Shares in U.S. tech giant Apple (AAPL) were lower today on fears that demand for its new iPhone 17 was “cooling off.”
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Slowing Momentum
Edison Lee, analyst at Jefferies, said that the “initial strong momentum” for the new model, launched earlier this month, was slowing. He retained a Hold rating and a $205.82 price target.
Lee said delivery lead times have been falling, indicating a slowing down in customer demand. He said that in particular, the U.S. remains the weakest market with the lead time on iPhone 17s being zero versus double-digit in other key markets.
“This is consistent with our view that many consumers bought a new iPhone in the June quarter due to tariff concerns,” Lee said. “For China, the initial market response is stronger than expected, but momentum also seems to be slowing. Our tracking of resale prices in Hong Kong shows that they have fallen.”
In China, a key market for Apple, the initial preorder numbers for the phones had been impressive. Online sales had surpassed the entire first-day preorder volume of the iPhone 16 series within minutes of going live. So these reports will be unsettling for the company which is trying to fight off intense competition in China from domestic rivals such as Huawei.
Positive Bites
However, as the old saying goes, one analyst’s interpretation of data can differ from another analyst’s interpretation of data.
Amit Daryanani, analyst at Evercore ISI said that lead times appear to have stabilized at similar levels to last week across the 17 and Pro/Pro Max models, with lead times largely in line with the level seen last week.
William Power of Robert W.Baird reiterated his Buy rating on Apple and a price target of $230. He said its robust position in the market and its ability to navigate challenges effectively contributed to his rating. The company’s strong brand, innovative product lineup, and consistent financial performance make it a compelling investment opportunity, he said.
In another report released today, Wamsi Mohan, analyst at Bank of America Securities also maintained a Buy rating on the stock with a $270.00 price target.
Is AAPL a Good Stock to Buy Now?
On TipRanks, AAPL has a Moderate Buy consensus based on 17 Buy, 14 Hold and 2 Sell ratings. Its highest price target is $310. AAPL stock’s consensus price target is $251.24, implying a 0.79% downside.
