Barclays has reduced its price target for Apple Inc. (NASDAQ: AAPL) from $197 to $173, maintaining an “Underweight” rating. This adjustment suggests a potential downside of nearly 20% from the stock’s recent levels. The decision is driven by concerns over weakening demand for Apple’s hardware products, particularly the iPhone, and the impact of recent U.S. tariffs.
Analyst Insights
Tim Long, an analyst at Barclays, highlighted several factors influencing the revised outlook:
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iPhone Demand: Anticipated slowdown in iPhone sales, especially in the latter half of 2025, due to potential price increases and delayed adoption of AI features.
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Wearables and Accessories: Expected decline in sales of wearables and AirPods, attributed to economic sensitivity and macroeconomic challenges.Investors.com
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Tariff Implications: Recent U.S. tariffs could lead to price hikes, potentially dampening consumer demand and affecting earnings.
Other analysts have echoed similar sentiments. Loop Capital’s Ananda Baruah lowered his price target to $215 from $230, citing iPhone supply-chain data. Raymond James’ Srini Pajjuri reduced his target to $230 from $250, noting that tariffs could decrease Apple’s earnings per share by 8% to 10% .Investors.com
Market Reaction
Despite these concerns, Apple shares experienced a modest rebound, closing at $212.50, up 0.6% on the day. This recovery followed an earlier dip of 2.1% during the trading session. Investors are now closely watching Apple’s upcoming fiscal second-quarter earnings report, with expectations of $1.62 per share on $94.25 billion in sales.
