Oppenheimer has downgraded Apple Inc. (AAPL, Financial) from "outperform" to "perform," reflecting investor caution ahead of the company's upcoming earnings report. This marks the fifth downgrade for Apple this month, following similar actions by Jefferies, MoffettNathanson, Loop Capital, and DBS Bank. The downgrades highlight Apple's status as one of the least favored large tech stocks, second only to Tesla.
Oppenheimer analyst Martin Yang cited concerns over iPhone sales as a key reason for the downgrade. He pointed to dual challenges impacting iPhone growth: increasing market competition and a lack of compelling applications in Apple Intelligence and generative AI to entice consumers into upgrading their devices.
Independent research indicates that heightened market competition has led to an 18.2% decline in iPhone sales for the December quarter, with global sales dropping by approximately 5%. Apple is set to release its first-quarter earnings report soon, which will provide further insights into its performance amid these challenges.
