Technology

It’s time to step to the sidelines on Apple, Oppenheimer argued on Wednesday. Analysts Martin Yang and Andrew Northcutt downgraded shares of the iPhone maker to Perform from Outperform, slashed estimates, and removed their $250 price target. Apple stock slipped 1.6% to $234.35 in premarket trading Wednesday. Over the last 12 months, shares have gained 28%. The analyst team cut their revenue and earnings-per-share forecasts for fiscal 2025 and 2026 to below consensus, citing reduced estimates for iPhone sales over the next 12 to 18 months. “We see a twofold challenge ahead for iPhone growth: 1) stronger competition in greater China and 2) lack of compelling Apple Intelligence and generative artificial-intelligence apps to accelerate near-term device replacement,” they wrote. iPhone sales have been slower than anticipated since September, and with Apple stock’s high valuation, Oppenheimer believes it will prove difficult for the shares to outperform from here. Apple reports fiscal-first-quarter

Apple (AAPL) is facing stronger competition in China and a “lack of compelling Apple Intelligence and generative AI apps to accelerate near-term device replacement,” analysts at Oppenheimer said Wednesday, downgrading the tech giant’s stock to Perform from Outperform. The Oppenheimer analysts cut their forecast for fiscal 2026 EPS by 4% to $7.95 based on reduced estimates for iPhone sales in the next 12-18 months. Analysts surveyed by FactSet expect $8.22 per share. With slower-than-expected iPhone sales and a lofty valuation, “we believe it will be challenging for AAPL to outperform,” Oppenheimer said.

Apple (APC.F) said it intends to continue engaging with the UK Competition and Markets Authority as the regulator launched a strategic market status investigation into the company’s mobile ecosystems amid competition concerns. In an e-mail response sent to MT Newswires on Thursday, the iPhone maker said it supports the British iOS developer community by providing tools, technologies, and services, as well as app development training and upgrade support services, among others. It noted that it does not charge commissions for 85% of the applications in its store. The watchdog, in an earlier same-day release, said it was investigating Apple and Alphabet (ABEA.F, ABEC.F) unit Google’s mobile operating systems, app stores, and browsers to evaluate the extent of competition between the companies; to assess if they are using their market position to favor their own products; and to study potential exploitative behavior.

Apple’s (AAPL) fiscal Q1 earnings results are poised to be in-line with consensus but revenue for the March quarter will be affected by muted iPhone demand and foreign exchange headwinds, Morgan Stanley said in a note Thursday. The firm said it will closely watch iPhone demand, especially in China, and any changes in pricing strategies or potential discounts to drive sales. Morgan Stanley said it is cautious about near-term stock movements but expects upcoming catalysts like the iPhone SE 4 launch, iOS 18.4 release, and potential cloud or AI partnerships in China to drive growth. Despite a low spend per user in 2024, there is a large base of eligible iPhone upgraders and Apple holds potential for long-term monetization through accelerated replacement cycles, targeted services monetization, and new product launches, the firm added. Morgan Stanley has an overweight rating on Apple’s stock with a price target of $273.