Shares of tech giant Apple fell in Tuesday’s trading session after analysts downgraded the stock due to weak iPhone sales and a lack of interest in AI products among consumers. The downgrades included a reduction in price target to $200.75 and a revised rating from Buy to Hold with a price target of $230 per share.
Apple’s struggles in China were a major factor in the downgrades. iPhone sales in the region fell between 15% and 20% year-over-year as products from Huawei and Xiaomi continue to gain popularity. The overall market share for iPhones fell roughly 1% year-over-year in Q4 to 23%, despite a 3% rise in smartphone shipments.
The company’s push into AI is not paying off as expected. Many analysts had initially anticipated that Apple’s AI platform would drive a sales supercycle as consumers upgraded to get access to AI features. However, current estimates suggest that this may not actually materialize.
Overall, analysts have a Moderate Buy consensus rating on Apple stock based on 19 Buys, six Holds, and four Sells assigned in the past three months. After a 15% rally in its share price over the past year, the average price target implies 9.8% upside potential.
The average price target of $244.36 per share indicates potential for growth. Analysts have assigned various ratings to Apple stock, with some indicating a Buy and others a Hold or Sell. The company’s performance and future prospects will be closely watched by investors and analysts alike.
