Apple's stock faced significant pressure today following a report from analyst Ming-Chi Kuo, which projected a decline in iPhone shipments for 2025, falling short of Wall Street expectations. The report highlighted a potential 6% y/y decline in shipments for the first half of 2025, despite the anticipated launch of the new iPhone SE4. Concerns over Apple's market share in China, where iPhone shipments reportedly dropped by 10-12% in December 2024, further exacerbated the negative sentiment. Additionally, the upcoming ultra-thin iPhone models, expected to support only eSIM, may face challenges in the Chinese market, where traditional SIM cards remain prevalent. This cautious outlook, coupled with skepticism about Apple's on-device AI driving hardware upgrades or services revenue, contributed to the stock's decline.
The Direxion Daily AAPL Bear 1X Shares (AAPD) ETF rose 2.35% to $16.14 at 5:00 PM on Friday, January 10.