AI features are not optimistic! Apple’s stock rating is downgraded
US investment bank Jefferies has downgraded Apple’s stock rating from “buy” to “hold” due to concerns that the market has over-expected the AI capabilities of the new iPhone.
Jefferies analyst Addison Lee noted that smartphone hardware is not yet advanced enough to meet the level of high-tech artificial intelligence analysts and iPhone consumers expect, and he believes Apple shares will fall about 6% to $213.
According to industry reports, global pre-orders for the iPhone 16 fell by about 13% compared to its predecessor, and market demand was not as strong as expected. Although Apple’s initial sales in the Chinese, American and Korean markets were quickly sold out, this was more due to limited inventory.
Addison mentioned in the report that smartphones, unlike AI servers, lack high-speed memory and advanced packaging technology, which limits their AI capabilities.
Yahoo Finance also said that Apple’s first iPhone 16 equipped with AI has disappointed Wall Street so far. Analysts said that consumer demand for Apple’s iPhone 16 is weaker than previous iPhones.
JPMorgan Chase’s latest survey also shows that although the iPhone 16 is faster, few people cite the upcoming AI features as a purchasing motivation.
In addition, according to the latest data from market research firm CINNO Research, after 46 months, Huawei’s domestic mobile phone sales once again surpassed Apple in August 2024.
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