Shares of Apple Inc. have dropped today amid concerns that the enthusiasm for the new iPhone 17 may be waning.
It slows down momentum
Edison Lee, an analyst at Jefferies, noted that the initial surge of interest in the new model, which was introduced earlier this month, seems to be fading. He maintains a holding rating with a target price of $205.82.
According to Lee, the declining delivery lead times suggest that customer demand is decreasing. He emphasized that the US market is particularly sluggish, showing zero lead times for the iPhone 17 compared to other major markets.
“This aligns with our perspective that many consumers opted for new iPhones in the June quarter due to tariff concerns,” he stated. “In China, while the initial response has been better than anticipated, that momentum also seems to be slowing, as indicated by falling resale prices in Hong Kong.”
In China’s key market for Apple, pre-orders for the phone were remarkable, with online sales surpassing the total pre-order volume for the iPhone 16 series within minutes. This trend could pose challenges for Apple, especially with tough competition from local brands like Huawei.
Positive bite
Still, as the saying goes, different analysts can interpret data in varied ways.
Amit Daryanani from Evercore ISI observed that lead times for the iPhone 17 and Pro/Pro Max models seem to be stabilizing at levels similar to last week.
William Power from Robert W. Baird reiterated his buy rating for Apple, setting a target price of $230. He believes that the company’s strong market position and ability to handle challenges have positively influenced his outlook. Power pointed out that Apple’s reputable brand, innovative products, and steady financial performance make it an attractive investment.
Similarly, Bank of America Securities analyst Wamsi Mohan, in a report released today, maintained a buy rating on the stock, with a price target of $270.00.
Is AAPL the right stock to buy now?
According to Tipranks, AAPL has a medium buy consensus, composed of 17 buy ratings, 14 holds, and two sell ratings. The highest price target is set at $310, while the consensus price target is $251.24, indicating a slight downside of 0.79%.
