Jefferies analyst Edison Lee highlighted that iPhone sales in China fell 18.2% during the December quarter, with global sales declining by about 5%. The lack of enthusiasm for smartphone AI among U.S. consumers suggests that a significant upgrade cycle is unlikely soon. Loop Capital anticipates a substantial reduction in iPhone demand starting in the March quarter, which could worsen in the following quarters. Apple's first-quarter results are expected next week, and the company may face further challenges if its guidance disappoints.
Key takeaways:
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- Apple Inc. shares fell 3.2% on Tuesday, reaching their lowest point since November, due to analyst downgrades and concerns over iPhone sales.
- The company's market capitalization dropped by over US$110 billion, placing it below Nvidia Corp. for the first time since November.
- Analysts from Loop Capital and Jefferies downgraded Apple's stock, citing weak iPhone sales and competition in China as major concerns.
- Apple's recommendation consensus has decreased to 4.02 out of five, its lowest since May, with just over 60% of analysts recommending buying the stock.