive higher sales and profitability longer-term through increased usage of services?

The new iPhone Air launched at the September 9, 2025 product release event

Apple released the new iPhone Air, a very thin and light device with similar capabilities as a full-size model. The other 17-series iPhones have upgraded cameras, display, durability and battery life but no meaningful newness. The Pro is targeting content creators and may be popular with users that post frequently. This holiday season will be important for the Apple upgrade cycle. Based on Visible Alpha consensus, Apple is expected to sell 233 million iPhone units, including 27 million 17-series and 150 million 16-series and generate $209 billion in iPhone revenue this fiscal year. The iPhone 17-series will be available on September 19, 2025, for similar price points as the earlier series. Promotional trade-ins at carriers for 13-series and above are offering an $1100 credit (offsetting monthly payments, not lump sum) for the 17 Pro. In FY 2026, the 17-series demand is expected to jump and for Apple to sell 160 units and generate $218 billion in revenue. Will these new enhancements drive user demand enough to meet or exceed these expectations for unit sales?

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.