Apple stock drops 1.5% as analyst Kuo predicts 15% iPhone shipment decline in 2024
Apple stock falls 1.5% as analyst Kuo says iPhone shipments could drop 15% in 2024
In a report by TF International Securities analyst Ming-Chi Kuo, it is predicted that iPhone shipments will decline by as much as 15% year over year in 2024. This news caused Apple stock to fall approximately 1.9% on Tuesday. Kuo mentions that the decrease in sales is due to a drop in iPhone sales in China and the rising popularity of generative AI-powered and foldable smartphones. Apple’s weekly shipments in China have already declined by 30-40% year over year in recent weeks, and this trend is expected to continue. Other analysts, such as Barclays, Piper Sandler, and Redburn Atlantic, have also downgraded Apple’s stock due to concerns over iPhone sales in China. On the other hand, Bank of America has upgraded Apple’s stock, citing the potential growth catalysts of Apple’s Vision Pro headset and generative AI technology.
What’s going on here?
Apple’s stock has dropped after reports from analyst Ming-Chi Kuo predict a significant decline in iPhone shipments in 2024. The sales decrease is attributed to a drop in iPhone sales in China and the increasing popularity of generative AI-powered and foldable smartphones. Other analysts have also downgraded Apple’s stock due to similar concerns, while Bank of America has upgraded the stock, highlighting the growth potential of Apple’s Vision Pro headset and AI technology.
What does this mean?
The decline in iPhone shipments predicted by Kuo raises concerns about Apple’s future performance. If iPhone sales continue to decline, it could impact Apple’s overall revenue and profitability. It also indicates a shift in consumer preferences towards alternative smartphone options. The downgrades by analysts reflect these concerns, while the upgrade by Bank of America suggests potential positive growth with Apple’s new products.
Why should I care?
As an investor or someone interested in the tech industry, the decline in iPhone shipments and its implications for Apple’s stock are important to monitor. The iPhone has been a key driver of Apple’s success, and any significant decline in sales could have a broader impact on the company’s financial performance. Additionally, this news underscores the competition Apple faces from other smartphone manufacturers and the need for the company to innovate and diversify its product offerings to maintain its market position.
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