Apple 'At Some Risk' Of Revenue Drop In Calendar Year 2024, Says Analyst: 'iPhone Unit Shipments Are Simply Too Soft' (UPDATED)
Portfolio Pulse from Rounak Jain
Apple Inc. (NASDAQ:AAPL) is at risk of reporting its first revenue and earnings per share (EPS) decline in a decade during the March 2024 quarter, primarily due to a significant drop in iPhone sales in China. Loop Capital analyst Ananda Baruah has lowered Apple's stock target price to $170 from $180, maintaining a 'Hold' rating. The decline in sales is attributed to a 30% year-over-year decrease in iPhone sales in China, amidst a 7% overall decline in the country's smartphone sales. Despite these challenges, upcoming AI developments and the Vision Pro headset sales could potentially boost Apple's stock.
April 02, 2024 | 8:26 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Apple Inc. faces potential revenue and EPS decline in March 2024 due to falling iPhone sales in China, with its stock target price reduced to $170 by Loop Capital.
The projected decline in Apple's revenue and EPS is directly linked to a significant drop in iPhone sales in China, a key market for Apple. This situation is exacerbated by the competitive landscape in China and a flattening average selling price for iPhones. The reduction in Apple's stock target price by Loop Capital reflects the anticipated impact of these challenges on Apple's financial performance. However, potential positive developments such as AI announcements and the Vision Pro headset sales could offer some offsetting positive momentum.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100