Tech giant Apple (AAPL) has faced a growing amount of trouble of late, starting with growing discontent with European regulators. But new troubles over the speed of artificial intelligence (AI) rollouts, as well as a growing concern about iPad sales, are weighing the company down. But investors remain optimistic, and shares were up fractionally in Wednesday afternoon’s trading.
Reports suggested that artificial intelligence hype gave Apple stock a significant boost in recent weeks. But the converse may also prove true; the longer Apple delays in augmenting Siri to the point it can match the hype, the more damage Apple is likely to see hit its stock.
Worse yet, the Apple product line does not seem to be helping things out much. The current iPhone cycle is regarded as “weak,” and it is showing in revenue. Revenues are up just a meager 1.6%, and given that the Apple device business is over half of Apple’s total revenue, such strictures are likely to restrain the entire stock.
The Massive iPad Fire Sale
The idea that Apple’s device market is not holding up well might sound hard to believe—revenues are up, after all—but one point emerged that underscores the idea that people just are not buying Apple products at the same rate they were nicely. Reports noted that Amazon (AMZN) recently cut 23% off the price of the 10th-generation iPad, dropping it from $349 to $269.
So for those who have not upgraded an iPad in a while, or have always wanted one, this may be the best time to get in on the action. This is, however, essentially a three-year-old device; Apple released the 10th-generation iPads back in 2022. Some regard it as the best iPad ever released. But if the older models start looking particularly attractive, this may hurt sales of the newer material, especially considering how carefully people are watching money these days.
Is Apple a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, 11 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 20.82% rally in its share price over the past year, the average AAPL price target of $249.88 per share implies 16.29% upside potential.
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