Apple shares fall 4% after Barclays downgrade

Apple shares fall 4% after Barclays downgrade

Apple shares fall 4% after Barclays downgrade

Apple shares fall 4% after Barclays downgrade

Apple shares experienced a 4% decline on Tuesday following Barclays’ decision to downgrade the stock to underweight. Additionally, Barclays slightly adjusted its price target for Apple from $161 to $160.

In a note to clients on Tuesday, Barclays analyst Tim Long expressed concerns about the current “lackluster” sales of the iPhone 15, particularly in China. Long anticipates that this trend may continue with weak sales for the iPhone 16 and across Apple’s hardware products.

The Apple shares witnessed a 4% decline

The analyst highlighted ongoing weaknesses in iPhone volumes and mix, as well as a lack of recovery in Macs, iPads, and wearables. Reports of diminished iPhone sales in China had been observed as early as October, with speculation about the Chinese government discouraging state employees from using iPhones, although the government denies issuing such guidance.

Tim Long also predicted a slowdown in the growth of Apple’s lucrative services business, citing regulatory scrutiny as a contributing factor. While Apple CEO Tim Cook previously noted “better-than-expected” growth in the services unit during an investor call, Barclays remains cautious about its long-term reliability.

Looking ahead to 2024, Long mentioned the potential impact of the Google Traffic Acquisition Costs (TAC) determination and escalating investigations into app store practices. He referred to the payments Google makes to Apple to retain its default search status on Safari, with Google CEO Sundar Pichai confirming a 36% share of Safari search revenue paid to Apple. Regulatory authorities are closely examining both Apple and Google regarding their default search status.

Jason Stone

Jason Stone

Jason Stone is a serial entrepreneur with multiple 7 figure business ventures across various verticals of web and marketing. He is widely known by over 7 million people around the world as @Millionaire_Mentor on Instagram. Jason utilizes his experience and passion as a motivator, mentor, teacher, and social media influencer to help others create success. Jason Stone is an accomplished Senior Executive, Consultant, and Thought Leader with more than 20 years of success across the engineering, e-commerce, social media, internet, marketing, advertising, technology, automotive, blockchain, franchising, and health and wellness industries. He is an early-stage startup tech investor/advisor to over a dozen companies. Leveraging extensive experience creating go-to-market strategies and viral marketing, he is a valuable advisor for an organization experiencing growth or launching new products. His broad areas of expertise include business development, mechanical engineering, global strategy, email marketing, digital marketing, automation, blockchain, organizational leadership, and growth hacking. t
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