AAPL in Focus: Analyst Downgrades Apple (AAPL) Amid High iPhone 16 Expectations

Monday, 7 October 2024, 10:42

AAPL finds itself in a precarious position as Apple (AAPL) faces heightened expectations concerning the iPhone 16. Analysts, including Edison Lee of Jefferies, are revising projections, expressing concerns that the optimism around the new smartphone release may be exaggerated. This crucial analysis sheds light on how these factors might impact AAPL's future performance.
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AAPL in Focus: Analyst Downgrades Apple (AAPL) Amid High iPhone 16 Expectations

AAPL Under Pressure

AAPL, the stock of Apple Inc. (NASDAQ: AAPL), is experiencing significant scrutiny due to analyst concerns over the iPhone 16. In the latest assessment, Jefferies analyst Edison Lee downgraded AAPL from Buy to Hold, adjusting the price target to $219.92 on October 7. Lee suggests that expectations surrounding the iPhone 16 and iPhone 17 might be overly optimistic, with limited new features potentially leading to underwhelming demand.

Future Growth Projections

  • Jefferies predicts only a 2.5% growth in iPhone 16 sales.
  • Long-term potential for AI-capable iPhones remains strong, with a forecast of 490 million such devices by late 2026.

Despite overall bearish sentiment, some analysts maintain a positive outlook. For instance, Atif Malik from Citi retained a Buy rating with a target of $255, contrasting the concerns raised by Jefferies.

Market Reactions

AAPL's share price has been affected, trading down following the downgrade. Analysts remain divided, with companies like Goldman Sachs projecting a target of $276 due to potential growth in AI investments.

Investment Considerations

As the iPhone 16 launch rolls out, Apple investors are closely monitoring demand shifts and upcoming features, such as iOS 18.1. AAPL is trading in line with broader market trends, closing at $226 on October 4, down 1% overall.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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