Home 2024 Analyst Downgrade Signals iPhone Market Share Slip $AAPL

Apple, the tech titan long known for its glowing bite-shaped logo, might be experiencing a dimming of its luster. Shares plummeted 3.6% on Tuesday, marking the steepest drop since August, fueled by a Barclays analyst downgrade and whispers of an iPhone market share slide.

iPhone 15 Underwhelms, China Coughs:

Barclays analyst Tim Long pointed to “incrementally worse [iPhone 15] data points out of China” as a major culprit. The lackluster sales, likely to persist even post-iPhone 16 launch due to minimal upgrades, paints a worrying picture for Apple’s crown jewel.

Beyond the Phone: A Waning Symphony:

But iPhones aren’t the only instrument out of tune. Macs, iPads, and wearables also faltered, echoing the struggles of a PC industry burdened by post-pandemic purchasing fatigue. And even the seemingly booming services business, while growing marginally, faces potential headwinds from App Store battles and the uncertain future of its Google search deal.

Services Slowdown and the Google Cloud:

Long predicts a significant service growth slowdown in the coming years, down from ~20% to a tepid ~10% and ~8%. Regulatory scrutiny around the App Store and the potential expiration of the lucrative Google search engine deal pose further challenges.

Masimo Woes and the Vision Pro’s Uncertain Glow:

The legal fight with medical device maker Masimo over Apple Watch patents adds another layer of complexity. While the Vision Pro headset presents a glimmer of hope, its success remains a gamble in a nascent market.

A Bite Out of Future Growth:

The confluence of these factors – slowing iPhone sales, shaky services growth, and potential legal roadblocks – paints a worrying picture for Apple’s future. While the Vision Pro might offer a lifeline, it’s too early to predict whether it will be enough to reignite the company’s growth trajectory.

Investors, glued to their Apple Watches and iPhone screens, would be wise to heed the analyst’s warning. The once-shining apple might be losing its luster, and it’s time to assess whether it’s still a safe bite in their portfolios.

Shayne Heffernan

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