Overview

• Needham analysts downgraded Apple from Buy to Hold over growing generative AI competition and the absence of an imminent iPhone replacement cycle.
• The firm withdrew its $225 price target, noting shares now trade at about 26 times projected 2026 earnings, roughly 50% above their 10-year average.
• Apple stock has fallen nearly 19% year-to-date, making it the weakest performer among the “Magnificent Seven” Big Tech names.
• Counterpoint Research trimmed its 2025 global smartphone shipment growth forecast to 1.9% from 4.2%, citing uncertainty around US tariffs on imports.
• Analysts warn that without a cloud-based AI platform, Apple’s generative AI investments remain cost centers rather than new revenue drivers.