Apple stock (AAPL) is facing its sixth consecutive day of decline, with the stock down 1.1% to $173.50 in afternoon trading on Friday. If this downward trend continues, it will mark the longest losing streak since January 2022, as reported by Dow Jones Market Data.
Concerns Surrounding Global iPhone Demand
One of the main factors contributing to the decline in Apple stock this week is concerns raised by Wall Street analysts regarding global iPhone demand. Analyst Amit Daryanani from Evercore ISI noted in a research note on Friday that demand for different iPhone 15 models has been mixed.
According to Daryanani, “The data points continue to point to stable demand for the iPhone 15 Pro and Pro Max models compared to a year ago across most geographies, while the lower-end models have experienced significant declines in lead times this week.” He has given the stock an Outperform rating with a $210 price target.
Decreased Wait Times for iPhone 15 Pro Model
Another analyst, David Vogt from UBS, who rates Apple as Neutral with a $190 price target, stated in a research note on Tuesday that wait times for the iPhone 15 Pro model have decreased by an average of five days compared to last year. This information is based on UBS Evidence Lab data, which tracks iPhone availability across 30 countries.
In conclusion, Apple stock is currently facing a downward trend, driven by concerns about global iPhone demand. Despite stable demand for the higher-end iPhone 15 models, there have been significant declines in lead times for lower-end models. Additionally, the wait times for the iPhone 15 Pro model have decreased compared to last year.
Apple Faces Limited Upside for iPhones in China, Analyst Says
An analyst has expressed concerns over the limited upside for iPhones in China, despite upcoming catalysts such as the holiday season and Singles’ Day. Huawei’s Mate60 is posing a significant challenge to Apple in the competitive Chinese market. Although Apple has not yet responded to a request for comment, sales of the iPhone are crucial for the company as they accounted for $205.5 billion of its total revenue of $394.3 billion in 2022.
Apple reported a 4% decline in revenue from product sales in its third quarter ended July 1, which was attributed to foreign-exchange rates and an unstable economic environment. In addition, rising bond yields have negatively impacted growth stocks, including tech companies like Apple, by reducing the present value of future earnings. The yield on the 10-year Treasury note rose to nearly 5%, representing a 1.2 percentage point increase since July.
Investors are eagerly awaiting Apple’s fourth-quarter earnings report, scheduled for release after the market closes on Nov. 2. During this announcement, management is expected to provide insights into iPhone demand.