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An Apple store in Chongqing, China.
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Shares of Apple fell on Tuesday after Jefferies downgraded the stock from ‘hold’ to ‘underperform’ on Monday.
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Jefferies noted that declining iPhone sales and weak demand for artificial intelligence (AI) features in newer models would cause the tech giant to undershoot quarterly revenue forecasts.
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JPMorgan analysts maintained their overweight on Apple on Tuesday but lowered their price target to $260 from $265, citing caution about the company’s prospects.
Apple (AAPL) shares fell on Tuesday after Jefferies downgraded the stock from ‘hold’ to ‘underperform’ on Monday, as weak iPhone sales and weak demand for artificial intelligence (AI) features in newer models are expected to lead the tech giant below quarterly sales will remain forecasts.
Jefferies also lowered its price target for Apple from $211.84 per share to $200.75 per share.
Apple will announce its first quarter 2025 results on Thursday, January 30.
“We are lowering forecasts due to weak iPhone sales and overall numbers [consumer electronics] market and our lower outlook for the iPhone 17/18 due to slower AI adoption and commercialization,” Jefferies analysts wrote, adding that the brokerage expects Apple will miss its 5% growth forecast for the first quarter of 2025 They also said the tech company’s expectations for the March quarter “could also disappoint.”
Separately, JPMorgan (JPM) analysts maintained their overweight rating on Apple on Tuesday, but lowered their price target to $260 from $265, citing caution about the company’s prospects.
Among their concerns are the strong dollar at a time of limited interest in Apple products, and “flat unit sales” given current AI characteristics, as well as weak Chinese demand. They said Apple will continue to lose market share in China because the country has already “past the peak of the product cycle” and the company’s premium phones also do not benefit from local government subsidies for lower-to-mid-range phones.
Shares of Apple fell sharply last Thursday after data from research firm Canalys showed the tech giant lost its coveted position as China’s top smartphone seller last year. Apple’s Chinese iPhones are not equipped with the recently launched AI features.
The stock fell about 3.5% on Tuesday around $222.40 and has lost almost 12% in 2025.
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