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3mo ago

Apple Faces Downgrades as iPhone Sales Decline in China and AI Features Struggle

Analysts cite weak demand in China and limited AI adoption as key challenges for Apple, leading to significant stock losses.

Overview

  • Apple's iPhone sales in China fell 18.2% year-over-year in the final quarter of 2024, dropping the company to third place in the market behind Huawei and Xiaomi.
  • Jefferies and Loop Capital downgraded Apple's stock, citing weak iPhone demand, particularly in China, and limited consumer interest in AI features.
  • Apple Intelligence, the company's AI platform introduced with the iPhone 16, has faced a slow rollout and mixed reception, with its features unavailable in China due to regulatory hurdles.
  • The company's stock has dropped 11% in January 2025, erasing over $110 billion in market value and losing its position as the most valuable company to Nvidia.
  • Analysts expect Apple to miss its revenue growth forecast for the first quarter of fiscal year 2025, with further concerns about declining iPhone demand in upcoming quarters.