Jefferies analysts warn that tech giant Apple (AAPL) will continue to see iPhone sales underperform in China as demand for its newest models remains timid. This warning comes after iPhone sales in the country diminished greatly from November to December. The firm believes limited enhancements in the latest models and recent consumer upgrades are behind the falling iPhone sales.
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Apple’s uphill battle to increase iPhone sales in China may be aided by the country’s government. China’s government subsidies will include the iPhone, which may help stabilize the company’s sales. Even so, the Jefferies analysts warn that Q1 iPhone sales are expected to fall unless Apple introduces further discounts. Doing so might help attract customers at a time when China’s economy is struggling.
Jefferies Stance on Apple Stock
Jefferies’ warning today matches the firm’s stance on Apple’s shares. 4.5 star analyst Edison Lee reiterated the firm’s Hold rating for AAPL shares in December while maintaining its $211.84 price target for the company’s shares. That represented a potential 14.14% downside for AAPL stock.
Lee isn’t alone in his wary stance on AAPL stock. Five-star Barclays analyst Tim Long initiated coverage of the shares today with a Sell rating and $184 price target, representing a potential 25.34% downside. However, five-star Citi analyst Atif Malik reiterated a Buy rating and $255 price target today, representing a possible 3.47% upside for the stock.
Is AAPL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Apple is Moderate Buy based on 19 Buy, eight Hold, and two Sell ratings over the last three months. With that comes an average price target of $245.29, a high of $325, and a low of $184. This represents a potential 0.39% downside for AAPL shares.
