Morgan Stanley cuts Apple price target from $275 to $252.
AI-upgraded Siri launch delayed, raising concerns about iPhone sales.
iPhone shipment estimates for 2025-2026 lowered by 1-5%, with 2025 shipments expected at 230 million units.
Tariff burdens also contributed to price target adjustment.
Opinion
The delayed AI-enhanced Siri rollout and lack of immediate innovation in iPhones are clear negative factors for Apple's stock. As AI adoption accelerates across the industry, Apple risks falling behind competitors in consumer appeal and innovation leadership.
Core Sell Point
AI feature delays and tariff pressures are acting as key headwinds for Apple's stock performance.
Apple (AAPL) shares have come under pressure recently due to AI feature delays and tariff burdens. Morgan Stanley analyst Erik Woodring maintained an Overweight (Buy) rating on Apple but lowered the price target from $275 to $252.
Key Reasons for Target Cut
AI-Enhanced Siri Delayed: Woodring highlighted that delays in the AI-upgraded Siri could negatively impact iPhone sales, as AI improvements are among the most anticipated upgrades.
Apple’s stock declined for three consecutive sessions following news of the Siri delay.
Lower iPhone Shipment Estimates:
Woodring trimmed 2025 and 2026 iPhone shipment forecasts by 1-5%,
Predicting iPhone shipments will reach approximately 230 million units in 2025.
Tariff Concerns:
U.S. import tariffs are another headwind for Apple, potentially impacting profitability.
Despite these short-term challenges, Woodring maintained a Buy rating, citing Apple’s long-term strengths. However, he acknowledged that the AI delay and trade issues justify a price target reduction to $252.
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