KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Key Takeaways:
Apple launched the iPhone 17 lineup, including the new iPhone Air, while keeping prices unchanged despite tariff pressures.
The company is expected to absorb over US$1 billion in tariff costs this quarter, signaling a strategy to defend market share.
Apple stock fell 1.6% post-event, reflecting investor caution on margins and unit growth.
Supplier risk: Broadcom (-2.3%) and Qualcomm (-1.1%) declined as Apple unveiled new in-house connectivity chips.
iPhone 17 Lineup: A Pricing Signal
Apple unveiled the iPhone 17, 17 Pro, and iPhone Air, alongside the Apple Watch refresh and AirPods Pro 3.
iPhone Air: thinner design, high-density battery, new A19 Pro processor. Starting price US$999, slotted between base and Pro models.
iPhone 17: starts at US$799 for 256GB, same as last year’s model but with double the base storage.
iPhone 17 Pro: US$1,099 for 256GB, unchanged vs. last year but removes the cheaper US$999 option.
Other devices, including AirPods Pro 3 and Apple Watch Series, also maintain prior pricing.
By holding the line on prices, Apple is prioritizing upgrade adoption over near-term margin expansion, a key move given global consumer caution and competitive threats.
Tariff Overhang and Margin Pressure
Apple projects that Trump’s tariffs could cost the company over US$1 billion this fiscal quarter. Instead of passing costs to consumers, Apple is leveraging its scale to absorb the hit, aiming to sustain demand momentum against rivals like Samsung (Galaxy S25 Edge) and domestic Chinese brands.
Analysts suggest this pricing discipline could cushion sales in the US and China, though margins may tighten in the near term.
Competitive and Strategic Implications
Samsung & Foldables: Analysts view the iPhone Air as a transitional step toward foldable devices, a segment where Apple risks losing share in China.
AI Positioning: Apple leaned on hardware efficiency (A19 Pro, N1, C1X chips) rather than competing head-on in the AI arms race. Integration with OpenAI remains central to its device AI strategy.
Supplier Risk: The N1 Wi-Fi chip and C1X modem replace Broadcom and Qualcomm components, pressuring supplier revenue outlooks.
Investor View
Apple’s unchanged pricing strategy reflects a defensive stance against tariffs and competition, even at the cost of near-term margin pressure. For investors:
Watch early adoption of the iPhone Air to gauge whether it re-energizes demand.
Monitor Apple’s gross margin guidance in upcoming earnings.
Supplier exposure (AVGO, QCOM) remains a key second-order market risk.
Bottom Line: Apple is betting that stable pricing will drive unit growth in a tariff-heavy environment. Near-term stock weakness (-1.6%) shows investor skepticism, but sustained demand through year-end upgrades could support a recovery.
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