Apple Inc (NASDAQ:AAPL, ETR:APC) shares fell 3.6% to close at $185.64 on Tuesday after analysts at Barclays downgraded the stock to ‘Underweight’ from ‘Neutral,’ citing disappointing demand for its iPhone 15.
Saying it was time to take a “breather,” the analysts also cut their target price for Apple to $160 from $161.
“We are still picking up weakness on iPhone volumes and mix, as well as a lack of bounce-back in Macs, iPads and wearables,” the analysts wrote in a note to clients.
“The biggest takeaway from the latest checks is incrementally worse [iPhone] 15 data points out of China, together with developed markets remaining soft.”
Apart from lackluster iPhone 15 sales, the analysts said they see no features or upgrades to make the upcoming iPhone 16 more compelling.
“We expect reversion after a year when most quarters were missed and the stock outperformed,” the analysts wrote.