Apple took a knock on Tuesday as its shares fell by 4% following a downgrade by Barclays. The stock was downgraded to underweight and the price target was cut from $161 to $160, causing concern among investors. Analyst Tim Long pointed to lacklustre sales of the iPhone 15 in China as a potential red flag for the future sales of the iPhone 16. The decline in iPhone volumes and sales, as well as a lack of growth in Macs, iPads, and wearables, has captured the attention of both analysts and investors.

There have been whispers about the Chinese government advising state employees against using iPhones, adding to the uncertainty. Long also expects a slowdown in growth for Apple’s services business, possibly due to increased regulatory scrutiny. This part of the company has been a bright spot, with services like the App Store and Apple Music bringing in double the margin compared to hardware products.

However, Barclays has expressed doubts about the future growth of these services, especially with concerns about the payments Google makes to Apple for retaining its default search status. It has been disclosed that Google pays a massive 36% of its Safari search revenue to Apple, and regulatory investigations from different fronts could intensify in the coming years.

So, what does this all mean for the future of Apple shares? It seems that investors are unsettled by the potential warnings from Barclays and Tim Long. The uncertainties in the Chinese market and the scrutiny over Apple’s dealings with other tech giants have left many wondering about the long-term prospects for the tech giant.

It’s a bit like a roller coaster ride for Apple at the moment, with the ups and downs of their hardware and services business being closely monitored by both investors and analysts. The future is uncertain, but one thing’s for sure – the tech world is holding its breath to see what happens next for the big Apple.