Apple (AAPL) stock recently suffered a 0.9% drop in morning trading after a Wall Street investment firm reduced its price target due to decreasing iPhone orders and weakened demand, particularly in China. Loop Capital analyst Ananda Baruah maintained his hold rating on the stock but lowered his price target from 185 to 170.
Baruah projected that Apple will experience a decline in its overall revenue and earnings per share for the first time since 2016. The analyst noted that iPhone shipments are too soft due to declining demand and increased competition from Huawei and Xiaomi. Additionally, the average selling prices for iPhones have flattened for the first time in years, further contributing to the challenges faced by Apple.
Despite these challenges, Baruah identified potential positive catalysts for Apple stock, including advancements in generative artificial intelligence and the Vision Pro headset. Furthermore, Loop Capital analyst John Donovan reported that Apple has significantly reduced its iPhone builds based on supply chain checks in Asia. The company cut its iPhone orders forecast for 2024 to 199 million units, down 7% to 8% from previous targets, contributing to Apple stock’s more than 11% decline year-to-date.
