Apple Stock Downgraded Again – iPhone Sales a Major Concern

Apple Inc. has been downgraded again, this time by Oppenheimer, as concerns grow over weak iPhone sales. The downgrade lowers Apple’s rating from “outperform” to “perform.”

This is the fifth downgrade this month, following similar moves by Jefferies, MoffettNathanson, Loop Capital, and DBS Bank. Among major tech stocks, only Tesla has received fewer positive ratings than Apple.

Why Are Analysts Worried?

Oppenheimer analyst Martin Yang pointed to two major risks for Apple’s iPhone business:

1. Stronger competition in China – Chinese smartphone makers are gaining market share.
2. Lack of AI-driven features – Apple has not yet introduced major AI advancements to encourage customers to upgrade their devices.

Research shows that iPhone sales in China dropped by 18.2% in the last quarter of 2024, while global sales fell by 5%.

Apple Stock Reacts to the News

On Wednesday, Apple shares dropped by 1.3%. The stock remains 9% below its record high from December. However, it gained 7% over the past two days, its biggest rally since June.

Despite concerns, some investors remain optimistic. The rise of China’s AI startup DeepSeek has been seen as a positive development for Apple, though it has impacted the broader tech sector.

Apple is set to report its first-quarter earnings after markets close on Thursday. Investors are closely watching to see how the company responds to these challenges.