Apple's foldable iPhone launch carries sell-the-news risk for investors

Apple is preparing for its biggest product event in years on Wednesday, but investors tempted to buy beforehand should look beyond the hype around its expected first foldable iPhone, as the stock may face a "sell-the-news" reaction. The event, starting at 1:00 PM ET, marks the first launch led by CEO John Ternus, who succeeded Tim Cook on September 1. Apple shares fell 1.2% to $316.22 on Tuesday but remain up about 16% this year, with Wall Street bracing for higher prices, a rich valuation, and potential disappointment. Analysts warn that pricing is a key risk, as rising memory costs may force Apple to raise iPhone prices, potentially triggering a "price shock" that hurts demand. Even a successful foldable launch could cannibalize existing premium iPhone sales rather than expand the user base, leaving investors questioning margins and incremental growth.