As the new year dawns, Apple (NASDAQ:AAPL) remains at the pinnacle of the global technology and commercial conversation. The company is coming off a stellar year, one in which AAPL’s 2024 its shares rise over 30%, and it continues to be one of just a few multi-trillion-dollar behemoths on the market.
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One of Apple’s constants has always been its ability to innovate and introduce new products and concepts into the market, and this year promises to be no exception. Consumers can look forward to the introduction of new iPhones, iPads, MacBooks, Apple Watches, along with the addition of other AI-enhanced software updates.
Of course, Apple is more than the sum of all its technological parts. The company’s active (and loyal) user base numbering around 1.5 billion worldwide gives Apple plenty of built-in customers.
Scheduled to report its Q1 FY 2025 earnings next week on January 30th, can investors expect the coming year to deliver another bull run for the Silicon Valley stalwart?
While acknowledging the vast advantages Apple enjoys, top investor Yiannis Zourmpanos—who is among the top 2% of TipRanks’ stock pros—spots some clouds on the horizon.
“While upcoming product launches and strong geographic diversification provide growth potential, near-term headwinds, including foreign exchange pressures and weakening iPad and wearables segments, limit the upside,” cautions the 5-star investor.
Zourmpanos is particularly concerned about slowing top-line growth in Greater China, where net sales decreased by 7.7% in FY24. The investor cites a number of reasons for this drop, including the weakening renminbi against the U.S. dollar and increased competition from Chinese firms such as Huawei, Xiaomi, and Oppo.
This is a worrisome development for the investor, as this market represented some 17% of Apple’s global sales and is a “historically vital growth driver” for the company.
Another area of concern for Zourmpanos is Apple’s declining iPad sales, which fell by 5.7% in FY2024. The investor also cites falling net sales for wearables, home, and accessories, which decreased by 7.1% during this timeframe.
“Q1-FY25 results will be pivotal in determining whether Apple can offset these challenges and maintain its market leadership,” concludes the investor. Content to wait for the details to emerge, Zourmpanos is assigning Apple a Hold (i.e. Neutral) rating. (To watch Zourmpanos’ track record, click here)
Wall Street, however, seems to need no such reassurance at the moment. With 19 Buy, 7 Hold, and 3 Sell ratings, AAPL enjoys a Moderate Buy consensus rating. Its 12-month average price target of $244.77 would lead to ~6% gains in the coming year. (See AAPL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
