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 drop 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 shipments reportedly fell by 10-12% in December 2024, further exacerbated investor anxiety. Additionally, the upcoming ultra-thin iPhone models, expected to support only eSIM, may encounter challenges in the Chinese market, where traditional SIM cards remain prevalent. This cautious outlook, along with skepticism about Apple's on-device AI driving hardware upgrades or services revenue, contributed to the negative sentiment.
The Direxion Daily AAPL Bull 1.5X Shares (AAPU) ETF experienced a decline, dropping 4.59% to $33.64 at 5:00 PM on Friday, January 10.