In This Article:
NurPhoto / Contributor / Getty Images
Kew Takeaways
-
Citi analysts lowered their expectations for iPhone sales this year after Apple pushed back the launch of AI-driven Siri features to 2026.
-
Some new features were expected to be released as soon as April.
-
The analysts maintained a "buy" rating for Apple's stock, however, citing progress in rolling out Apple Intelligence in China.
Apple’s (AAPL) decision to delay the rollout of certain AI-driven Siri features could hold back iPhone sales, analysts at Citi said Monday.
A more powerful Siri with “on-screen awareness, personal context and deep app integration” could have been a driver of iPhone sales this year if it had come out this spring, the analysts said. However, Apple said Friday it expects the updates to its voice assistant to be released later, sometime “in the coming year.” As a result, Citi now projects iPhone sales to grow 2% to 232 million units in 2025, down from 5%.
Still, the analysts kept their “buy” rating and $275 price target for Apple's stock, above the consensus target of $255 compiled by Visible Alpha. They pointed in part to “progress in rolling out Apple Intelligence in China,” where it has so far been unavailable. Apple has touted Apple Intelligence as a driver of record iPhone upgrades, with the new iPhone 16 performing better in markets where the service is available.
Apple shares slid nearly 6% to about $225 intraday Monday amid a widespread market selloff on concerns about the economy, with Citi’s target suggesting over 20% upside. The stock has added close to a third of its value over the past 12 months.
Read the original article on Investopedia