The tech colossus, Apple, faces turbulent times ahead as Barclays analysts predict a 17% nosedive in its stock price by 2025. The label of “underweight” has been slapped on the company, sparking concern over dwindling demand for iPhones, particularly in the vast market of China.
The seers at Barclays have foreseen a plummet to $160 for Apple’s stock, a staggering 17% drop from its current valuation. This grim prophecy has already sent shockwaves through the stock market, with Apple’s shares dropping by 3.5% on Tuesday, leaving investors in a state of worry.
This dramatic downgrade marks the first instance of the banking behemoth lowering its rating on Apple since 2019. The primary cause for concern has been lacklustre iPhone 15 sales in China and sluggish growth in other Apple products like Macs and iPads. With iPhones contributing to about half of Apple’s total revenues, the dwindling sales in this vital segment have dealt a severe blow to the company’s overall performance.
Industry analysts have observed a prolonged sluggishness in Apple’s quarterly growth over the past six quarters, a disheartening trend that appears to be continuing. The imminent release of the iPhone 16 in September is not expected to bring about any groundbreaking changes from its predecessor. This has only added to the mounting apprehensions about Apple’s prospects for future growth.
Although the company’s market capitalisation has recently surpassed the $3 trillion milestone, with predictions of reaching the dizzying heights of $4 trillion, Barclays remains unconvinced about Apple’s trajectory. The absence of new, trailblazing products and services, combined with the shifting preferences of consumers, is expected to make sustained growth a Herculean task for this tech giant.
Despite its formidable ecosystem and unrivalled dominance in the market, Apple finds itself at a crossroads, forced to undergo a radical transformation and prove its mettle as a global pioneer in innovation and technology. The burning question remains: will Apple emerge victorious or succumb to a monumental fall from its exalted perch? Only time will unfold this riveting tale.
