Apple stock (AAPL) experienced a decline of about 1.9% on Tuesday following a report by TF International Securities analyst Ming-Chi Kuo, which suggested a potential 15% decrease in iPhone shipments for the full year in 2024. Kuo, known for accurately predicting Apple’s previous actions, attributed the projected decline to reducing iPhone sales in China and the rise of AI-powered and curved phones that may impact iPhone sales throughout the year. According to Kuo, the company’s weekly shipments to China have dropped by 30%-40% on year-over-year basis in recent weeks, and this trend is expected to persist. This has led to downgrades from Barclays, Piper Sandler, and Redburn Atlantic, while Bank of America raised Apple’s stock, citing its Vision Pro title and AI output as potential drivers for future growth. Despite this, the company’s value is currently at $2.9 trillion, lower than Microsoft’s $3.05 trillion market cap as of Tuesday afternoon. Apple is gearing up for its most significant change yet, as it plans to make substantial modifications to its App Store policies in Europe to align with the European Union’s Digital Markets Act. The company is also facing scrutiny from the Justice Department regarding an unrelated lawsuit over its App Store practices. In addition, Apple is set to release a new product, the Vision Pro, described as a spatial computer and its first new offering since the Apple Watch, on Feb. 2. [7]
