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Apple (NASDAQ:AAPL) shares continue to decline following a Jefferies downgrade to Underperform from Hold, driven by concerns about slowing iPhone demand and broader consumer electronics headwinds. The firm also cut its price target to $200.75 from $211.84.
Jefferies analysts, led by Edison Lee, predict Apple will miss its Q1 fiscal 2025 revenue growth target of 5% and guide for minimal growth in Q2, falling below consensus estimates. Slower AI adoption and delays in Apple's advanced packaging roadmap for future iPhones add to the concern.
New data from IDC shows iPhone shipments fell 4% year-over-year in Q1, while subsidies in China are expected to exclude most iPhone models due to pricing limits, potentially dampening demand. Meanwhile, Apple's budget iPhone SE4 may face tough competition from used iPhone Pro models and Android alternatives, limiting its potential.
As of 11:07 AM ET, Apple shares traded at $221.25, down 3.80%, reflecting growing investor worries. Earlier in premarket trading, shares were already down 2%. Apple is set to report its fiscal Q1 earnings on January 30, with expectations closely watched amid these challenges.
This article first appeared on GuruFocus.