Barclays downgrade of Apple a week after iOS 16’s launch had a deep impact on the stocks. On September 16, Apple stock price fell almost 3.6% to a seven-week low, filtering doubt into traders’ minds.
Barclays Wall Street analyst Tim Long states, “Early pre-order data from China points to a softer start to the IP16 cycle, with a negative mix shift due to weakening consumer spend, macro pressure, and competition.”
All these factors have never been a hurdle for Apple, as the tech giant has always managed to swim above the high tides. However, in recent years, the sales of iPhones in China have been consistently dropping.
The two reasons could be promoting local tech brands and the roll-out of Apple intelligence in the Chinese language, not before CY2025. Expert traders also noticed pro model orders dropped by double digits annually, and base and plus models showed yearly growth. In fact, last year, the wilting pre-orders and demand imbalance led to significant price discounts of 20% for iPhone 15.
The sell-through rates (STR) of Apple will be adjusted for initial orders in early October, corresponding with the launch of iOS 16 Pro. It will add two extra days of STR to the September quarter. Tim Long predicts this will create a slowness in the December quarter into the basic selling points, as already reported by many suppliers.
Despite all these factors, other trade analysts are hopeful Apple stocks will soon rise, and the iPhone will reclaim its well-deserved first position. With an additional 22 buys and 9 holds, the average price target still sits around $249.46, predicting a 15% climb over the next 12 months.
Though the competition is high, we hope loyal Apple consumers will turn their interests again towards Apple, not just in China but all over the world as well.
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