Apple (AAPL) stock has recently experienced a decline in price, driven by reduced iPhone orders and weak demand, particularly in China. Despite this, Loop Capital analyst Ananda Baruah has maintained his hold rating on Apple stock but lowered the price target from 185 to 170. The stock fell by 0.9% to 169.99 in morning trades on the stock market.
Baruah projected that Apple’s revenue and earnings per share would decrease in 2024, marking the first decline since 2016. Consensus estimates for Apple’s upcoming quarters are also at risk, particularly for the June quarter due to soft iPhone shipments resulting from decreased demand and competition. Average selling prices for iPhones are flattening, and Apple is facing significant competition from Chinese brands like Huawei and Xiaomi.
However, potential positive catalysts for Apple stock could come from developments in generative artificial intelligence and the Vision Pro headset. Analyst John Donovan of Loop Capital has stated that Apple has reduced its iPhone builds based on supply chain checks in Asia. For more stories on consumer technology, software, and semiconductor stocks, follow Patrick Seitz on X (formerly Twitter) at @IBD_PSeitz.
