Apple Stock Falls After iPhone 17 Event: Key Announcements, AI Gaps, and Market Reactions
11th September 2025, Kathmandu
Apple’s much-anticipated iPhone 17 launch event failed to dazzle investors, sending Apple’s stock down 1.7% to $234.
While Cupertino introduced new iPhones, Apple Watches, and AirPods, the spotlight was dimmed by the lack of meaningful AI innovations, leaving many to question Apple’s position in the fast-moving artificial intelligence race.
Apple Stock Falls After iPhone 17 Event
Apple iPhone 17 Lineup: Sleek Hardware, Light on Intelligence
The iPhone 17 series includes:
iPhone 17 – $799
iPhone 17 Air (thinnest iPhone ever) – $999
iPhone 17 Pro – $1,099
iPhone 17 Pro Max – $1,199
The iPhone Air drew attention for its ultra-thin design, reintroducing Apple’s obsession with sleek hardware. The camera also received upgrades with Center Stage, but critics noted that the event lacked any bold AI-first features. Siri was notably absent, and Apple recycled AI references from WWDC such as Visual Intelligence and on-device models.
AirPods Pro 3 Steal the AI Show
The most notable AI innovation came not from iPhones, but from AirPods Pro 3, now featuring real-time Live Translation at $249. Apple also refreshed its Watch lineup:
Series 11 – $399
Ultra 3 – $799
SE 3 – $249
Health monitoring and battery improvements were emphasized, alongside software updates with iOS 26 and macOS Tahoe.
Analysts: Apple Lagging Behind Google in AI
Industry analysts argue Apple is falling behind rivals. Google’s Pixel 10 already ships with AI-rich features, and Apple’s next-gen Siri is delayed until 2026. Reports suggest Apple may even partner with Google Gemini or other third-party AI providers to catch up.
Despite strong hardware refinements like Liquid Glass design and improved cameras, the lack of AI progress rattled both Wall Street and consumers. Still, Apple has a track record of waiting to strike at the right moment—suggesting a potential AI comeback in future cycles.
Cognition AI Raises $400M at $10B Valuation
Outside Apple, the AI market is heating up fast. Cognition AI, the startup behind coding agent Devin, raised $400M led by Founders Fund, reaching a $10.2B valuation. Unlike autocomplete tools, Devin can run tests, manage projects, and ship production-ready code. ARR skyrocketed from $1M in 2024 to $73M in mid-2025. Customers include Goldman Sachs, Citi, Dell, and Cisco.
Reflection AI Eyes $5.5B Valuation With Nvidia-Backed Round
Founded by ex-DeepMind researchers, Reflection AI is reportedly closing a $1B round at up to $5.5B valuation, led by Nvidia and Sequoia. The company’s research agent Asimov aims to automate complex coding while building toward superintelligence—placing it in direct competition with OpenAI, Anthropic, and Meta.
Nuclearn Raises $10.5M to Bring AI Into Nuclear Energy
In the energy sector, Nuclearn raised $10.5M to integrate AI into nuclear reactor workflows. Already deployed in over 65 reactors, its tools automate documentation and repetitive tasks while keeping human oversight intact. The approach promises efficiency but raises concerns about normalization of AI in a zero-error industry.
The Bigger Picture: Apple Stalls, AI Startups Surge
This week underscored a stark divide: Apple’s hardware-first strategy rattled investors while AI-first startups like Cognition, Reflection, and Nuclearn attracted billions.
Apple may look “thin on intelligence” today, but history shows its strategy often favors timing over speed. If the company applies that playbook to AI, the payoff could be massive. Until then, the iPhone 17 launch highlights Apple’s AI gap in a world where intelligent agents are already reshaping industries.
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