Apple Stock Slumps 3.6% as Analysts Predict Persistent iPhone Weakness
2 min read
Apple (AAPL) shares took a major hit, dropping 3.6% – the largest decline since August – after being downgraded by Barclays and concerns arose about slowing iPhone 15 sales in China. Barclays analyst Tim Long contributed to the pessimism by noting weaknesses in iPhone volumes and mix, as well as a lack of bounce-back in Macs, iPads, and wearables. Long even expects the softness in iPhone sales to persist even after the launch of the iPhone 16, as it is not expected to bring significant upgrades.
In 2023, Apple’s iPhone revenue declined by a staggering $5 billion compared to the previous year. This downward trend can also be seen in sales of Macs, iPads, and wearables, which were all affected by rising inflation and interest rates. These struggles have further fueled concerns within Apple’s services business, as challenges related to App Store practices, the ongoing antitrust case against Google, and slowing growth in the coming years have come to light.
Amidst these troubles, Apple is currently entangled in a patent battle with medical device maker Masimo. The dispute revolves around Apple Watch’s blood oxygen sensor. However, there is a glimmer of hope on the horizon for the company. Apple’s upcoming launch event for the highly anticipated Vision Pro headset has the potential to transform its standing in the AR/VR space. Referred to as a spatial computer, the Vision Pro headset positions Apple as a front-runner in the next generation of computing devices.
Despite the challenges, Apple remains a prominent player in the tech industry with a strong presence in various product categories. Investors will be closely monitoring the company’s stock performance and future outlook as they navigate these turbulent times.
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