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Jefferies Downgrades Apple Amid Weak iPhone Sales

1/26/2025

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Summary

Story summary

Jefferies downgraded Apple Inc. to "underperform" due to weak iPhone shipments and diminished consumer interest in AI features.
Analysts predict a 5% revenue growth for Q4, falling short of previous estimates, despite a 13% increase in services revenue last fiscal year.
iPhone sales in China have declined by 18%, highlighting intense competition and potential risks from changes in revenue-sharing with Alphabet.
Investors should reconsider their positions in Apple stock in light of these challenges and evolving market conditions.

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Story summary

Jefferies downgraded Apple Inc. to "underperform" due to weak iPhone shipments and diminished consumer interest in AI features.
Analysts predict a 5% revenue growth for Q4, falling short of previous estimates, despite a 13% increase in services revenue last fiscal year.
iPhone sales in China have declined by 18%, highlighting intense competition and potential risks from changes in revenue-sharing with Alphabet.
Investors should reconsider their positions in Apple stock in light of these challenges and evolving market conditions.