Apple shares dipped 4% after Barclays downgraded the stock. Analysts led by Tim Long gave the tech giant an underweight rating and a lower price target.
Barclays Predicts Decline on Apple
Barclays analysts set the price target to $160 from $161, predicting a 17% decline over the next year for the tech giant. The company explained that the iPhone 15 remains on the negative in terms of volumes and that no upgrades can potentially make the iPhone 16 more compelling to buyers.
"We are still picking up weakness on iPhone volumes and mix, as well as a lack of bounce-back in Macs, iPads, and wearables," Long wrote. Moreover, the declining iPhone sales in China had a big impact on it.
Moreover, Long also hinted that Apple's lucrative business will also experience a decelerate growth, as part of the regulatory scrutiny. On the other hand, Apple CEO Tim Cook previously emphasized a "better-than-expected" growth for this unit.
Apple in 2024
Apple ended 2023 with various issues thrown against the company. The company has an ongoing patent infringement battle with Masimo in terms of the Apple Watches. Meanwhile, both Apple and Google have been facing scrutiny over their search engine dominance.
"In 2024, we should get an initial determination on the Google TAC, and some app store investigations could intensify," Long added. The analyst also believed that small growth would not be that reliable in the long term.
On the contrary, Apple is already gearing up to roll out its biggest and newest device, the Apple Vision Pro. The headset is predicted to be released some time in February or March.
