Apple Chips Unveiled: Market Reaction Disappoints

Apple's Event and the Public Markets: A Disconnect

Welcome back to TechCrunch’s ongoing analysis of how public market reactions often seem indifferent to announcements made by Apple during its events.

Frequently, Apple’s stock performance appears more influenced by broader economic factors than by news originating from within the company. It is uncommon for Apple’s stock to demonstrate gains relative to the Nasdaq Composite following its product reveal presentations.

The Puzzle of Market Response

This consistent pattern is rather surprising. A possible explanation is that information regarding Apple’s upcoming products is so extensively leaked that market expectations are already factored into the company’s valuation.

However, this explanation may not be entirely comprehensive. While necessary, it might not fully account for the market’s reaction, particularly given the significant news Apple unveiled today concerning its PC chip lineup.

New Chips and Pricing

Apple detailed the new M1 Pro chip, and notably, introduced the M1 Max chip, which garnered considerable attention. Despite the somewhat dated naming convention, the M1 Max chip represents a remarkably impressive technical achievement.

Furthermore, Apple is integrating these new chips into a range of computers offered at price points exceeding initial expectations.

Stock Performance During the Event

Considering this – innovative hardware and the potential for increased revenue per computer – one might anticipate a positive market response. However, Apple’s stock largely mirrored the Nasdaq’s performance during the event, which occurred between 1 pm and 2 pm, as illustrated in the following chart:

The chart reveals that Apple’s initial decline after 1 pm was steeper than that of the broader Nasdaq tech index. However, Apple subsequently recovered at a similar rate, resulting in a negligible overall change in its stock performance during the event.

A Frustration for Engineers

One could understand the frustration of an Apple engineer witnessing this outcome. The new chips represent a significant advancement, potentially rectifying years of shortcomings in the market.

Despite this, Wall Street appears largely unmoved.

This lack of recognition is, to say the least, disheartening.