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An Apple store in Chongqing, China.
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Apple shares fell Tuesday after Jefferies downgraded the stock to an “underperform” from “hold” on Monday.
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Jefferies noted that flagging iPhone sales and weak demand for its artificial intelligence (AI) features in newer models would lead the tech giant to undershoot quarterly revenue forecasts.
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JPMorgan analysts on Tuesday stuck with an overweight call on Apple but downgraded their price target to $260 from $265, citing wariness about the company’s outlook.
Apple (AAPL) shares fell Tuesday after Jefferies downgraded the stock to an “underperform” from “hold” on Monday, as flagging iPhone sales and weak demand for its artificial intelligence (AI) features in newer models are expected to lead the tech giant to undershoot quarterly revenue forecasts.
Jefferies also cut its price target on Apple to $200.75 per share from $211.84 each.
Apple is due to report its first quarter 2025 numbers on Thursday, Jan. 30.
“We lower forecasts driven by weak iPhone sales and the general [consumer electronics] market and our reduced outlook for iPhone 17/18 due to slower AI uptake and commercialization,” Jefferies analysts wrote, adding that the brokerage expects Apple to miss its first-quarter 2025 revenue guidance of 5% growth. They also said the tech firm’s guidance for the March quarter “could also disappoint.”
Separately, JPMorgan (JPM) analysts on Tuesday stuck with an overweight call on Apple but downgraded their price target to $260 from $265, citing wariness about the company’s outlook.
Among their concerns: The strong dollar at a time of limited appetite for Apple products, and “flattish unit sales” given the current AI features, as well as weak China demand. They said Apple will continue to lose market share in China as it’s already “past its product cycle peak” and also the company’s premium phones don’t benefit from local government subsidies for low-to-mid-tier phones.
Apple shares fell sharply last Thursday as data from research firm Canalys indicated the tech giant lost its coveted position as China’s largest smartphone seller last year. Apple’s China iPhones aren’t equipped with its recently launched AI features.
The stock is down about 3.5% Tuesday at around $222.40 and have lost almost 12% in 2025.
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