Apple shares fell Tuesday after Jefferies downgraded the stock to an “underperform” from “hold” on Monday, noting that flagging iPhone sales and weak demand for its artificial intelligence (AI) features in newer models would lead the tech giant to undershoot quarterly revenue forecasts.

Earlier today, it was reported that Apple's (NASDAQ: AAPL) iPhone sales fell 18.2% in China in the fourth quarter of 2024, while the resurgent Chinese rival Huawei Technologies took the top spot, according to Counterpoint Research. Apple is slated to report its fiscal first quarter results on Jan. 30.

Fintel reports that on January 21, 2025, Jefferies downgraded their outlook for Apple (NasdaqGS:AAPL) from Hold to Underperform. Analyst Price Forecast Suggests 7.89% Upside As of December 23, 2024, the average one-year price target for Apple is $248.

Forecasts for weak iPhone sales and a weaker update of new artificial intelligence features prompted strategists led by Edison Lee to lower the rate to Underperform from Hold.

In China, Apple’s second largest market, iPhone sales fell 18% in the December ending quarter, according to Bloomberg.

Ananda Baruah, analyst from Loop Capital, downgraded Apple from "Buy" to "Hold," with a revised price target of $230, down from $275. The analyst concerned over iPhone demand reduction since March 2024.

Jefferies downgraded the Apple stock to "underperform" from "hold" and lowered its price target to ₹200.75 from ₹211.84.

Several Wall Street analysts have cut their ratings or price targets on Apple stock ahead of the company's earnings report next week.