Apple Inc. is facing headwinds as Oppenheimer downgraded the tech giant's stock from outperform to perform, citing concerns over weakening iPhone sales and a lack of innovation in artificial intelligence. The downgrade comes ahead of Apple's upcoming earnings report, with Oppenheimer analyst Martin Yang highlighting a weaker outlook for iPhone sales over the next 12 to 18 months. Yang pointed to increased competition in China and the absence of compelling AI applications as significant challenges for Apple's growth. The analyst noted that iPhone shipments in China fell by 25% in the fourth quarter, and the company is expected to see only a 2% growth in shipments heading into fiscal 2026.
This downgrade is part of a broader trend, as Apple has received at least five downgrades this month from various firms, including Jefferies and Loop Capital. The downgrades reflect growing caution among analysts regarding Apple's ability to maintain its premium valuation amid slower iPhone growth and uncertainties in its AI strategy. Despite these concerns, a majority of analysts still hold a positive outlook on Apple, with 32 out of 48 analysts rating the stock as a buy or strong buy.
Apple's stock is currently trading at $234.10, down 1.75% from its previous close of $238.26 on January 28th.