Apple’s New iPhone Announcement Got Traders to Buy the Rumour Then Sell The News
Markets were all hyped up before Apple’s big product announcement on September 9, but then all the excitement faded away as traders bought the rumour and then sold the news.
As usual, the latest whiff of an Apple launch got Apple loyal consumers ready to ditch their old models and upgrade to the latest iPhone on the market. Fans have been known to sleep outside Apple stores to be the first to get their hands on the new product – first come means first to be part of the latest, cutting-edge innovation that Apple has been linked to ever since Steve Jobs took to the stage and presented Apple as for those who ‘think different.’ But, the bigger the hype, the bigger the stock buy, followed by an even bigger sell.
This is a story that has unfolded again and again in trading history, and it is one every trader should know, study, and be ready to be part of and make part of their strategy.
Apple’s Big News – iPhone Air
On Tuesday, Pomme announced the first major redesign of the iPhone in years, with a thinner model called the iPhone Air.
It is thought to be the “biggest leap ever for iPhone,” according to CEO Time Cook, who felt the pressure for Apple to impress with its latest devices, as other big tech companies – like Nvidia – have been flexing their tech muscles and taking the lead with their business firmly planted in the AI sector.
The iPhone family has welcomed a new member to the family in the form of the iPhone 17 base model, which is more resistant to damage due to its ceramic shield display. Built to last longer, with a bigger battery and more memory, Apple has worked its magic to bring its customers into the future of phone technology.
But product magic doesn’t always translate into skyrocketing stock value.
Apple Shares React to News
Despite the buzz, Apple (AAPL) shares dipped about 1.5% after the announcement — dragging the stock nearly 4% lower year-to-date. It’s a signal that even a shiny new iPhone might not be enough to keep investors impressed.
Buy the Rumour, Sell the News Phenomenon
This is a textbook case of the “buy the rumour, sell the news” phenomenon – where traders jump in ahead of a big event on anticipation and hype, only to lock in profits or cut risk once the actual news hits. The excitement leading up to Apple’s launch had already been priced in, and when the reveal didn’t deliver a groundbreaking surprise, the smart money moved out. For traders, it’s a reminder that market moves are often driven more by expectations than reality.
How You Can Leverage This Pattern
Savvy traders don’t simply watch the hype — they trade it. “Buy the rumour, sell the news” isn’t a cliche; it’s a strategy.
When you see a major event coming (like an Apple launch), keep an eye on how price moves in the lead-up. If the market runs hot before the news drops, it could be your cue to position early — and consider exiting before the hype fades. It’s all about timing, sentiment, and knowing that in trading, expectations often hit harder than reality.
Summary Box
- Apple unveiled the iPhone Air and iPhone 17 on September 9, calling it the “biggest leap ever” — but the market wasn’t wowed.
- AAPL shares dropped 1.5% post-announcement and are down nearly 4% YTD.
- Traders followed the classic “buy the rumour, sell the news” pattern – capitalising on hype, then exiting once the news hit.
- Follow the news, make it part of your trading strategy and remember anticipation often moves prices more than the actual news.