The new iPhone, which features a high-resolution camera and the option of a jet-black glossy finish but notably lacks the traditional analog headphone jack, is not revolutionary, analysts said.
“Overall, we thought that the phone was an improvement over previous models, but not a game changer that will reignite a significant upgrade cycle,” Deutsche Bank analyst Sherri Scribner wrote in a note.
READ MORE: Apple unveils water-resistant iPhone 7
Apple shares, which closed up 0.6 percent on Wednesday when the new phones were launched, were down more than 2 percent at $106.04 in morning trading on Thursday. They had closed down nearly 2 percent last year on the day the 6s and 6s Plus were unveiled.
The iPhone 7 is priced at $649, the same as its predecessor, the 6s. The larger iPhone 7 Plus edition will retail for $769 – $20 more than the iPhone 6s Plus – and will feature two cameras, including a telephoto lens.
Wells Fargo expects Apple to sell between 14-15 million of the new iPhones in the first weekend as the phones will be released in more countries that in previous years. The company sold more than 13 million of the 6s and 6s Plus phones in the first weekend after their launch last year.
The new phones will start shipping in major markets, including the United States and China, on September 16. That would give Apple 14 days of sales this quarter, compared with two days for the iPhone 6s in the year-ago quarter.
The company said on Thursday it will not release first-weekend iPhone sales data, saying the number was more a reflection of supply than demand. IPhone sales account for more than half of Apple’s revenue.