Analysts Raise Concern As Apple Stock Slips Amid Fears Of Potential Revenue Decline And Looming Chinese Competition

Shares of Apple Inc. AAPL are down amid expectations of a fourth consecutive quarter of declining revenue and growing competition in China,

Apple’s stock has fallen about 1.5% this week and is now approximately 11% below its 52-week high seen in mid-July. Despite this, the tech giant’s shares remain higher from the start of the year, with a gain of almost 36%, as reported by CNBC.

Apple, under the leadership of CEO Tim Cook, has shown signs of weakness in previous quarters, with revenue for flagship products such as the iPhone and Mac slowing. Analysts anticipate that the company will report another revenue decline when fiscal fourth-quarter results are released on Nov. 2.

“U.S. sales are going to be really weak,” said Brandon Nispel, an analyst at KeyBanc Capital Markets, citing no more aggressive promotions by wireless phone networks than in the past few years. Nispel also pointed to increased competition from Huawei in China as a potential drag on the stock.

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A recent report from Jefferies indicated that Apple has lost its position as the leading handset market share leader in China. This, along with concerns about geopolitical issues, is seen as a major headwind for Apple.

UBS analysts also highlighted risks to the iPhone 15 Pro handsets, which they believe are already showing signs of weaker demand compared to last year’s iPhone 14 lineup.

Furthermore, Apple’s relatively subdued approach to artificial intelligence (AI) could be contributing to the stock’s struggles, according to Melius Research analyst Ben Reitzes.

He stated, “It's really important for Apple to establish its AI strategy, and I think investors are looking for that.”

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