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Apple (AAPL) stock is sinking 4% after a research firm reported yesterday that sales of the company's iPhones in China had plunged last quarter. Meanwhile, two banks have downgraded the iPhone maker's shares recently.
Apple May Be Facing Major Problems in China
The number of iPhones handed over in China dove 18% in Q4 versus the same period a year earlier, according to Counterpoint Research. As a consequence, China-based Huawei Technologies Co. took over the top spot in the Asian country from AAPL, and the American firm's market share has fallen to about one-sixth. Additionally, AAPL is now number three when it comes to smartphone sales in China.
A wide view of an Apple store, showing the range of products the company offers.
Two Banks Cut Their Ratings on AAPL
Investment bank Jefferies downgraded the firm to Underperform. The investment bank believes that AAPL has sold fewer iPhones than expected. Moreover, a survey found that American consumers do not believe that the company's AI is "useful," Jefferies reported. As a result, the technology probably won't trigger a supercycle, the investment bank predicted, adding that the company's results for its March quarter may make the Street unhappy.
Meanwhile, Loop Capital downgraded AAPL to Hold. It predicts that the demand for Apple's iPhones will drop significantly during the current quarter before sinking much further over the subsequent six months.
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