Apple Stock Downgraded as Barclays Warns on Cooling iPhone Demand
Apple Inc. has received a downgrade from Barclays Plc as the bank’s analysts express concern over soft demand for the tech giant’s latest iPhone. The move by Barclays comes as a blow to Apple, with analysts led by Tim Long cutting their rating on the company to underweight and reducing the price target to $160 from $161, which implies a potential 17% decline over the next year. As a result, Apple’s stock dropped by as much as 1.4% in premarket trading on Tuesday.
In a note, the Barclays analysts stated, We expect reversion after a year when most quarters were missed, and the stock outperformed. Our checks remain negative on volumes and mix for iPhone 15, and we see no features or upgrades that are likely to make the iPhone 16 more compelling.
While Apple’s shares soared around 50% to a record high last year, reaching a market value of $3 trillion, doubts have now arisen as to whether the company will be able to replicate such substantial gains due to rising competition from Huawei Technologies Co. and a Chinese government crackdown on foreign-made devices.
With Barclays now placing an underweight rating on Apple, the company currently has a total of five sell or equivalent ratings, as compiled by Bloomberg. This stands in stark contrast to the 34 buys and 14 holds currently in place. The stock’s consensus price target suggests a return of just 3.6% over the next year.
As investors ponder Apple’s outlook, all eyes will be on whether the tech giant can sustain its position against a backdrop of increasing challenges. The downgrade from Barclays highlights growing concerns over demand for the iPhone, as well as rising competition from Chinese competitors. With a multitude of factors at play, Apple will need to carefully navigate these challenges to maintain its position as a market leader in the highly competitive smartphone industry.
In an ever-changing market landscape, the success of Apple’s future flagship devices will be pivotal to the company’s performance. As analysts and investors continue to assess the present and future of the tech giant, only time will tell whether Apple can overcome the obstacles it currently faces and continue to deliver innovative products that capture consumer interest.
Please note that this article is a compilation of market analysis and does not reflect an endorsement or recommendation of any investment decisions. It is advised that readers conduct their research and consult with financial professionals before making any investment commitments.
