On Tuesday, Apple stock experienced a decline after a Wall Street firm adjusted its estimates for the company’s March quarter. This adjustment resulted from sales-channel checks that demonstrated lower iPhone sales and a decline in China. Despite the decrease in iPhone sales, there was a slight increase in revenue from iPad and Mac computer sales.
Needham analyst Laura Martin mentioned that Apple’s growth outlook is anemic, or even negative, and that cost increases to fund generative artificial intelligence stand as the primary obstacles preventing new investors from buying AAPL. She noted significant challenges that the company faces, including competition from other technology companies, rising costs of production and research and development, and ongoing trade tensions between China and the US.
For the March quarter, Martin estimates that Apple will report hardware sales of $67.6 billion, a 9% decrease year over year, and services sales of $23.3 billion, an 11% increase. She predicts iPhone sales of $46.6 billion, a 9% decrease year over year. Martin’s model for Apple shows earnings per share of $1.51, a 1% decrease, on total sales of $90.8 billion, a 4% decrease for fiscal Q2. Analysts polled by FactSet are expecting earnings of $1
