Apple Investors Unfazed by Tepid Demand for AI-Powered iPhone

  • Recent stock gains reflect optimism about an upgrade cycle
  • Stock seen as haven due to reliable earnings, strong cash flow
Apple iPhone 16 Plus phones.

Photographer: Victor J. Blue/Bloomberg

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A tepid response from shoppers to the iPhone 16 has not dented investors’ enthusiasm for Apple Inc. shares, which have enjoyed a multi-month rally in anticipation of the launch.

The model went on sale this month, though the highly touted artificial-intelligence tools won’t arrive as software updates until October. Data on pre-orders and lead times have been cautious, analysts say, suggesting the most optimistic expectations for an upgrade cycle may be out of reach at the moment.