Downgraded to Perform: Oppenheimer Joins Apple Analyst Chorus
Oppenheimer has downgraded Apple Inc. (AAPL) to Perform from Outperform, the latest in a string of cautious assessments ahead of the company's earnings report.
This is the fifth downgrade for Apple this month, with similar actions from Jefferies, MoffettNathanson, Loop Capital, and DBS Bank. The consensus among analysts, including Oppenheimer's Martin Yang, centers around concerns over iPhone sales.
Yang foresees a "twofold challenge" for iPhone growth: intensified competition in China and a lack of compelling AI-driven applications to drive device upgrades.
Independent research suggests an 18.2% decline in iPhone sales in China during the December quarter, contributing to a global unit sales drop of approximately 5% in Q4 2022.
On Wednesday, Apple shares dipped by 1.3%. Despite remaining 9% below its December peak, the stock has recently enjoyed a 7% two-day rally, its most significant since June.
The rally reflects optimism surrounding DeepSeek, an emerging Chinese AI startup perceived as a potential boon for Apple.
Apple is scheduled to announce its Q1 results after the market closes on Thursday.