Pair of analysts cut Apple ratings on iPhone concerns

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Apple has received a pair of analyst downgrades on concerns over iPhone sales, as the nascent Apple Intelligence rollout thus far fails to act as a growth catalyst.
Ryan Vlastelica for Bloomberg Newshttps://www.bloomberg.com/news/articles/2025-01-21/apple-s-tough-january-worsens-as-analysts-cut-on-iphone-weakness:
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The company was downgraded to hold at Loop Capital and cut to underperform at Jefferies, which became a rare firm with the equivalent of a sell rating on the stock. Just 8.5% of the analysts tracked by Bloomberg have a bearish rating, while about 63% have the equivalent of a buy.
Jefferies analyst Edison Lee writes that recent weakness in iPhone sales has been worse than expected, with the China market a particular concern. Independent research indicates that iPhone sales sank 18.2% in China during the December quarter, while global unit sales fell about 5% in the final quarter of last year amid higher China competition.
Citing a third-party survey, Lee added that “US consumers do not yet find smartphone AI useful,” meaning that it is “unlikely to kickstart a super upgrade cycle anytime soon.” Given these trends, he wrote, Apple’s March quarter guidance could disappoint.
Concurrently, Loop also cite concerns on iPhone weakness, expecting a “material iPhone demand reduction” beginning in the March quarter “but materially amplifying” in the subsequent two quarters…
Apple is scheduled to report its first-quarter results next week.

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MacDailyNews Take: As we wrote on January 3rd, the late-December-early January pump and dump ahead of earnings is in full operation.