Apple Stock Falls as Siri AI Blocked From EU and China Markets
What You Need to Know
- Apple stock fell nearly 2% on June 8 despite hitting all-time intraday high during WWDC keynote.
- Siri AI features blocked in EU and China, representing roughly 35% of iPhone shipments.
- Wall Street analysts raised price targets to $350-$360, betting on eventual regulatory clearance in blocked markets.
- Apple’s Q2 revenue of $111.2 billion and services high of $31 billion remain unchanged by keynote.
Apple hit an all-time intraday high of roughly $317.40 on June 8 during the WWDC keynote, then closed down nearly 2% the same day. By June 10, shares had slid to around $290.55, erasing about $25 per share in three sessions. The market’s reaction had less to do with what Apple announced and more to do with where it cannot sell the feature.
The core problem is geographic. Siri AI is blocked on iPhone and iPad in the European Union, almost certainly because of Digital Markets Act obligations Apple has not yet satisfied, and a separate regulatory situation delays the rollout in China. Morgan Stanley estimates those two markets together represent roughly 35% of trailing 12-month iPhone shipments. That is a meaningful slice of the addressable market for a feature that was supposed to drive the next upgrade cycle.
Analysts Are Not Selling
Wall Street’s response to the same keynote was almost the opposite of the market’s. TD Cowen raised its target to $350, Maxim Group lifted to $350 from $310, and Morgan Stanley moved to $360, all with Buy or Overweight ratings. JPMorgan reiterated Overweight at $325. UBS held Neutral at $296, the only major firm keeping a cautious stance.
The disconnect makes more sense when you look at what the stock is actually pricing. Apple reported $111.2 billion in Q2 revenue and a $31 billion all-time high in services. None of that changes based on a keynote. Maxim’s upgraded fiscal 2027 projections rest on the assumption that completely unavailable in the EU and China at launch does not describe the feature’s permanent state, and that regulatory clearance eventually follows.
The “buy-the-rumor, sell-the-news” framing fits here. Shares had already climbed heading into WWDC, and the EU and China exclusions gave traders a clean reason to take profit. What actually matters for the stock is whether Siri, rebuilt with a new AI architecture, clears those regulatory hurdles before the September iPhone event, which will also be the first major keynote under incoming CEO John Ternus.
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