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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