Apple Analyst Flags iPhone AI Struggles, Google Deal Risks
Apple Inc (NASDAQ:AAPL) stock is trading lower Tuesday after MoffettNathanson analyst Craig Moffett downgraded Apple from Neutral to Sell and lowered the price target from $202 to $188, citing iPhone 16 models with artificial intelligence features failing to gain traction and geopolitical tensions with China.
Additionally, Alphabet Inc’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google deal to pay Apple over $20 billion annually to make its search engine the default on iPhones is threatened by an antitrust lawsuit against Google. UBS’s David Vogt recently slashed the iPhone sales forecast for December, citing dwindling market share in China.
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Apple’s smartphone sales in China dipped to 15.6% in the third quarter, while Huawei posted a 42% jump. Both companies offered discounts to reach a broader customer base.
Meanwhile, Apple remains invested in scaling its News app and improving advertising effectiveness, seeking growth from the publishing industry.
The iPhone …
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