Apple has received a pair of analyst downgrades on concerns over iPhone sales, as the nascent Apple Intelligence rollout thus far fails to act as a growth catalyst.
Ryan Vlastelica for Bloomberg News:
The company was downgraded to hold at Loop Capital and cut to underperform at Jefferies, which became a rare firm with the equivalent of a sell rating on the stock. Just 8.5% of the analysts tracked by Bloomberg have a bearish rating, while about 63% have the equivalent of a buy.
Jefferies analyst Edison Lee writes that recent weakness in iPhone sales has been worse than expected, with the China market a particular concern. Independent research indicates that iPhone sales sank 18.2% in China during the December quarter, while global unit sales fell about 5% in the final quarter of last year amid higher China competition.
Citing a third-party survey, Lee added that “US consumers do not yet find smartphone AI useful,” meaning that it is “unlikely to kickstart a super upgrade cycle anytime soon.” Given these trends, he wrote, Apple’s March quarter guidance could disappoint.
Concurrently, Loop also cite concerns on iPhone weakness, expecting a “material iPhone demand reduction” beginning in the March quarter “but materially amplifying” in the subsequent two quarters…
Apple is scheduled to report its first-quarter results next week.
MacDailyNews Take: As we wrote on January 3rd, the late-December-early January pump and dump ahead of earnings is in full operation. 😄
China and iPhone “concerns” have long been a favorite theme for those looking to knock down AAPL.
For example, here’s how late 2024/early 2025’s “knock it down, accumulate, profit” story unfolded:
• Apple’s iPhone, other foreign smartphone sales in China drop 44.25% YoY in October – November 27, 2024
• IDC: Apple iPhone is No.1 in China smartphone market for first time ever – January 25, 2024
• Apple beats the Street on top and bottom lines – February 1, 2024
As we’ve long said, Wall Street is a game: play it well or don’t play it at all. – MacDailyNews, March 20, 2007 (on which day AAPL closed at the split-adjusted price of $2.79 per share)
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What the analysts say doesn’t really matter. What matters is Apple’s results. We will see in due time.
Besides that: Unfortunately Apple has lost its momentum that it had with Siri years ago.
The trump effect.
Dump DEI, load up that discussting queer alter in Apple’s courtyard, learn to stop leeching off Jobs inventions forever, and invent something new for a change goddmanit.