Big new products typically lead to stock bounces for companies who announce them, but yesterday's iPhone announcement saw Apple's stock slide almost 3.5% in a single session. What gives?

In case you missed it (where you been?), Apple announced updates to its iPhone range yesterday in the form of the iPhone 17 family and the Ozempic-inspired iPhone Air. There were also a slew of new smart watches and some genuinely excellent-looking headphones.

But no matter how many times Apple CEO Tim Cook said the word "magical" from the stage in Cupertino, markets weren't buying it.

Apple's stock slid downwards from just north of US$234 a share at the open to a closing price of US$226 by the close of the session.

And the bleeding hasn't stopped yet, either. Apple's down another half a percent in pre-market trading.

Here's why the market is raining on Apple's annual parade.

Apple Intelligence (or, not)

It's no secret that Apple has been taking it in the teeth recently over its progress around AI.

Siri was the first voice-assistant technology to market in the smartphone wars back in 2010. But since then, the tech has been lapped by the likes of Alexa, Google Assistant and now the raft of voice-enabled AI services from the likes of ChatGPT and its ilk.

It's another chapter in the bad book of Apple’s AI journey. The road has been rocky, with the company plagued by bad headlines, internal reshuffles, and ultimately slowing innovation. The company has paused problematic features, retooled its marketing, injected fresh leadership energy, and openly explored external AI partnerships. All while trying to reassure investors and consumers of its long-term vision.

As the company always likes to say to customers and investors, it doesn't try to be first to market, it tries to be best. This often means that big, overhyped products - such as AI - can take a little while to find their feet in Apple products.

While yesterday's Apple event mentioned the Apple Intelligence product over and over, investors seemingly can't shake the feeling that it isn't quite enough.

No price increases amid tariff troubles

As the company lays out the features of its new products, everyone's mind turns to the same question: what's the price?

Investors wanted Apple to be charging higher prices for the new models - as they always do. Consumers, meanwhile, braced for the figure they'd have to part with for the new gear.

When it got down to brass tacks, Apple revealed that the price for the new iPhone 17 and iPhone Air models would be largely the same as they were for the iPhone 16 range when it first debuted last year.

iPhones are by no means a dime-a-dozen, with the most expensive model in the new range topping out at almost $4000.

But the news of no meaningful price increases, and therefore new new river of gold, means that investors were turned off following the event.

No price bumps on these new products may also mean that Apple is either looking to absorb increased costs from tariffs imposed on its products, or try to make them up somewhere else.

A mixed reception on designs and 'sacrifices'

Yesterday's announcements were a mixed bag. We saw the iPhone tick over from 16 to 17 with the base model and Pro models taking centre stage.

But in the middle of the line-up is the new iPhone Air. It's super thin, and the first new look for the iPhone in some time.

With that thinness, however, there have had to be some compromises. In particular, there's only one camera as opposed to the two on the base model and the three on the Pro model. The battery is projected to last as long as the phone it's replacing in the lineup - the iPhone 16 Plus - but compared to the new 17 models, it can be found wanting (at least on paper). The screen also doesn't have the same slick ProMotion 120Hz refresh rate you find on the base model 17, despite being more expensive.

Investors, however, wondered aloud whether consumers will want to make these perceived sacrifices, for the benefit of a much thinner design. And if we know one thing for sure, investors hate uncertainty.