iPhone growth slows, Apple sales and profits expected to decline in 2024

A Wall Street investment firm slashed its price target on Monday apple (AAPL) stock, citing weak demand, especially in China, where iPhone orders have declined.


Loop Capital analyst Ananda Baruah reiterated her hold rating on Apple stock and lowered her target price to 170 from 185.

In early trading Today’s stock marketApple shares fell 0.9% to 169.99.

“We now expect Apple’s overall revenue and EPS (earnings per share) to decline year over year in 2024 for the first time since 2016,” Baruah said in a client note.

Quarterly forecasts at risk

He said there was “some risk” to consensus expectations for Apple’s March quarter results, while Wall Street’s expectations for Apple’s June quarter results faced “significant risks.”

“Simply put, iPhone shipments are too weak due to a combination of organic demand and competition,” Barua said. He also said that Apple experienced a flattening of iPhone average selling prices for the first time in years. .

Barua said that in China, Apple faces fierce competition from domestic brands Huawei and Xiaomi.

Apple shares are down 11% year to date

Meanwhile, potential positive catalysts for Apple stock could come from news about artificial intelligence and its Vision Pro headphones, Baruah said.

Loop Capital analyst John Donovan said in a separate report on Monday that the company’s examination of the Asian supply chain showed that Apple has “significantly” reduced iPhone production.

Donovan said Apple has lowered its 2024 iPhone order forecast to 199 million units, a decrease of 7% to 8% from the previous target.

Apple shares have fallen more than 11% so far this year.

Follow Patrick Seitz on X (formerly Twitter): @IBD_PSeitz Read more stories about consumer technology, software and semiconductor stocks.

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